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The Battle of GameStop

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Re: The Battle of GameStop

#501

Post by imtringued »

TeMPOraL wrote: post #410
afiori wrote: post #369

Earlier quoted context omitted.

> it's efficiency in enriching participants of the stock market. Proponents would say that it is efficienct in funding ideas that are more likely to succeed, with the partecipants in the stock market taking a commission for the transactions.

My point is that "success" on the stock market isn't always a function of doing anything useful in the real world.

This is true and not just true of the stock market. It's true of the economy as a whole. The stock market is just a manifestation of a specific part of the economy.

If inflation is low you can do the dumbest things imaginable and as long as you make your money back you can keep doing the dumb thing over and over again.

If there was decent inflation you would have to have at least some expectation of a future gain because inflation and by extension the increased interest rates would cause your net 0 investments to be a net loss.

Re: The Battle of GameStop

#502

Post by imtringued »

shouldiquitamzn wrote: post #74
in3d wrote: post #71

Earlier quoted context omitted.

You’re a lottery winner, congrats. People made money during the tulip mania also. You’ve given money to the Wall Street, not taken it away. The biggest winners are companies like Robin Hood and hedge funds who buy their order flow data and hedge funds that take advantage of the bubble to play this, while the losers will be small investors who were late to the game and believed the bullshit about how it’s anything mor…

No I made this money myself. In any time in basically the last decade, if you leveraged up on the SPY or QQQ, you are now retired. People are too risk averse, they will be stuck in a job forever

Here is the thing about deflation. Everyone, literally everyone, invests into the capital markets and becomes rich. People start liquidating their assets and spend them only to realize that the real economy is gone and their money is worthless.

Re: The Battle of GameStop

#503

Post by RONROC »

finolex1 wrote: post #349
0b01 wrote: post #7

Citadel can see 80% of retail orderflow such as Robinhood and is massively long since last Friday as can be seen from the calls they are selling. Now it is likely the steam has run out(gamma cascade) so they are placing their bets on the opposite side by taking over Melvin which is massively short without causing too much market impact.

I may be wrong, but there is an information firewall between Citadel Securities (the market maker that pays for order flow), and the Citadel LLC (the hedge fund that is bailing out Melvin Capital)

I've seen comments about the supposed "information firewall" a couple of times in various threads related to the GME WSB fiasco across a few different websites.

I am not a financial professional, but I am not stupid.

Anyone who believes that 1. this firewall exists, 2. is up to snuff (ie. working like it should), and 3. is not being constantly undermined formally or informally is sorely mistaken.

Re: The Battle of GameStop

#504

Post by imtringued »

totalZero wrote: post #167
edgyquant wrote: post #158

Earlier quoted context omitted.

I make winning option trades as well, as a hedge against my portfolio. If you made a disproportionate amount of cash of an options play it was luck. I’ve done it before, made almost 1500% on an AGFS play when I saw a consistent downtrend in it. But it was luck and nothing else.

This is a really, truly bad take. Option prices move every day. There do exist, in fact, some people who are very skilled at making money trading options. Some people do it for a living with rich people's money, and many of them have the same skillset/education as the general HN audience. If this guy actually made millions over the course of dozens of trades, it makes more sense to let him talk than to downvote him a…

If everyone is following his strategy the market would be swept with liquidity and there would be no upside to his strategy.

Re: The Battle of GameStop

#505

Post by imtringued »

taway0125210 wrote: post #161
shouldiquitamzn wrote: post #17

I’ve made millions on WSB options plays. I can finally quit my job and stop being a cubicle slave. The visceral reaction from the media on this is disgusting. Major hedge funds got caught on the wrong side of this, and have been making a huge stink about it. CNBC to the rescue, demonizing young middle class Reddit investors. This whole thing has opened my eyes to how even my FAANG compensation is peasant money, it’s…

Here's my account, that might be survivorship bias. I also traded tech stocks and cryptos and was able to significantly beat the market on the former and quit (also from Amazon) a few years ago. I invested in NVidia after recognizing GPU shortages due to ML continuing hype. I switched to AMD after recognizing their Zen CPUs are slowly beating Intel. I switched to TSMC after realizing their accomplishments are signifi…

If trading firms merely focused on economic fundamentals then we would see far less bubbles. You have to abandon economic fundamentals to cause and take advantages of bubbles and an economy built on bubbles is not healthy. It's built on mania.

Re: The Battle of GameStop

#506

Post by imtringued »

Kosirich wrote: post #192

Can someone extrapolate what happens (hopefully) in a half a year when we get to herd immunity and the economy opens fully when a lot of these people (I'm guessing) will decide to cash-in in their stocks in order to go to a nice vacation, get a new car ect. Can we expect some sort of economic recovery followed by hyperinflation?

If you predict hyperinflation then which goods do you think will we have a shortage of? Because that is what inflation is. Too much spending and not enough things to buy.

post WW1 Germany both had a broken economy and a massive amount of foreign debt. What makes you think that similar events will take place? What prevents the economy from simply recovering in 1 or 2 years?

Re: The Battle of GameStop

#507

Post by TurkishPoptart »

dvt wrote: post #6

> The same emotion that caused us to root for the thieves in Ocean’s 11 is what makes Wall Street Bets so enticing. Put frankly, Millennials are tired of getting fucked by the man. When you’re underemployed with $100,000 in student loan debt, your financial situation feels overwhelming. You really don’t want to take the advice of your parents or CNBC talking heads [5] to invest 10% of your salary for a 4% annual retu…

How are people getting rich over this? Buying GME calls and hoping they appreciate?

Re: The Battle of GameStop

#508

Post by imtringued »

nomay wrote: post #287
PartiallyTyped wrote: post #271

Earlier quoted context omitted.

I am already broke. The money I invested isn't enough to change my life, but the returns are. I can fast for a week or two, I can walk to school instead of taking the metro. I am poor af and they can't take that away from me. But you know, melvin capital is already 30% of their equity down in January. They have everything to lose. I have nothing.

>melvin capital is already 30% of their equity down in January The thing is, they won (bigly) almost every year since their inception, it's a relatively minor mishap for them even if they gain nothing for the rest 11 months. Guess what, they and their clients will be laughing their asses off and move on along with their high life.

If retail investors join the fantasy economy there is less value to extract from the real economy.

Re: The Battle of GameStop

#509

Post by [deleted] »

IIAOPSW wrote: post #92
admax88q wrote: post #32

Earlier quoted context omitted.

I think this is more like beanie babies all over again. Except now that its easier to trade its happening in stocks. Populism of a companies stock doesnt really change the performance of that company. GME will implode eventually and the newest suckers or WSB will be left holding the bag.

You're not quite getting what I'm saying. A bubble like beanie babies and dutch tulips is still a logical consequence of seeking financial gain. A bubble is a game of chicken. It is about knowing when to jump off. This is a new phenomena. It is no longer about just making the bull thesis or the bear thesis. It is now persuasive to make the "this will fuck over a hedge fund manager" thesis. We need to add an entirely…

[deleted]

Re: The Battle of GameStop

#510

Post by Apocryphon »

admax88q wrote: post #450
IIAOPSW wrote: post #92

Earlier quoted context omitted.

You're not quite getting what I'm saying. A bubble like beanie babies and dutch tulips is still a logical consequence of seeking financial gain. A bubble is a game of chicken. It is about knowing when to jump off. This is a new phenomena. It is no longer about just making the bull thesis or the bear thesis. It is now persuasive to make the "this will fuck over a hedge fund manager" thesis. We need to add an entirely…

I dont understand why you consider this to be a different phenomena than a bubble. Its still a bubble, people are still doing it for financial gain. Its just marketed as "doing this will screw hedge fund managers" to generate more hype. Its not a new phenomena, its just a new marketing strategy.

Traders urging others to "hold the line" and to not sell is new marketing, and if everyone believes in it, why isn't it new phenomenon?

https://twitter.com/HenryEnglert/status/1353773947804917760/...

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