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The nihilism of r/wallstreetbets

jeromysonne.com

171–180 of 277 posts

Re: The nihilism of r/wallstreetbets

#171
post #95
post #69

I understand the nihilism. When you start earning vast sums of money very quickly, and see other people do the same, you start getting a sense that money isn’t really worth working all that hard for. I’ve been making about 5k or 6k a week regularly this past year in the stock market with little effort, through stock appreciation and selling options. It definitely makes me feel less motivated to do my job, but the one…

This is certainly part of it too and something I wish I expanded on more. When you can make so much money without really doing much hard work can seem like a suckers game.

It is actually a bit depressing.

Society looks up to people who make a lot of money through hard work, but a person who makes a lot of money with little effort is kind of seen as a lazy douche, only looked up to by people who also want to make fast effortless money (r/wallstreetbets).

But what really crushes me is people who work a lot harder than me and make a lot less money. I dated a younger girl recently who worked hard every week while also finishing her university courses. She prided herself on being a hard worker and assumes I work hard too since I make a lot of money. But the truth is I can make what she makes in a week by selling a couple option contracts while on my phone taking a dump. To me it pretty much feels like she’s a slave. All that youth being wasted chasing small amounts of money.

Of course, I would never want to give up my income stream just to feel better.

Re: The nihilism of r/wallstreetbets

#172

It just doesn't add up to me. If you take Gamestop (GME) today's hot item, it's trading 170M shares back and forth, at say, $70. That's $11B sloshing back and forth. You're telling me 10,000 (if even?) guys sitting at home doing retail trading have $1M each in positions driving this? 100,000 people with $100,000 each, during the day? I think it's quant and algorithmic trading. I would love to hear from an expert thou…

>You're telling me 10,000 (if even?) guys sitting at home doing retail trading have $1M each in positions driving this? 100,000 people with $100,000 each, during the day? Matt Levine wrote about this in his Money Stuff newsletter today. I highly recommend the newsletter. In summary, the options have an amplifying effect on the total volume because of the hedging by market makers. Pair it up with a meme stock, and you…

The higher likelihood is that you’ll lose your $335.

$1816 in profits, from this one trade, while nice, isn’t really a game changer.

The likelihood is that you’ll make increasingly bad bets, and will eventually lose all your principle.

Re: The nihilism of r/wallstreetbets

#173
post #113

"Most of these people are in hopeless debt with no clear path out anyway" I really really think this misreads who is trading on WSB, especially who are making big trades. There was a thread the other day of someone maxing out his credit cards to buy GME, and the comments were full of people calling him an idiot (albeit a lucky one), and imploring others not to do the same. If you read the comments on any big YOLO pos…

Case in point... The reddit user (u/DEEPFUCKINGVALUE) with the largest (publicly proven) gains in the recent GME episode seeded their position with over $750,000. They first showed up on r/WSB in March of 2019 when they first publicized their position.

Re: The nihilism of r/wallstreetbets

#174

Earlier quoted context omitted.

It’s not 11B sloshing. It’s probably 1% of that, if that. Market cap > available shares Available shares > traded shares Traded shares > actual $ involved

What do you mean? Today's traded volume is 170M shares. The price is $80. $13-14B has to change hands to settle that.

Alternatively, 1 stock could be traded back and forth 170 million times if two parties have each have $80 in capital.

Re: The nihilism of r/wallstreetbets

#175
post #94

Earlier quoted context omitted.

>Language like WSB uses is meant to frustrate outsiders and limit posers. This is true, but WSB is also fundamentally nihilistic. 4Chan started as teenage boys from middle class families saying bad things for and fun trolling for fun. "haha lol normies take it seriously" Typical teenage nihilism that is normally not very harmful. Then it gradually escalated into really hurting people and crazy people joining. https:/…

I don't think you can make specific philosophical assertions about a very large group based off a hobby. Just like we can't say that all react developers are minimalists, we can't say all WSBer's are nihilists or anything else. I think you have some very fundamental misunderstandings about 4chan, including who it was composed of and what both their stated and achieved goals were. As a hint, remember that 4chan is a c…

> we can't say all WSBer's are nihilists or anything else

This type of counterargument seems to be very common in the internet.

Can you explain how valid you consider "we can't say all X" argument being in general? How can you make reasonable arguments about group or people so that this argument is not valid.

Re: The nihilism of r/wallstreetbets

#176
post #169

Earlier quoted context omitted.

A coup can't succeed without support from the military, the police or a majority of the population. A few hundred badly organized crazy people can't perform a coup, they can however perform acts of terrorism which is what they did. Crazy people sometimes kills high level politicians, there are many cases like that in history, doesn't mean it was a coup or it was even near succeeding.

Unsuccessful or incompetent coup attempt is still a coup.

I guess I'll be pedantic for a moment. A coup, by definition, is a seizure of power from government. If they are not successful at seizing power, then it was not a coup.

Re: The nihilism of r/wallstreetbets

#177

Earlier quoted context omitted.

I posted a quarter million GME YOLO on WSB over a week ago and it was real (ended up making around $300k and I only have 1000 shares left, so even if it went to $0 right now I'd still have a nice profit)

I saw posts yesterday asking if it's still worth buying GME at market open. I was sure these people are crazy and about to lose their asses. I just checked price action a few minutes ago and it went from $60 to $144 before selling off back to $70s. Crazy.

This was the craziest day of trading I have ever seen. As GME was crashing down from $155, there was a moment when the entire market went down 5-10% and futures spiked. I ended up triggering limit sales on VXX that I had set weeks ago and forgotten about.

Truly, this is a speculative bubble that is going to pop very, very hard.

Re: The nihilism of r/wallstreetbets

#178
post #43

With interest rates at 0% and a quarter of all US dollars in existence having been created in the last year, there is no other choice besides speculation to have any hope of getting ahead. Policymakers have made quite clear that "work hard, save money" is a suckers bet.

have they? my meme positions have barely broken even this year, while the S&P 500 is up ~19% over the same time period. working hard and investing the bulk of my savings in broad market ETFs is working quite well for me so far.

> while the S&P 500 is up ~19% over the same time period

Which reinforces WSB's claim of the market having no grounding in reality.

Re: The nihilism of r/wallstreetbets

#179
post #167
post #144

Earlier quoted context omitted.

>Taking credit card advances to YOLO into short-dated OTM call options is drug-addict level desperation. It's actually somewhat rational. Say you just graduated college and make 30k as a waiter. You scrape together savings, loans, CCs, etc. and pull together 20k. Take that to Robinhood 2-3x it with margin and place a 50k bet that has a 8% chance to pay off 10x. If you "win" you're up 15 years of wages or more. If you…

A 92% chance of bankruptcy (to use your example) seems like a poor idea. Its not about the outcomes of winning vs losing, the smart move is to not play. A college graduate hopefully will not be making $30k/yr for too long, and being almost completely cut off from credit for a decade is really going to sting when they do want to finance a car or other large purchase.

> A college graduate hopefully will not be making $30k/yr for too long

I think you might be in a well paying profession

Re: The nihilism of r/wallstreetbets

#180

It just doesn't add up to me. If you take Gamestop (GME) today's hot item, it's trading 170M shares back and forth, at say, $70. That's $11B sloshing back and forth. You're telling me 10,000 (if even?) guys sitting at home doing retail trading have $1M each in positions driving this? 100,000 people with $100,000 each, during the day? I think it's quant and algorithmic trading. I would love to hear from an expert thou…

>You're telling me 10,000 (if even?) guys sitting at home doing retail trading have $1M each in positions driving this? 100,000 people with $100,000 each, during the day? Matt Levine wrote about this in his Money Stuff newsletter today. I highly recommend the newsletter. In summary, the options have an amplifying effect on the total volume because of the hedging by market makers. Pair it up with a meme stock, and you…

In this scenario, How does the market maker unload the 80 overvalued shares that they bought to cover their exposure. Who ultimately gets stuck holding the bag when reality kicks in?
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