GameStop Is Rage Against the Financial Machine • Hacker News Board

Re: GameStop Is Rage Against the Financial Machine

#501

Post by drited » Wed, Jan 27, 2021, 11:04 PM UTC

kevinsundar wrote: post #450

freeone3000 wrote: post #359

Earlier quoted context omitted.

It's also very hard to exit a falling position. It was hard to exit a rising position this morning -- the stock was on trading hold multiple times. By the time you notice it's falling, it's too late to sell

You can manage risk with stop-loss. Its not really that hard. You can use this to "lock-in" profits without selling.

If it gaps down stop loss orders won't execute at the stop loss order price (because there is no buyer at that price). Therefore previous paper profits are not locked in with certainty with stop loss orders. You need prices to swoop down in an orderly way with sufficient liquidity for stop losses to work in the way I think many imagine they do.

Re: GameStop Is Rage Against the Financial Machine

#502

Post by renewiltord » Wed, Jan 27, 2021, 11:04 PM UTC

TuringNYC wrote: post #344

AdmiralAsshat wrote: post #20

> These points doubtless make me appear to be a complacent shill for the financial industry, talking down to the rubes. For the record, I’m still angry about the way workers were ripped off in Britain more than three decades ago, and about the way the little guy ended up bearing the brunt for the financial implosions of 2000 and 2008. But it looks horribly to me as though the same thing is going to happen again — and…

This Reddit Post is very revealing: https://twitter.com/inactivist_/status/1354537152445521923/p...

The inverse galloway index would have you a millionaire in 2 years from 100k.

Re: GameStop Is Rage Against the Financial Machine

#503

Post by donmcronald » Wed, Jan 27, 2021, 11:05 PM UTC

superfrank wrote: post #355

fredophile wrote: post #330

Earlier quoted context omitted.

It's a short squeeze. The guys left holding the bag are people that are covering their short positions in the company. The average retail investor is not shorting stocks.. There will probably also be some people that try to jump on the trend too late but that isn't who is being hurt right now.

That's the idea, but there will also be a bunch of retail traders who get caught up in the frenzy and end up losing too much when the bubble pops. Maybe it's their own fault for being greedy, but they do still exist. It won't only be hedge funds left holding the bag. Also, there is a worry about multiple hedge funds going bankrupt and causing a cascading effect when they are forced to close out other positions which…

Unfortunately I think preventing it in the future will end up being something that prevents retail investors from impacting the market rather than reigning in Wall Street.

Re: GameStop Is Rage Against the Financial Machine

#504

Post by nerfhammer » Wed, Jan 27, 2021, 11:06 PM UTC

ta1234567890 wrote: post #384

This is a great example of how the stock market is not about fundamentals, just like Bitcoin, it’s all about popularity and perception. In the end, people don’t care if the “stock is really worth” the price, they only care if themselves or someone else are willing to pay the price, nothing else really matters.

but a stock is partial ownership of a real business, which has revenue and owns other assets

Re: GameStop Is Rage Against the Financial Machine

#505

Post by __turbobrew__ » Wed, Jan 27, 2021, 11:07 PM UTC

jowsie wrote: post #426

herpderperator wrote: post #343

Earlier quoted context omitted.

Melvin Capital did.[0] [0] https://www.cnbc.com/2021/01/27/hedge-fund-targeted-by-reddi...

You sure about that? https://www.reddit.com/r/stocks/comments/l64xvw/gme_dedicate...

What is stopping Melvin Capital from lying about closing their position in order to deflate the stock price so they can actually close out their short position when they are due this coming Friday?

Re: GameStop Is Rage Against the Financial Machine

#506

Post by throw0101a » Wed, Jan 27, 2021, 11:07 PM UTC

admax88q wrote: post #315

AdmiralAsshat wrote: post #20

> These points doubtless make me appear to be a complacent shill for the financial industry, talking down to the rubes. For the record, I’m still angry about the way workers were ripped off in Britain more than three decades ago, and about the way the little guy ended up bearing the brunt for the financial implosions of 2000 and 2008. But it looks horribly to me as though the same thing is going to happen again — and…

> The "little guy" refers to the Reddit traders that are making a killing right now, with the expectation that eventually the stock price will crash again. The reddit traders are only making a killing if they're selling these inflated positions. At some point somebody will be left holding the bag, odds are it will be a bunch of people from wallstreetbets and other retail investors that are late to the party. There's…

> At some point somebody will be left holding the bag, odds are it will be a bunch of people from wallstreetbets and other retail investors that are late to the party.

So basically like almost every other trade? Every buyer needs a seller and vice versa.

If you're active in the market, why do you think you're right on any particular trade and the person on the other end is wrong?†

* If you're buying, why is the other person selling? What does he know that you don't?

* If you're selling, why is the other person buying? What does he know that you don't?

The 'safe bet' is to go with index funds (US: S&P 500, Russell 3000) and simply get market returns for the equity portion of your portfolio.

† They could be selling for "correct" reasons: to rebalance their portfolio, to generate income (e.g., in retirement), etc. They may not think there's anything material to the company in the trade, they may simply need cash.

Re: GameStop Is Rage Against the Financial Machine

#507

Post by lordnacho » Wed, Jan 27, 2021, 11:08 PM UTC

pbhjpbhj wrote: post #383

rabuse wrote: post #197

Earlier quoted context omitted.

Yes. The large order is placed on the market, and it would be gobbled up at this point in time.

I know nothing about trading: Presumably they'd want to split the sell offer into smaller portions to avoid indicating a turn in the market which might cause a fall in price before they realise [as big a] profit on their position? Like trying to get out of a place when you see things heading south (ie a calamity approaching). If you run for the door then everyone will see you and the people close to the door might bl…

Dripping it out with an algo is perfectly legit and done by many people.

Re: GameStop Is Rage Against the Financial Machine

#508

Post by imtringued » Wed, Jan 27, 2021, 11:08 PM UTC

ISL wrote: post #358

TuringNYC wrote: post #316

Earlier quoted context omitted.

It happens all the time, and retail investors dont get bailed out. Here is a lowly perspective from the retail investor: https://twitter.com/inactivist_/status/1354537152445521923/p...

The retail investor only wins if they realize their profits. If they don't, those profits are shifted to a third actor (or never removed from their tormentor's pocket).

The real winners are those who bought GME at $10 or less and the WSB userbase is well aware of that fact.

Re: GameStop Is Rage Against the Financial Machine

#509

Post by Macha » Wed, Jan 27, 2021, 11:09 PM UTC

JanSt wrote: post #415

supercanuck wrote: post #388

Earlier quoted context omitted.

it started with this.. https://www.youtube.com/watch?v=JWdWCtLMoU0

For those downvoting: that‘s u/DeepFuckingValue. He got laughed off by WSB for a year and is now making millions every day. Turned 50k to 48 million as of today.

If he sells prior to to the fall, that is

Re: GameStop Is Rage Against the Financial Machine

#510

Post by tracker1 » Wed, Jan 27, 2021, 11:09 PM UTC

IIAOPSW wrote: post #116

wyxuan wrote: post #51

Earlier quoted context omitted.

I lost my respect for Rossman after he uploaded a video cursing out short sellers after $AGRX sunk after getting approved. Bio stocks almost always sink after PDUFAs, but he was just raging after what he thought was market manipulation.

I was disapointed in some of his videos about Coronavirus and Cuomo's executive orders. But then I remembered that he is neither a stock trader nor an epidemiologist. His channel is fundamentally an opinion show. Its a good opinion show, but still an opinion show. When he starts giving opinions on things far outside his wheelhouse he becomes a more-rational-than-average lay person.

I think he is mostly just genuine about his opinion on things and explaining why he holds those opinions. Per peer post on his intellect. Which I agree is generally a rational wat to approach things and I respect him for it.