Reddit/Gamestop vs.Wall Street

Melanchthon

Melanchthon wrote: »

Is it a sign of the apocalypse that we have this collection of individuals agreeing on a topic :eek:

RobinHood has united America!

strandroad

RobinHood protecting the rich, the jokes write themselves. The fastest brand shark jump ever?

Donald Trump

Thematics wrote: »

The below video gives a great explanation of what's happening and how this will end. Price discovery is important in capital markets for the greater good of the economy, there is nothing wrong with shorting a stock and there is nothing wrong with hedge funds trying to make a profit for their investors, that's their job.

In theory, and under legitimate reasons, of course yes.


But big companies who have the cash can move the market by the sheer size of the position they are taking. Under that scenario, the price can move away from a fair market price and the line between free market and manipulation become blurred.

Thematics

Thematics wrote: »

The below video gives a great explanation of what's happening and how this will end. Price discovery is important in capital markets for the greater good of the economy, there is nothing wrong with shorting a stock and there is nothing wrong with hedge funds trying to make a profit for their investors, that's their job.

Price discovery my arse. Pseudo scientific claptrap from the pseudo science of economics. Economists largely believe that stocks can't be over-valued ever, despite their own lying eyes. Lets not take this nonsense seriously. If they could "price discover" we wouldn't have to bail them out.

Thematics wrote: »

Yes markets can be manipulated in numerous ways, and there are laws against that. But there is nothing at all wrong with shorting a stock in itself. It's healthy for the economy such that overvalued companies are identified so there price can adjust accordingly.

It looks like they illegally naked shorted here, in any case, if the claim that there were more shorts than underlying stocks is true.

Montage of Feck

Good to see the hedge funds getting kicked in the balls, an utter blight on humanity they are.

Anyway the question isn't about short selling in general but how the short sellers threw a hissy fit when they were squeezed and demanded either that the stock market intervene, or in some fashion put the scares on RobinHood app.

Jeff2

Drumpot wrote: »

I would have made a few quid had Revolut trading platform not conveniently crash. Kept pending and cancelling my request to cash out.

I don't know why but in the app it was showing as a lose while it's going up.

In red as % down.

Price discovery. :rolleyes: Gonna set fire to the gaff next door, find out what it's really worth.

Darc19

Funny how the biggest winner was an investment fund that sold all their holdings of GameStop to the eejits that bought into the crazy idea.

They made hundreds of millions of dollars.

Melanchthon

[Deleted User] wrote: »

Anyway the question isn't about short selling in general but how the short sellers threw a hissy fit when they were squeezed and demanded either that the stock market intervene, or in some fashion put the scares on RobinHood app.

There's also talk of entities linked with Robinhood market manipulating. E.g contacting Robinhood to stop them allowing buying which might be literally unprecedented (as I understand it, stopping trade due to selling is common not stopping people buying) using the subsequent drop after it stopped buying through its app.

Thematics

Thematics wrote: »

How are they a blight on humanity?

What do they offer humanity?

inforfun

Next in line for the Nobel peace price then.

Thematics

Thematics wrote: »

They provide services for their clients, they add to the efficiency of capital markets. They provide jobs and help generate wealth. They provide added diversication and return enhancement to long term investors such as University Endowment Funds, helping them meet their financial needs which helps educate people.

And what do these clients actually do with this money for the benefit of humanity?

What % of money/stocks sold through hedge funds every year makes it way into humanitarian relief/help projects??


What wealth and jobs are created in betting on 140% of the stock that exist in a business,and how deos this wealth help humanity?

AmberGold

Insiders! It’s the comments re Melvin / Citadel I refer to

https://twitter.com/madlucky11/status/1354860019766894592?s=21

Were the reddit sub and discord server also shutdown or no? Questions to be asked there to if so

Thematics

Thematics wrote: »

The clients do with their money the same as anyone does with their money. Invest it, save it, spend it or give it to charity. Each of which is good for the economy.

Do you have a problem with all businesses that earb profits? Cafes, Airlines, Restaurants?

Your posts thus far reek of skin in the game.

Melanchthon

Deleted User wrote: »

Were the reddit sub and discord server also shutdown or no? Questions to be asked there to if so

I think they shut for an hour, Sub definitely open now, no idea about the discord, not a big follower of it

Thematics

Thematics wrote: »

I simply understand the industry better than most. A lot of people are easily led sheep that just hear the term hedge fund and a negative association hits their brain. They don't actually engage their brain and question their understanding.

Point proven.

AbusesToilets

Thematics wrote: »

I simply understand the industry better than most. A lot of people are easily led sheep that just hear the term hedge fund and a negative association hits their brain. They don't actually engage their brain and question their understanding.

Many industries and businesses provide jobs, that doesn't make them intrinsically beneficial to society. Gamblers on the stock market are akin to ticks, existing as parasites, feeding off of others. They come with the same attendent maladies on the populace.

Donald Trump

Hedge funds are in theory a legitimate market player. As the other poster pointed out they do increase information in the market and can also increase efficiency by ironing out arbitrages.

There are speculative hedge funds which take on a lot of risk with other people's money.

The name itself points to the origin of the vehicle class - which is in fact the opposite of risky speculation!

AbusesToilets

Thematics wrote: »

Define what's beneficial to society then.

In a business context those who provide a good or service to others. As opposed to speculators, who simply bet on the work of others, or outright manipulate finance to their benefit, regardless of the effect on actual workers

Donald Trump

Deleted User wrote: »

Price discovery my arse. Pseudo scientific claptrap from the pseudo science of economics. Economists largely believe that stocks can't be over-valued ever, despite their own lying eyes. Lets not take this nonsense seriously. If they could "price discover" we wouldn't have to bail them out.

Price discovery is an extremely important concept in financial markets. Particularly for accounting and regulatory purposes.


It is important for investors too. Nobody will buy what you own when you want to sell it if they don't have a good idea of a fair market value.......well they will buy it, but give you much less for it.

Donald Trump

Thematics wrote: »

Investing people's wealth is valuable for society.

Capital mobilization.

Jeff2

Gamestop is through the roof now.

If I was still in the game I'd have made a fortune.

Edit : it made euro news.

Donald Trump

Jeff2 wrote: »

Gamestop is through the roof now.

If I was still in the game I'd have made a fortune.

I wouldn't too much store in after-hours marks when it has been so volatile during the day anyway

Jeff2

Donald Trump wrote: »

I wouldn't too much store in after-hours marks when it has been so volatile during the day anyway

That's how money is made when it's volatile.

Day trading.

Donald Trump

There are probably plenty of other hedge funds who piled in to this as well when they saw what was going on. Perhaps even the same ones who closed out short positions at a loss and then went long immediately.


They will probably make first move to exit and it will be the little retail investor left with the additional losses.

Donald Trump

Jeff2 wrote: »

That's how money is made when it's volatile.

Day trading.

Volatility is not the part-timers friend.



The price when you wake up in the morning might not be close to what you are seeing in the after hours market now. I'd imagine that volume is fairly low.

Dyr

Bambi wrote: »

How long before the term "hate trading" is being bandied about to try shut this down?

Apparently the answer was no time at all. The WSJ was labelling the subreddit as alt right before editing their article

Fairly clear, that from here on in, anything the establishment wants to take down is going to be called white supremacy or Gamergate or some such guff.

Jeff2

Donald Trump wrote: »

Volatility is not the part-timers friend.



The price when you wake up in the morning might not be close to what you are seeing in the after hours market now. I'd imagine that volume is fairly low.

That's why day trading close out at end of day trading.

Or take a chance.