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Reddit’s profane, greedy traders are shaking up the stock market

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Re: Reddit’s profane, greedy traders are shaking up the stock market

#31

Post by Spellman »

cdiamand wrote: post #25

Hey! I'd like to shamelessly plug my new project here: https://topstonks.com We're writing about this speculative culture emanating from WSB and 4chan in a daily email. We send out a list of the most mentioned stocks, and do a longer form commentary, with quotes from those communities a few times a week. It's just an email now, but we're going to roll out options analysis and a few other goodies in the coming weeks :…

There's already a vehicle to invest on "buzz" actually.

The BUZZ ETF is traded and invests based on how often particular stocks get mentioned in social media and new reporting. I'm sure they're monitoring r/WSB as well.

http://buzzindexes.com/

Disclosure, do not hold or have any affiliation with Buzz Index products. Just heard about it before.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#32

Post by partiallypro »

gruez wrote: post #2

Wait, people actually go to /r/wsb for investment advice? The entire time I thought it was a mix of posting wins/losses along with some memes/humor.

It definitely is mostly memes, but if you're a momentum trader...it's probably not a bad sub to follow for ideas. It can also act as an inverse indicator when everyone starts showing massive gains. I wouldn't be surprised if some hedge funds or algos monitor the sub.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#33

Post by creaghpatr »

safog wrote: post #23

Come on man, there's no where near enough volume there to move anything but the most low volume of stocks. All they trade in is meme stocks like TSLA, NFLX, MSFT, AAPL etc., and a few 100k on calls here or there won't budge the price in the slightest. On top of that, it's not even a P&D group, people there are just trading against each other, you have both bears and bulls and thetas. There's never been a concerted ef…

If they can influence the conversation then they can impact the price movement- the volume comes from institutional investors that get spooked by calls on meme stocks relative to normal stocks, then their algos (which aren't trained to handle meme stock banter) go nuts. That's just my theory though.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#34

Post by cdiamand »

Spellman wrote: post #31
cdiamand wrote: post #25

Hey! I'd like to shamelessly plug my new project here: https://topstonks.com We're writing about this speculative culture emanating from WSB and 4chan in a daily email. We send out a list of the most mentioned stocks, and do a longer form commentary, with quotes from those communities a few times a week. It's just an email now, but we're going to roll out options analysis and a few other goodies in the coming weeks :…

There's already a vehicle to invest on "buzz" actually. The BUZZ ETF is traded and invests based on how often particular stocks get mentioned in social media and new reporting. I'm sure they're monitoring r/WSB as well. http://buzzindexes.com/ Disclosure, do not hold or have any affiliation with Buzz Index products. Just heard about it before.

Cool! We were actually recently talking about how well an ETF that inversed WallstreetBets would do.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#35

Post by alexpotato »

Back in the early 2000's I worked for a company that was was hired (via intermediary law firms) by publicly listed companies to investigate pump and dump schemes on Yahoo message boards (you might call that the "Reddit of the early 2000's").

It involved a lot of web scraping Yahoo with Perl (specifically LWP) and then lots of analysis by humans with some help from automated tools. For example, if you plotted a histogram of each user's posts, you could clearly see when someone was at work (posted between 9am and 5pm with a drop off around noon) and at home (posts between 6pm and 2am with a peak around 10pm).

The analysts would often find a piece of information from a 2 year old post, e.g. 'Go Cubs!', and a one week old post "I just attended my 20 year UofI reunion" and quickly be able to narrow down on who the person might be. Coupled with Lexis Nexis (which was just coming online at the time), we routinely narrowed down individuals to just one possible person.

Given that this was done back in the early 2000's using ancient servers (by today's standards) and basic statistical analysis with a lot of legwork, I would be surprised if there weren't companies also trying to find the people on Reddit today.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#36

Post by mixedbit »

AnotherGoodName wrote: post #29
safog wrote: post #23

Come on man, there's no where near enough volume there to move anything but the most low volume of stocks. All they trade in is meme stocks like TSLA, NFLX, MSFT, AAPL etc., and a few 100k on calls here or there won't budge the price in the slightest. On top of that, it's not even a P&D group, people there are just trading against each other, you have both bears and bulls and thetas. There's never been a concerted ef…

I have a theory that WSB are so bad at trading that they actually do manipulate stocks due to messing up every automated trading platform that assumes there'd be some logic to the trades being made. Someone's just bought a $1000 call option on a stock that's currently $400? Automated trading systems will probably raise alerts on that stock since someone must know something for that to happen. This appeared to happen…

Can they be bad at trading? https://xkcd.com/2270/

Re: Reddit’s profane, greedy traders are shaking up the stock market

#37

Post by nonbirithm »

thih9 wrote: post #6

> You're in private mode. Subscribe to continue reading in private mode. I didn't realise that Bloomberg blocks private mode too. Messages like this assume that tracking is the default and make sure that we keep losing privacy. I really dislike this trend.

Some sites have been getting smart and not doing the paywall logic client side, and will not send the entire article's text over HTTPS which allows archive.is to save it and reader mode to function. I think Longform also did this at some point.

I don't think it's about throwing away privacy for readers using reader mode, it's a matter of wanting to be compensated through the subscription model. Between the two, getting compensated won out.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#38

Post by shiftpgdn »

cdiamand wrote: post #25

Hey! I'd like to shamelessly plug my new project here: https://topstonks.com We're writing about this speculative culture emanating from WSB and 4chan in a daily email. We send out a list of the most mentioned stocks, and do a longer form commentary, with quotes from those communities a few times a week. It's just an email now, but we're going to roll out options analysis and a few other goodies in the coming weeks :…

FYI: Since you're in the US you can drop the double opt in on your news letter. I'd setup your page to feed to an Excel sheet or something and use that to feed into your email sending software.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#39

Post by 6gvONxR4sf7o »

safog wrote: post #23

Come on man, there's no where near enough volume there to move anything but the most low volume of stocks. All they trade in is meme stocks like TSLA, NFLX, MSFT, AAPL etc., and a few 100k on calls here or there won't budge the price in the slightest. On top of that, it's not even a P&D group, people there are just trading against each other, you have both bears and bulls and thetas. There's never been a concerted ef…

FYI for anyone else who didn't know what "bears and bulls and thetas" means (skip the top answer, or better yet come back to it after reading later ones):

https://www.reddit.com/r/wallstreetbets/comments/ef0xhj/eli5...

Re: Reddit’s profane, greedy traders are shaking up the stock market

#40

Post by nabla9 »

safog wrote: post #23

Come on man, there's no where near enough volume there to move anything but the most low volume of stocks. All they trade in is meme stocks like TSLA, NFLX, MSFT, AAPL etc., and a few 100k on calls here or there won't budge the price in the slightest. On top of that, it's not even a P&D group, people there are just trading against each other, you have both bears and bulls and thetas. There's never been a concerted ef…

IMX (TD Ameritrade The Investor Movement Index) tracks retail investors sentiments from real portfolio data.

IMX trails what happens in the markets. Retail investors don't create trends, they follow them off the cliff.

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