|OT| /r/wallstreetbets

Mor

Me llamo Willy y no hice la mili, pero vendo Chili
Sep 7, 2018
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The way I see it is that years are like TV seasons, 2020 season was so crazy that showrunners needed something big and fresh to start the 2021 season and became with a simple idea "why don't we make a YOLO investment and transform that into a class revolution like movement inside the stock market?" and IT WAS A SUCCESS.

Seriously, it's HILARIOUS, how the WS fellas came out CRYING because a subreddit basically killed one of them by doing exactly the same thing they all do every single day, not only that but how the timing was perfect to take down those communities, let's be honest, the complains were true but c'mon, RIGHT NOW? IN THIS EXACT MOMENT? :evilblob:

In any case, it's amazing how they all came out asking for regulations and efforts to manipulate the market in order to stay alone and not letting anyone outside their circle in, absolutely AMAZING.

Liberalism is cool until it is not, then protectionism is the cool new thing until it is no longer necessary. 2021 out of a good start.
 

Wok

Wok
Oct 30, 2018
4,923
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France
I am a bit sceptical about this. It is a good click-bait, but I am unsure it goes much deeper than that.

First, hedge funds are not just about speculation. Their job is about hedging the risk, so if they are not too dumb, then they can adapt to this kind of hive behaviour. I mean, it sounds much harder to hedge against noisy behaviour than against clear trends discussed on a public forum.

Second, if we focus on speculators: as much as one can speculate about the decrease of a stock value and "short" it, one can speculate about the increase, and profit will be made either way. For instance, one of the Redditors mentioned earning 10 million dollars thanks to the subreddit behaviour. Literally betting 1 million that the Redditors will follow through, and earning 11 million... This kind of subreddit impact is a dream... for speculators too.


The only good thing is that it could dissuade people from "short selling", which is a good thing a priori because short selling is a weird and aggressive stance.
 
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EdwardTivrusky

Good Morning, Weather Hackers!
Dec 8, 2018
7,277
12,381
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A lot of the Retailer Trading Apps are now stopping trading on certain stocks. I think the big boys are leaning on them behind the scenes to stop the plebs ruining their rigged game.
 

NarohDethan

There was a fish in the percolator!
Apr 6, 2019
8,942
24,801
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The invisible hand more like the visible middle finger

- Someone I saw on the internet
 
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Swenhir

Spaceships!
Apr 18, 2019
3,534
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So Robinhood, a broker if I understand this right, just blocked buying GME. They are owned by a parent company who stands to lose billions with this.

"Free market".

I can't help bask in the shadenfreude of seeing WS be eaten alive at its own game.
 

Swenhir

Spaceships!
Apr 18, 2019
3,534
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The whole thing is galling. I hope the stock soars to 5k as they originally intended, so far it's back to "only" 250+.

What an absolutely disgusting move.
 

Swenhir

Spaceships!
Apr 18, 2019
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I'm pretty happy to see that despite RH's illegal shenaningans, the stock held. Monday is going to be a fun time for everyone.
 
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crimsonheadGCN

MetaMember
Jan 20, 2019
2,924
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40
Clifton, New Jersey
www.resetera.com

Last week, a motley mass of shitposters, gambling enthusiasts, and disaffected Zoomers — united by hate for Wall Street and love of chicken tenders — beat a multibillion-dollar hedge fund at its own game. Through their collective intelligence and audacity, users of the Reddit forum WallStreetBets executed a sophisticated “short squeeze” that took money away from some billionaire speculators, gave it to some badly indebted workers, and made a mockery of neoliberal capitalism’s legitimizing myths. Unfortunately, right when these working-class retail investors had Wall Street’s titans on the run, the plutocracy’s visible hand appeared to reach down and thwart them: Robinhood, a trading app popular with young recreational investors, suddenly barred its users from buying GameStop shares, thereby relieving pressure on the hedge-fund shorts.

That is one way of recounting the GameStop rally, anyway.

Here is another: A group of small-time speculators — including some finance-industry professionals orchestrated a pump-and-dump scheme that involved convincing a lot of financially inexpert (and/or politically disaffected) people that they could stick it to Wall Street’s largest money managers by … bidding up the price of an equity that is owned by Wall Street’s largest money managers. This generated enough momentum to trigger a “short squeeze,” and the price of GameStop shares shot to the moon. Wall-to-wall media coverage ensued. Inexperienced investors bought the hype, and began piling into what now resembled a Ponzi scheme: When the bubble finally burst, those who bought in early would have a chance to cash out before the stock fell beneath their break-even price; those who bought late would have little warning before the “dump” wiped them out. By late last week, so many people were buying GameStop shares over gamified phone apps that regulations aimed at ensuring the stability of financial markets kicked into gear. The stock market’s central clearing hub calculated that it faced a high risk in facilitating more GME buys, and demanded billions in collateral from brokerages ordering such trades. Lacking the funds necessary to meet this demand, Robinhood was compelled to restrict GameStop buying on its platform while it sought an infusion of liquidity. That pause hastened the inevitable end of the GameStop rally, which ultimately achieved little beyond popularizing participation in stock trading (a development that will enrich Wall Street at the expense of working-class people with gambling problems).
 

Swenhir

Spaceships!
Apr 18, 2019
3,534
7,621
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That second paragraph reads like fancy spin, honestly. I didn't see the DTC kick in in 2008 the way it did to save Citadel's ass from the fire. It also fails to even acknowledge the HFT-driven ladder attacks that artificially drove the stock price down, with everyone being unable to buy. If this isn't illegal market manipulation, I don't know what is.