Stock market tips and experiences

[TheFanatic]

something to consider as well, with a ton of hype driven investing from many newcomers. Pay day is usually Fridays for many companies. we may see a boom friday night after work hours and people get their checks cashed, at least in doge.

The problem with any of the crypto is they're relying on existing customers because verification takes days to weeks for new people coming in and due to recent demand could take even longer. The spikes we're seeing is people who were already in which might explain the calm. Give it a week or two and there very well just may be another spike as accounts get approved. I'm just hoping I can ride that wave

[NickyC]

The crooks at RH are back at it again. I guess their hedgie butt buddies couldn’t close all their short positions.

https://www.zerohedge.com/markets/ro...-just-2-shares

[bimmer pleaser V2]

Originally Posted by Noneya

Coordinated trading to manipulate the price of stocks is price manipulation.

If you think being a cog in a large wheel is what protects you - that may be true, but brokerages don't have that luxury, and if this continues I expect every single brokerage to block these manipulating trades. How exactly they will decide what's a manipulating trade is a hard problem and I don't envy their position, but in the short term blocking everyone works.

let's not get into who's manipulating, trading with insider knowledge, cheating, etc.... To be clear, Citadel owns Melvin which is getting killed because they went nuts shorting GME. Citadel also pays a lot of money to Robinhood (I believe 40% or their revenue) in exchange for Robinhood data on investors. Connect the dots. Are you implying Hedge Fund Managers have right to lay down the law and disable others' purchasing option if they simply "sense coordinated effort" against them?

[TboneS54]

RH limiting buys as the price falls. Makes sense.

[Noneya]

Originally Posted by bimmer pleaser V2

let's not get into who's manipulating, trading with insider knowledge, cheating, etc.... To be clear, Citadel owns Melvin which is getting killed because they went nuts shorting GME. Citadel also pays a lot of money to Robinhood (I believe 40% or their revenue) in exchange for Robinhood data on investors. Connect the dots. Are you implying Hedge Fund Managers have right to lay down the law and disable others' purchasing option if they simply "sense coordinated effort" against them?

To be clear - you're making stuff up. The reality is: Citadel doesn't own Melvin - it bought non-controlling revenue shares that expire, Citadel Securities (i.e. not the hedge fund) pays Robinhood, and regarding that last sentence - no I don't think they have such a right, nor is there any evidence that they did such a thing.

[vreihen16]

Originally Posted by TboneS54

RH limiting buys as the price falls. Makes sense.

Not for those who wanted to buy the dip!

Glad that I use a "boomer" brokerage, and not the Farcebook of stocks.....

[TboneS54]

I was talking about RH. Limited to 2 shares, then 1. I have Schwab, personally.

[TheFanatic]

https://www.yahoo.com/finance/news/w...172539318.html

That’s when the three online brokerages stepped in to put the brakes on the buying. For Webull, this was not a nanny move to protect investors from buying at the top and then getting mad nor was it a move to save the hedge funds that were shorting GameStop, Denier said.

“Our clearing firm simply cannot afford the cost to settle those trades,” he said.

If you cant afford your own decisions then you deserve to FAIL. To bad the little man isnt given the same options to spend and invest recklessly and get an oopsie like they do

what a load of crap

[NorCalAthlete]

Originally Posted by NorCalAthlete

Realistic ish - $1k.

That being said I have limit sell thresholds at $2k/$5k/$10k/$15k. Some people are speculating it could spike as high as $30k if it were to match VW’s “temporarily most expensive company in the world” status.

https://www.reddit.com/r/wallstreetb...eb2x&context=3

TL;DR : PT GME upgraded to $932.

However, shorts are piling on - and 10 hedge funds have gone down so far according to an AMA :
Dan Pipitone, Co-Founder of TradeZero. Fought our Clearing Firm to Get $GME Approved, WE ARE LIVE. Ask about Dead Hedgies, Other Trading Platforms Lying - AMA!

Then there’s this:

It’s time for a government bailout of GME shareholders at $10,000 per share. This would be roughly equivalent to the $700 billion bank bailout in 08 that was necessary to prevent ‘systemic risk’.

The short positions put on by the hedge funds are posing a systemic risk to the market. Bail out both sides by liquidating the hedge funds, but not the brokers or clearinghouses, but also put a buy order in for $10k per share to allow GME shareholders to exit. Isn’t $700 billion better than a financial meltdown? Just like last time you can ‘put rules in place to make sure this won’t happen again’

In 2008 the banks held risky assets and got bailed out because they said the innocent normal people would be hurt even more if you didn’t bail them out, so the government did it.

We posed a risk to the liquidity of the hedge funds, brokers, and clearinghouses yesterday. By bankrupting them it would probably cause a temporary stock market crash as they liquidate their positions.

Are we not now in the same position as the banks were in 2008? Buy us out of our positions for $700 billion to save the rest of the market and the normal people right?

Wishful thinking? Perhaps...but I bet there was a whole lot of similar attitude before we got "too big to fail" logic and bailout.

[Cyberdemon]

For everyone who had been posting "you'll leave these companies bankrupt either way"

https://www.polygon.com/movies/2021/...ebt-conversion

Nice job internet I'm going to spend some extra shekels on a nice bottle of wine tonight.

[TboneS54]

e-tards strong together

[TheFanatic]

Originally Posted by NorCalAthlete

[
Wishful thinking? Perhaps...but I bet there was a whole lot of similar attitude before we got "too big to fail" logic and bailout.

That would be a pretty extreme scenario

[floridaorange]

Originally Posted by TheFanatic

something to consider as well, with a ton of hype driven investing from many newcomers. Pay day is usually Fridays for many companies. we may see a boom friday night after work hours and people get their checks cashed, at least in doge.

The problem with any of the crypto is they're relying on existing customers because verification takes days to weeks for new people coming in and due to recent demand could take even longer. The spikes we're seeing is people who were already in which might explain the calm. Give it a week or two and there very well just may be another spike as accounts get approved. I'm just hoping I can ride that wave

Originally Posted by TheFanatic

something to consider as well, with a ton of hype driven investing from many newcomers. Pay day is usually Fridays for many companies. we may see a boom friday night after work hours and people get their checks cashed, at least in doge.

The problem with any of the crypto is they're relying on existing customers because verification takes days to weeks for new people coming in and due to recent demand could take even longer. The spikes we're seeing is people who were already in which might explain the calm. Give it a week or two and there very well just may be another spike as accounts get approved. I'm just hoping I can ride that wave

Traders do not like to keep positions open over the weekend. ... Not all stocks but Friday's are known as sell off days for traders as they're trying to minimize bankroll loss by pulling out and holding over the weekend.

[floridaorange]

Originally Posted by NickyC

The crooks at RH are back at it again. I guess their hedgie butt buddies couldn't close all their short positions.

https://www.zerohedge.com/markets/ro...-just-2-shares

Originally Posted by TheFanatic

something to consider as well, with a ton of hype driven investing from many newcomers. Pay day is usually Fridays for many companies. we may see a boom friday night after work hours and people get their checks cashed, at least in doge.

The problem with any of the crypto is they're relying on existing customers because verification takes days to weeks for new people coming in and due to recent demand could take even longer. The spikes we're seeing is people who were already in which might explain the calm. Give it a week or two and there very well just may be another spike as accounts get approved. I'm just hoping I can ride that wave

Originally Posted by NickyC

The crooks at RH are back at it again. I guess their hedgie butt buddies couldn't close all their short positions.

https://www.zerohedge.com/markets/ro...-just-2-shares

The stock i'm in the longest made the list....trxc. Curious of potential impact.

[bimmer pleaser V2]

This is the dude who started it all, I believe he started investing in GME back in 2019, and at the beginning it was not about squeezing out the shorters, he just liked the stocks.

His numbers as of Friday, still has not cashed in.

[ptper]

Like I said I'm a passive investor, but this story is just too fascinating. I suspect there is some truth in the headlines I've been seeing on social timelines, but I think how the events unfolded (are unfolding) may be more of what this guy posted earlier this week:

A Little GameStop/Robinhood Perspective: A number of hedge funds got the $GME trade very wrong on a risk/reward basis(I know the feeling), and attracted the interest of smart retail investors. They spread the word via social media, and the stock skyrocketed.

(2) The affected hedge funds were run over, but few noticed that other big hedge funds made as much, or more, than the retail investors. Ok, some lost big, some won big. Happens all the time. Then things got weird...

(3) As the stock went higher and higher, retail investors began to believe that the hedge funds that were short could never cover because the short interest was 140% of the shares outstanding. Yet the stock was trading more than 100% of its shares outstanding EVERY DAY.

(4) As this story circulated, $GME stock went parabolic and other stocks with high short interest also went up in sympathy. But so many retail investors began to buy these stocks on margin, that the online brokers began having regulatory/clearinghouse capital issues today.

(4) As this story circulated, $GME stock went parabolic and other stocks with high short interest also went up in sympathy. But so many retail investors began to buy these stocks on margin, that the online brokers began having regulatory/clearinghouse capital issues today.

(5) These brokerages(but not others) began to restrict trading in the volatile stocks per their customer agreements, so as to not violate their regulatory capital limits...and all hell broke loose.

(6) Retail traders were outraged that they were not allowed to buy more of a stock that was up 20X over the past three months. That somehow the Wall St “Elites” were preventing them from profiting even more, so as to protect hedge funds(many of whom were long) and short-sellers.

(7) And as a result, politicians joined the fray, decrying the regulatory system(!) that they would normally defend, so as to curry favor with the aggrieved investor class that had already made a killing in a very smart trade.

(8) A regulatory system that did exactly what it should have done, for a set of undercapitalized brokerages, so as to prevent their collapse(we’ll see what happens) in an extreme set of market circumstances.

(9) So just what is all the outrage about? The shorts/HF’s lost, retail (and HF’s!) won, and we all learned about the risks of the no cost online brokerage model. But I am hard-pressed to see why making a lot of $ in a heavily-shorted set of stocks is a national crisis.

Diogenes
@WallStCynic

[2000cs]

@ptper I saw a similar write-up but it was copyrighted so I can’t post it here (nor a link, only for subscribers). They also noted the lack of systemic risk in this set of trades as even with the run up the market cap of GME is quite small relative to total market and market liquidity. In other words, while a few hedge funds might tank by being run over in this trade, there should be no “contagion”. Thus the broader market over-reacted this week.

[P1]

Nice article in the WSJ about Keith Gill this morning. Seems like a humble guy. Plus I like his ideas on what he'll do with some of his gains.

[zx10guy]

Originally Posted by ptper

Like I said I'm a passive investor, but this story is just too fascinating. I suspect there is some truth in the headlines I've been seeing on social timelines, but I think how the events unfolded (are unfolding) may be more of what this guy posted earlier this week:

A Little GameStop/Robinhood Perspective: A number of hedge funds got the $GME trade very wrong on a risk/reward basis(I know the feeling), and attracted the interest of smart retail investors. They spread the word via social media, and the stock skyrocketed.

(2) The affected hedge funds were run over, but few noticed that other big hedge funds made as much, or more, than the retail investors. Ok, some lost big, some won big. Happens all the time. Then things got weird...

(3) As the stock went higher and higher, retail investors began to believe that the hedge funds that were short could never cover because the short interest was 140% of the shares outstanding. Yet the stock was trading more than 100% of its shares outstanding EVERY DAY.

(4) As this story circulated, $GME stock went parabolic and other stocks with high short interest also went up in sympathy. But so many retail investors began to buy these stocks on margin, that the online brokers began having regulatory/clearinghouse capital issues today.

(4) As this story circulated, $GME stock went parabolic and other stocks with high short interest also went up in sympathy. But so many retail investors began to buy these stocks on margin, that the online brokers began having regulatory/clearinghouse capital issues today.

(5) These brokerages(but not others) began to restrict trading in the volatile stocks per their customer agreements, so as to not violate their regulatory capital limits...and all hell broke loose.

(6) Retail traders were outraged that they were not allowed to buy more of a stock that was up 20X over the past three months. That somehow the Wall St “Elites” were preventing them from profiting even more, so as to protect hedge funds(many of whom were long) and short-sellers.

(7) And as a result, politicians joined the fray, decrying the regulatory system(!) that they would normally defend, so as to curry favor with the aggrieved investor class that had already made a killing in a very smart trade.

(8) A regulatory system that did exactly what it should have done, for a set of undercapitalized brokerages, so as to prevent their collapse(we’ll see what happens) in an extreme set of market circumstances.

(9) So just what is all the outrage about? The shorts/HF’s lost, retail (and HF’s!) won, and we all learned about the risks of the no cost online brokerage model. But I am hard-pressed to see why making a lot of $ in a heavily-shorted set of stocks is a national crisis.

Diogenes
@WallStCynic

I'm watching this all with fascination too. This is even better than any movie Hollywood could dream up.

But on your bullet point #5 and 6. I sort of understand some of the reasoning with restricting GME stock. But it was only one way as you could sell but couldn't buy. If there was this crisis to cover the trades on this stock by the brokerages and clearing houses, why wasn't the stock totally frozen? No buys and no sells? The argument by the retail investors is that this move was done to help the hedge funds that are in trouble.

[smyles]

Originally Posted by ptper

(3) As the stock went higher and higher, retail investors began to believe that the hedge funds that were short could never cover because the short interest was 140% of the shares outstanding. Yet the stock was trading more than 100% of its shares outstanding EVERY DAY.
...

Outstanding shares and daily volume are two different and rather independent numbers, no?

[floridaorange]

personally i'm frustrated by being up $2k in crypto but the sale couldn't go through so i lost the profit (doge coin). that was annoying - not a ton of money but still

[M FUELED]

I’m upset because I was up $14,844.35 on the doggie crypto and I am now only profiting $4,622 because I decided to hold with all the hype about everyone holding and making it go up higher but I guess everyone ended wussing out and selling Sell outs. Anyway, I still plan on keeping my shares as I have hope that people will buy and hold again next week.

Originally Posted by floridaorange

personally i'm frustrated by being up $2k in crypto but the sale couldn't go through so i lost the profit (doge coin). that was annoying - not a ton of money but still