WallStreetBets investment nerds

[triplets_93]

 

[Corso]

There will be a movie about this one day.

I find this fascinating.

 

[cowboyec]

it would seem the wall street elites have more of a problem with outsider trading...instead of insider trading.
this rigged system has been tilted against mainstreet for far too long.

 

[DFWJC]

“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.

This.

Finding stocks that have a huge short interest, then creating enough buy volume to drive up the price and make sellers have to cover their positions.
Panic sets in and a “short squeeze” can occur....like with GME

If the buyers can be disciplined enough and work in unison, they can really punish the “shorts”
Easier said than done though.

 

[DFWJC]

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.

He makes a lot of good points.
But in they would have to look at the user agreement that investors signed to use Robinhood.
The fine print may say they can do just what they did.....which stinks

 

[kskboys]

“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.

Nicely done.

Basically, these hedge funds ruin companies by driving their value low.

To add, the margin is due, which means the difference in price. Since these funds went much higher, billions is now owed by the hedge funds. They are being forced to sell off other quality stocks to pay for these huge margins.

Cal, you know a lot more than I do, please correct or clarify this if I have it wrong. I'm trying to get a handle on what's happening myself, and appreciate your explanations.

 

[Melonfeud]

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.

*The sub-reddittors started a stock buying frenZy&kept that stock buying pedal to the floorboard till "they" stopped online purchases of shares, tho, "their" more than happy to allow you to sell the stock thru those apps*

 

[Melonfeud]

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.

* Yeah, the 'timcast/pool' dude is pretty pumped on this

 

[Melonfeud]

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.

I saw where a 10 y.o. kid had already sold off his GameStop stock shares to the tune of something like $3,200 (+)

 

[kskboys]

*The sub-reddittors started a stock buying frenZy&kept that stock buying pedal to the floorboard till "they" stopped online purchases of shares, tho, "their" more than happy to allow you to sell the stock thru those apps*

Their bottom line is not to sell, it's to keep these stocks to keep driving the prices up. Basically, a margin buy is that you agree to buy the stock in the future. So, when you bet that it's going to go down, you agree to buy. Problem is, when these hedge funds bet that a company is going down, that alone drives the price down.

What Readdit did was drive the price up, so these hedge funders had to pay the difference in what they bet on and what the actual price is. They're telling people not to sell so the price keeps going up. It's really not about their apps, though that is a good guess.

 

[triplets_93]

The Discord for the reddit sub WSB can't accept any new members right now as they've reached their 500,000 membership max for a Discord server.

 

[triplets_93]

The GameStop Saga Is Already Getting the Hollywood Treatment

Brought to you by the Winklevoss twins, and the writer whose book inspired The Social Network.

https://deadline.com/2021/01/mgm-ben-mezrichs-the-antisocial-network-wall-street-1234684378/

 

[CyberB0b]

HODL!!!

 

[Montanalo]

“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.

Imagine how relatively easy it is for a hedge fund to sow disinformation about a short stock to drive the price down.

It sure what the long-term implications are, but good on WSB (and my insignificant little profit).

 

[Reality]

Imagine how relatively easy it is for a hedge fund to sow disinformation about a short stock to drive the price down.

It sure what the long-term implications are, but good on WSB (and my insignificant little profit).

Right now they are likely manipulating the price by selling low to each other while the bulk of the WSB people are holding their shares.