WallStreetBets investment nerds

[jterrell]

What or who is ‘WallStreetBets’?

https://finance.yahoo.com/news/what...-that-is-pummeling-wall-street-162734056.html

WallStreetBets is actually “r/wallstreetbets” and it’s a forum or “subreddit” on the popular website Reddit, which is a social platform and discussion group that also rates web content.

Essentially, it’s a group of people who enjoy talking about investing and often, speculative investing. Given that it’s on Reddit, it is accompanied by traditional Reddit-house style, which often includes profanity, irony, and a tremendous dose of memes.

Daily Discussion thread: https://www.reddit.com/r/wallstreetbets/comments/l7ptxi/daily_discussion_thread_for_january_29_2021/

---------------
Why care???
Because investing is mostly riding hype and there has been no greater hype than this since the Dotcom days. Lotsa nerds with laptops and a thousand bucks got rich back then.
Quite possible it happens again if they focus on real gains.
AND because it's quite lesson they are teaching Wall Street about investing heavily in companies demise for profit. Hedge funds bet millions on some poor company failing as they see it dive then provide fire to watch it burn as they make money. This millennial driven movement is propping up those companies and costing those same Hedge funds dearly.


Not sure anyone cares but I am currently investing this side project (i.e. not 401K or real retirement accounts but just entertainment money) in:
$DOGE
$NOK
$BB

 

[BigStar]

Saw what they did to the hedge funds betting against Gamestop. How did they actually manipulate the system so the price went back up wo getting too into it? That's the one aspect of the story the media glosses over, that it was done by this subreddit group---but how? Us interested parties would love to know how

They detail how hedge funds are losing money and how they are reaping what they have sown, but don't really tell you how the redditors were able to get that price back up- a lot of small purchases combined as one? Probably don't want a repeat so are not relaying what happened word for word. I heard they deleted that subreddit already as well.

 

[InTheZone]

Saw what they did to the hedge funds betting against Gamestop. How did they actually manipulate the system so the price went back up wo getting too into it? That's the one aspect of the story the media glosses over, that it was done by this subreddit group---but how? Us interested parties would love to know how

They detail how hedge funds are losing money and how they are reaping what they have sown, but don't really tell you how the redditors were able to get that price back up- a lot of small purchases combined as one? Probably don't want a repeat so are not relaying what happened word for word. I heard they deleted that subreddit already as well.

Wsb has not been deleted. But we have seen consistently in msm knowingly lying and attaching radical labels (wow where have we seen this before for the last 4 years) to these groups to cover for the right guys in suits. Theres tons of videos on youtube that explain whats happening, even if theyre not stock guys they get the general idea out. I got in but about a week later than I hoped. There's more to come after today.

And not only have these people exposed hedge funds and more of the media (and discord), theyre exposing some of these trading sites that are in bed with the suits.

The subreddit has doubled in size in a week, a very small portion of that are bots trying to catch what might be the next hot stock and prevent this again.

Basically enough people put in money to bring up the value of this undervalued stock to go against hedgfunds betting on a dip. Now class action lawsuits are underway against robinhood and other trading sites that helped manipulate the market by blocking purchase of these shares, which would hurt hedge funds more than it already has. People should be going to prison for this.

I watch various vids of timcast, anthony brian Locan, and many others, neither are stock guys but they've covered the basics of what's happening here.

 

[joseephuss]

I've not deep dived into it. I heard that they weren't selling the stocks. They just keep holding or buying more, which keeps the stock inflated. If they sold they would make some money, but their goal wasn't to make a profit. I have no idea if that is true and if it were accurate how did they convince so many people to go along with the plan. I've always thought the stock market had way too much influence on things for something that comes across as a bunch of smoke and mirrors.

 

[BigStar]

Wsb has not been deleted. But we have seen consistently in msm knowingly lying and attaching radical labels (wow where have we seen this before for the last 4 years) to these groups to cover for the right guys in suits. Theres tons of videos on youtube that explain whats happening, even if theyre not stock guys they get the general idea out. I got in but about a week later than I hoped. There's more to come after today.

And not only have these people exposed hedge funds and more of the media (and discord), theyre exposing some of these trading sites that are in bed with the suits.

The subreddit has doubled in size in a week, a very small portion of that are bots trying to catch what might be the next hot stock and prevent this again.

Basically enough people put in money to bring up the value of this undervalued stock to go against hedgfunds betting on a dip. Now class action lawsuits are underway against robinhood and other trading sites that helped manipulate the market by blocking purchase of these shares, which would hurt hedge funds more than it already has. People should be going to prison for this.

I watch various vids of timcast, anthony brian Locan, and many others, neither are stock guys but they've covered the basics of what's happening here.

Tks for this, now it does make more sense. They were dancing around how the forum pooled their resources, "we're all going on robinhood to buy gamestop stock to inflate the stock" was step 1 and is kind of what I assumed but it was hard to gauge as an outsider.

 

[CalPolyTechnique]

“Short selling is a fairly simple concept—an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender. Short sellers are betting that the stock they sell will drop in price. ... The difference between the sell price and the buy price is the profit.”

The hedge funds borrow stock in huge volumes betting that the stock’s price will tank in price which results in big profit for them. What WSB has done is caught these hedge funds with their pants down and collectively as individual investors purchased enough volume to inflate the stock price.

Now here’s the interesting part....the more the stock price increases, the more money the hedge funds lose and then owe. The hedge funds have to purchase the stock at inflated prices to stem their losses, but that in turn exacerbates the stock price even more (i.e. because the stock is in demand) and it becomes a recursive loop.

 

[BigStar]

“Short selling is a fairly simple concept—an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender. Short sellers are betting that the stock they sell will drop in price. ... The difference between the sell price and the buy price is the profit.”

The hedge funds borrow stock in huge volumes betting that the stock’s price will tank in price which results in big profit for them. What WSB has done is caught these hedge funds with their pants down and collectively as individual investors purchased enough volume to inflate the stock price.

Now here’s the interesting part....the more the stock price increases, the more money the hedge funds lose and then owe. The hedge funds have to purchase the stock at inflated prices to stem their losses, but that in turn exacerbates the stock price even more (i.e. because the stock is in demand) and it becomes a recursive loop.

So this will only get worse before it gets better...damn these forum posters did pull the rug from that game. I didn't know (well anything lol) but esp that last aspect of having to purchase the stocks at these current inflated prices to stem their losses, but are also simultaneously increasing the value in doing so. I guess if you can create it, you can burn it.

 

[InTheZone]

“Short selling is a fairly simple concept—an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender. Short sellers are betting that the stock they sell will drop in price. ... The difference between the sell price and the buy price is the profit.”

The hedge funds borrow stock in huge volumes betting that the stock’s price will tank in price which results in big profit for them. What WSB has done is caught these hedge funds with their pants down and collectively as individual investors purchased enough volume to inflate the stock price.

Now here’s the interesting part....the more the stock price increases, the more money the hedge funds lose and then owe. The hedge funds have to purchase the stock at inflated prices to stem their losses, but that in turn exacerbates the stock price even more (i.e. because the stock is in demand) and it becomes a recursive loop.

It's crazy how much motivation and momentum has built up to keep this going. The longer people hold the bigger this becomes

 

[jterrell]

Saw what they did to the hedge funds betting against Gamestop. How did they actually manipulate the system so the price went back up wo getting too into it? That's the one aspect of the story the media glosses over, that it was done by this subreddit group---but how? Us interested parties would love to know how

They detail how hedge funds are losing money and how they are reaping what they have sown, but don't really tell you how the redditors were able to get that price back up- a lot of small purchases combined as one? Probably don't want a repeat so are not relaying what happened word for word. I heard they deleted that subreddit already as well.

Exactly that.
They used widespread word of mouth and got a lot of people to jump on board.
It's all totally legal.

subreddit is still up and active: https://www.reddit.com/r/wallstreetbets/comments/l7ptxi/daily_discussion_thread_for_january_29_2021/


These folks are long time traders that lost jobs/incomes in 2008 when Hedge funds got rich and banks got bailed out.
So they are targeting large short positions like AMC and GME.
It's intentional and meant to stop the vulturing of dying companies.

 

[CalPolyTechnique]

Lol, GameStop’s (GME) 52 week range is $2.57 - $483.

 

[InTheZone]

Lol, GameStop’s (GME) 52 week range is $2.57 - $483.

Wait until end of today and/or sometime in the next couple of weeks

 

[BigStar]

Exactly that.
They used widespread word of mouth and got a lot of people to jump on board.
It's all totally legal.

subreddit is still up and active: https://www.reddit.com/r/wallstreetbets/comments/l7ptxi/daily_discussion_thread_for_january_29_2021/


These folks are long time traders that lost jobs/incomes in 2008 when Hedge funds got rich and banks got bailed out.
So they are targeting large short positions like AMC and GME.
It's intentional and meant to stop the vulturing of dying companies.

Very cool how this unraveled must say and appreciate you guys explaining just how it went down. Wonder when the movie will come out (seriously, Jonah Hill is probably already fielding calls lol)...

 

[nightrain]

Just goes to show how the stock market provides opportunities as one of the biggest cons going. It's quite easy for big movers with access to media and a trading public (Kramer) to manipulate shares. Hedge funds quickly move $billions creating momentum by attracting the chart reading day traders to follow suit. Pump and dump is alive and well. Remember the dot com boom/bust? I see the EV industry going the same way.

 

[nobody]

Good! I hope these hedge funds lose billions for doing that shady but legal practice.

 

[SlammedZero]

This has evolved into class warfare and a full on market rebellion.

 

[Aviano90]

There will be a movie about this one day.

 

[Denim Chicken]

There will be a movie about this one day.

 

[Runwildboys]

What or who is ‘WallStreetBets’?

https://finance.yahoo.com/news/what...-that-is-pummeling-wall-street-162734056.html

WallStreetBets is actually “r/wallstreetbets” and it’s a forum or “subreddit” on the popular website Reddit, which is a social platform and discussion group that also rates web content.

Essentially, it’s a group of people who enjoy talking about investing and often, speculative investing. Given that it’s on Reddit, it is accompanied by traditional Reddit-house style, which often includes profanity, irony, and a tremendous dose of memes.

Daily Discussion thread: https://www.reddit.com/r/wallstreetbets/comments/l7ptxi/daily_discussion_thread_for_january_29_2021/

---------------
Why care???
Because investing is mostly riding hype and there has been no greater hype than this since the Dotcom days. Lotsa nerds with laptops and a thousand bucks got rich back then.
Quite possible it happens again if they focus on real gains.
AND because it's quite lesson they are teaching Wall Street about investing heavily in companies demise for profit. Hedge funds bet millions on some poor company failing as they see it dive then provide fire to watch it burn as they make money. This millennial driven movement is propping up those companies and costing those same Hedge funds dearly.


Not sure anyone cares but I am currently investing this side project (i.e. not 401K or real retirement accounts but just entertainment money) in:
$DOGE
$NOK
$BB

I imagine it's a good idea to lurk for a few weeks and figure out which memes and such are sarcasm, before considering using it as investment advice.

 

[Reality]

The irony of this is that the large financial firms, investors and brokers were likely looking forward to "retail" investors playing the stock market like casino tables making them easy targets.

All of the big investors get the same high priced reports and data and they all follow the same trends, strategies, etc. so they were likely thinking that "retail" idiots (everyone not them) would be spontaneous and random investing on whims based on publicly available news and reports.

What they did not count on is the retail investors joining together and picking single targets to focus on nor did they expect them to seize on shorted stocks in particular.

While I would not jump on board an already-well-in-progress ride like GME now personally, you have to admire the people who started this movement and made the rich people's system work for them

 

[triplets_93]

Barstool Sports founder and President Dave Portnoy weighs in on the GameStop stock price stock surge and how Robinhood and Wall Street have reacted to the short squeeze.

Dave believes that Robinhood acted criminally when they stopped/restricted GME buying.