AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
261–270 of 313 posts
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#262Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…
Conspiracies happen so frequently on Wall St that “conspiracy theories” should be closer to a priori assumption than irrational fringe ideas. Were people skeptical of Moodys A+ ratings of subprime mortgages conspiracy theorists? And that’s far from the only example of financial fraud . There’s a lot of money at stake. Citadel is most of Robinhoods revenue, they put money on the opposite side of the trade via Melvin,…
I have been seeing people on WSB claim that the stock price shown on the ticker is "manipulated by the hedgies" and asking when the real stock price is going to finally appear. This is pretty similar to Q people asking when it will be revealed that 45 is still the president. That one absolutely fits my definition of "wild conspiracy theory."
In terms of more popular accusations of wrongdoing among brokerages as they shut down the buy side, that seems plausible but hard to prove coordination unless someone recorded the conversation in a smoke filled room. If there was big money to make and a way to get away with it, I assume most corporations would engage in illegal activities.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#263Earlier quoted context omitted.
I struggle to see the political claim that these people are being flooded with Trumpers. This event was and has been pretty bipartisan. From what I’ve seen thus far is the media trying to use the Q / Trumper angle against this community to tarnish its public perception and recent novelty. I am happy to be proven wrong though, I just don’t see it.
There are some elements of something The_Donald-like, but it's true that it's not (yet?) the same thing. They push a lot of very strong and completely unsubstantiated conspiracy claims in particular, and they'll quickly accuse anybody dissenting of being a shill or having an ulterior purpose. Here's a good example I think: https://www.reddit.com/r/wallstreetbets/comments/l93d18/gme_... This is good OG WSB content, wr…
> This is good OG WSB content, written by one of the users that was in on the play from the very start.
He is one of the few people that used a LIMIT order.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#264Earlier quoted context omitted.
I find that most people don't realize they are always betting. Keeping your wealth tucked under your mattress in USD is still a bet. Everything is a bet and everything has different risk profiles. If someone sees that shorts in GME are over leveraged, well in hindsight they were absolutely right to buy in to this "gambling". I find the most irrational actors with regards to investing are the people who only do "safe"…
This was me. I lost money on GME betting on the fact that more shorted shares still had to be covered. The short squeeze wasn't a complete failure. It happened, it was just much smaller than many predicted. I still wonder what would've happened if Robinhood didn't shut off demand by preventing people from buying shares. My investment thesis didn't foresee this happening. I don't think anyone did. The other large part…
Also, I think to execute a short squeeze successfully, it is by no means sufficient that the outstanding short interest exceeds 100% - that boundary has no significance.
I think what is required is that you control long interest of 100% or more of the net shares (or float). (The shorts being > 100% is neither necessary nor sufficient for that.)
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#265Earlier quoted context omitted.
So much this. /r/wallstreetbets is going to struggle to recover. It's absolutely Eternal September. I've been subbed to WSB for about 5 years, ever since someone at work (prop trading) mentioned it as basically being a bunch of 25-30 yo finance people hanging out and doing dumb shit in their personal accounts for fun. I'll admit, I did some dumb stuff myself, trying to time UVXY/TVIX plays. (Basically netted 0 of cou…
Seems the daily thread grows so big so fast that it becomes dog slow to even browse. But yeah, a lot of the comments are just one liner garbage memes: HODL! TO THE MOOOOOON! FISTS ON CHEST NO FEAR! TO VALHALLA! DIAMOND HANDS! As well as echo chamber "encouragement" to HODL! until $1000/$9000/the moon because Mark Cuban is on our side!
The GME threads grew so fast that reddit couldn't keep up and every 4-6 hours a new thread was spawned and pinned.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#266Earlier quoted context omitted.
I agree there is some amount of risk in everything. When I say bet, I mean a zero-sum game like in a casino. Somone needs to lose money in order for you to gain money. No new money is being created in an options play or a GameStop squeeze. For you to gain 10 dollars, ten people must lose a dollar. The best you can do is encourage more players to join the bet to increase the size of the pot and the less they know the…
Short term investing is for sure a bet. Long term investing is a bet with the house edge in your favor, because of corporate buy-back and dividends.
Yes, I'd agree that the longer the timescale, the more you can capture new value that is being created as companies grow, make money and pay dividends.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#267Earlier quoted context omitted.
I find that most people don't realize they are always betting. Keeping your wealth tucked under your mattress in USD is still a bet. Everything is a bet and everything has different risk profiles. If someone sees that shorts in GME are over leveraged, well in hindsight they were absolutely right to buy in to this "gambling". I find the most irrational actors with regards to investing are the people who only do "safe"…
This was me. I lost money on GME betting on the fact that more shorted shares still had to be covered. The short squeeze wasn't a complete failure. It happened, it was just much smaller than many predicted. I still wonder what would've happened if Robinhood didn't shut off demand by preventing people from buying shares. My investment thesis didn't foresee this happening. I don't think anyone did. The other large part…
It seems accurate information on short interest, etc, is very important for investors. Why can’t this be updated as often as possible (e.g at least daily) for the public?
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#268Earlier quoted context omitted.
I find that most people don't realize they are always betting. Keeping your wealth tucked under your mattress in USD is still a bet. Everything is a bet and everything has different risk profiles. If someone sees that shorts in GME are over leveraged, well in hindsight they were absolutely right to buy in to this "gambling". I find the most irrational actors with regards to investing are the people who only do "safe"…
I remember for me during 2008 I finally understood how NOTHING has intrinsic value, it’s always about what others perceive in the market. Real estate, dollars, gold, stock all arbitrary in a way I never considered. All built on sand.
> NOTHING has intrinsic value. [...] All built on sand.
That's... just not true? Many things have non-arbitrary value. You need dollars to pay taxes. You need real estate to sleep and work. You can make pretty things that last a long time from gold.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#269Watching HN get caught up in this Gamestop bubble over the past week has been eye-opening to me about the community. The kind of information being spread around WSB was fully ridiculous. Wild conspiracy theories, financial advice with no basis in reality, astroturfing, and mob behavior. There has been an incredible amount of bleed-over between the garbage I've seen posted on WSB and the things posted in these HN thre…
hear, hear. I've been flagging and downvoting till I'm just disgusted. the HN community overall appears to be as credulous and naive as any other. If we don't take out the trash this place is going to stink.
Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains
#270To the surprise of no one--the established, well-prepared and well-funded players out-compete Joe and Jane retailer investor. Everyone loves the David defeating Goliath at his own game narrative. I only worry that we are going to forget all of the times that David gets slain.
There's a simple lesson. Buy and hold a low-fee index fund. Stop trying to pick stocks. And for God's sake stop trying to day trade stocks. Deviating from buy-and-hold indexing is mathematically a zero-sum game. Winning this game is also one of the most monetarily rewarding games on Earth. It's extremely unlikely that you're anywhere near good enough to win this game. If you don't know who the fool at the table is, i…
I disagree. The lesson here is 1) figure out the memestocks before they become memes, 2) buy low and depending on memefication potential sell high.
At some point I was > 1200% with GME, but, I got greedy. I could have made bank in nearly every swing but hindsight is 20/20.
The goal is to outpace the market even with small amounts while investing most of the portfolio at safer stocks/long term plays. Ended up my GME saga at > 300%.