GameStop Is Rage Against the Financial Machine • Hacker News Board

Re: GameStop Is Rage Against the Financial Machine

#261

Post by shpx » Wed, Jan 27, 2021, 7:57 PM UTC

jimbob45 wrote: post #145

jeffreyrogers wrote: post #129

Earlier quoted context omitted.

I don't think what they're doing violates the law[0], but they could easily subpoena Reddit and find out who the users are if they wanted to. [0]: too complicated to get into here, but basically my interpretation of the law is that you need to be making trades that you intend to cancel or revert immediately in order for it to apply to you, and what these traders are doing is instead speculating on the price going up…

How would Reddit know who those people are? Protonmail + VPN would hide their identities as far as Reddit is concerned, right?

You actually still don't need an email address to create a Reddit account.

Reddit has stayed true to their word of maintaining the old design, and it's free of the dark patterns in the redesign. Go to https://old.reddit.com/register and just leave the email field blank or if you use the pop-up menu (the thing you get when you click login/register in the top right of the old design), you can click skip on the first screen where it just asks you for your email.

Re: GameStop Is Rage Against the Financial Machine

#262

Post by boringg » Wed, Jan 27, 2021, 7:59 PM UTC

nightowl_games wrote: post #251

boringg wrote: post #218

Earlier quoted context omitted.

> This isn't true. The institutions with Short Exposure are connected to the institutions who buy Robinhood data and perform high frequency trading on those orders. Citadel and Melvin can BUY GME themselves to mitigate the risks. It is likely that a substantial amount of GME is being held by the institutions who had short exposure. It's basic risk mitigation. -- They would have to do this at great cost and loss (rumo…

Fair assessment. I am just pushing back at the narrative that this is a "win" for the little guy and a "loss" for wall street. Retail investors putting money into the market _at all_ is a net win for wall street _every time_ imo.

Don't disagree with you - the markets are heavily balanced in favor of entrenched players who have informational, scale and timing advantages (ie wall street). I do think that there's something else at play here ... we will have to see what happens over the next couple of weeks as things shake out.

Re: GameStop Is Rage Against the Financial Machine

#263

Post by boringg » Wed, Jan 27, 2021, 8:00 PM UTC

nightowl_games wrote: post #251

boringg wrote: post #218

Earlier quoted context omitted.

> This isn't true. The institutions with Short Exposure are connected to the institutions who buy Robinhood data and perform high frequency trading on those orders. Citadel and Melvin can BUY GME themselves to mitigate the risks. It is likely that a substantial amount of GME is being held by the institutions who had short exposure. It's basic risk mitigation. -- They would have to do this at great cost and loss (rumo…

Fair assessment. I am just pushing back at the narrative that this is a "win" for the little guy and a "loss" for wall street. Retail investors putting money into the market _at all_ is a net win for wall street _every time_ imo.

Also - Citron has already said that they will take this trade into account in how they allocate in the future. I don't think this will really change anything though.

Re: GameStop Is Rage Against the Financial Machine

#264

Post by stonecraftwolf » Wed, Jan 27, 2021, 8:02 PM UTC

eastbayjake wrote: post #258

stonecraftwolf wrote: post #88

Earlier quoted context omitted.

I don’t think dismissing this phenomenon as a stock turning into a meme is right. WSB is...something, but there is actually a rationale behind going long GME. If you think that the new CEO, known for turning dead retail into profitable online content and e-commerce businesses (as I understand it), is going to turn GME around, then buying $12 Apr 21 calls for thirteen cents or whatever it was makes sense absent any no…

To clarify: not a new CEO (current one has been in place since April 2019) but rather an activist shareholder who bought a large stake and got seats on the board as a result, and that guy has the e-commerce turnaround story

That’s what I get for skimming! Thanks for the correction. :)

Re: GameStop Is Rage Against the Financial Machine

#265

Post by moolcool » Wed, Jan 27, 2021, 8:11 PM UTC

germinalphrase wrote: post #257

moolcool wrote: post #255

Earlier quoted context omitted.

Where have you been? TSLA was one of the biggest meme stocks and WSB won big.

I hear the hype. I see a few big winners, but there are a lot of people piling on that don’t know the first thing about why prices go up and down.

So what?

Re: GameStop Is Rage Against the Financial Machine

#266

Post by tony101 » Wed, Jan 27, 2021, 8:17 PM UTC

koheripbal wrote: post #169

jimbob45 wrote: post #138

Earlier quoted context omitted.

Same stuff goes down on 4chan and several other sites. Not to mention the fact that the SEC has neglected to investigate insider trading for years now. IMHO why the fuck is shorting legal to begin with. Short insurance should be mandatory for short trading.

> the fact that the SEC has neglected to investigate insider trading for years now. Obviously false: https://secsearch.sec.gov/search/docs?utf8=%E2%9C%93&affilia... > 4chan and several other sites... Scale dictates enforcement priorities, obviously. Like a lot of people, they don't deal with issues until they are large and impact the market. They are ABSOLUTELY going to intervene here. First with some immediate actio…

> "First with some immediate action, and later they'll craft a new rule to guide social media on stock advice being not allowed on their platforms (IMO)."

What about Section 230?

Re: GameStop Is Rage Against the Financial Machine

#267

Post by cwhiz » Wed, Jan 27, 2021, 8:36 PM UTC

koheripbal wrote: post #239

cwhiz wrote: post #208

Earlier quoted context omitted.

Ha! Not only does front running happen all the time, but high frequency trading is de facto legal front running. Just beat them on a shorter or faster wire. The whole thing is rigged.

That isn't Front Running - by definition. Front Running is when you receive an order from a large client and you yourself trade in the same stock before them, and then sell the stock to them, or allow the spread to narrow and pocket the difference. High frequency trading is not front running unless it illegally takes data from the client trading desk - which would be both obvious and highly illegal.

There is a reason high frequency trading is typically referred to as legal front running. Sure, it's not front running by legal definition, but in practice it is absolutely front running. Beating trades to the market and making micro-gains on a mass scale.

Re: GameStop Is Rage Against the Financial Machine

#268

Post by kqr » Wed, Jan 27, 2021, 8:41 PM UTC

cwhiz wrote: post #215

amalter wrote: post #194

Earlier quoted context omitted.

Hard no! I want scams and shady schemes uncovered. What a disappointment that Herbalife wasn't brought down by the shorts. I'm struggling to even understand what a market with "no negativity" means. We want to evaluate firms with a critical eye. If they are mis-valued, that serves no one.

>I'm struggling to even understand what a market with "no negativity" means. Just imagine basically... every single other market. The price of goods at Walmart is not based on your bet on supply and demand. If there are more buyers than sellers, the price goes up. If there are more sellers than buyers, the price goes down. If a business wants to raise money by issuing new shares, supply and demand will dictate the pr…

For better or worse, derivatives-based economies are incredibly resource-efficient. By creating a formal system for actually assigning universally-understood value to promises, we can do a lot more with a lot less.

Sometimes bad things happen, but you can be sure we'd have none of the niceties of modern society without a derivatives-based economy.

Immediate cash just has a ceiling for what it's capable of supporting.

Re: GameStop Is Rage Against the Financial Machine

#269

Post by avereveard » Wed, Jan 27, 2021, 9:02 PM UTC

cwhiz wrote: post #68

I am loving every minute of this. The "professionals" gamble on the market all the time, front run, high frequency trade, and relentless tactics to get rich at the expense of the "retail" investors. Now they are upset that apps like Robinhood has provided unprecedented access to the markets. Their exclusive access to insane gambling nonsense is being torn down in real time. If Wall St can gamble and cause a global fi…

> the "professionals" are bothered that the "idiots on WSB" are making a mockery of the market

I think it's deeper. if they get forced by a margin call to purchase stock people that shorted without a lend will quickly come under scrutiny from sec, which will be quite interested to know which broker(s) allowed to reach this ridiculous float volume without securing the shares

they're not just covering their losses, whose whom will remain with uncovered short can get fines and or jail time.

Re: GameStop Is Rage Against the Financial Machine

#270

Post by cccc4all » Wed, Jan 27, 2021, 9:02 PM UTC

The wall street casino recoils in horror that some people are good at counting cards at black jack stock market and teaching millions in how to count cards at black jack stock market.