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Reddit’s profane, greedy traders are shaking up the stock market

bloomberg.com

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Re: Reddit’s profane, greedy traders are shaking up the stock market

#261

Post by girishso »

synaesthesisx wrote: post #259
girishso wrote: post #181

What's wrong with ordinary traders taking advantage of the flaws in dealers and big money bots? Aren't they (dealers and such) the ones who have been doing it forever?

Exactly. As someone who has made substantial profits over the years (including a six-figure profit on the recent TSLA and SPCE rally) thanks to WSB, it brings me great joy knowing I’m pocketing money straight off Wall Street institutions. WSB tends to celebrate losses (aka “loss porn”) and it’s well-deserved - many tend to do really stupid things (like “YOLOing” 100% of their portfolio into a single position). But if…

Interesting you mentioned "Kelly criterion", I have been interested in it for some time and the articles I read seemed to point out that it works "best" only after the fact (after the trade has been executed). How do you deal with this?

Re: Reddit’s profane, greedy traders are shaking up the stock market

#262

Post by rapsey »

vostok wrote: post #257
zelly wrote: post #214

Earlier quoted context omitted.

There is no way Wall Street is using trades by retail traders as a signal (except maybe to counter-trade them). Also btw Wall Street can easily differentiate trades made by big players versus hordes of retail traders, because the banks and HFT firms are who executes the trades from retail brokerages. Retail brokerages like Robinhood don't have the authority to execute trades. They subcontract to a HFT firm who then u…

What does counter trading and running circles around clueless retail traders mean? Is that another way of saying that retail traders buy on the offer and sell on the bid while HFTs buy on the bid and sell on the offer?

HFT = front running

Re: Reddit’s profane, greedy traders are shaking up the stock market

#263

Post by stainforth »

alexpotato wrote: post #35

Back in the early 2000's I worked for a company that was was hired (via intermediary law firms) by publicly listed companies to investigate pump and dump schemes on Yahoo message boards (you might call that the "Reddit of the early 2000's"). It involved a lot of web scraping Yahoo with Perl (specifically LWP) and then lots of analysis by humans with some help from automated tools. For example, if you plotted a histog…

What was the result of the investigations?

Re: Reddit’s profane, greedy traders are shaking up the stock market

#264

Post by [deleted] »

remote_phone wrote: post #112

As someone who was a very early member of /r/wallstreetbets: 1) /r/wallstreetbets and /r/wsb are two different subreddits. /r/wsb are for those that got banned from wallstreetbets 2) When wallstreetbets first started it wasn’t as crazy as it was today. There were some aggressive gamblers but there was opportunity for real due diligence and decent conversation. I contributed more than a few posts back in the early day…

[deleted]

Re: Reddit’s profane, greedy traders are shaking up the stock market

#266

Post by BaitBlock »

thih9 wrote: post #6

> You're in private mode. Subscribe to continue reading in private mode. I didn't realise that Bloomberg blocks private mode too. Messages like this assume that tracking is the default and make sure that we keep losing privacy. I really dislike this trend.

Try Baitblock https://baitblock.app

Baitblock has tracking resistance that also deletes first party cookies/other tracking mechanisms when it detects that you're not logged into a website.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#267

Post by manigandham »

simonebrunozzi wrote: post #242
safog wrote: post #23

Come on man, there's no where near enough volume there to move anything but the most low volume of stocks. All they trade in is meme stocks like TSLA, NFLX, MSFT, AAPL etc., and a few 100k on calls here or there won't budge the price in the slightest. On top of that, it's not even a P&D group, people there are just trading against each other, you have both bears and bulls and thetas. There's never been a concerted ef…

What's a "theta" ?

Options are contracts that let you buy or sell shares at a certain price up until a certain date in the future where they expire. These contracts slowly lose value up to that date (outside of moves in stock price that make the contract worth more or less in the meantime).

Some people sell these contracts on the probability that they will expire worthless and they keep all the money that someone else paid for them.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#268

Post by omegaham »

ra5 wrote: post #106

As a regular of WSB, this article is just absolutely absurd. Which I guess is the regular for Bloomberg these days (seemingly the Buzzfeed of business news it appears). All you'll find on WSB is a bunch of homophobic bored desk workers. The idea that subreddit of only a few thousand guys (mostly) with an extra $500 to blow on meme stocks can move a stock in _any_ significant way is laughable.

Yeah, I was under the impression that ~95% of posters on WSB don't actually day trade and are just there to meme and laugh at the trolling/idiocy. The other 5% are the fools YOLOing their college loans.

The charm of the subreddit is that it's hard to figure out who's who.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#269

Post by thaumasiotes »

tybit wrote: post #241
thaumasiotes wrote: post #115

Earlier quoted context omitted.

That's the opposite of what he said. Look at his latest article: > We have discussed this theory before, during Tesla’s wild rally, and I conceded that they’ve got a point. Not a perpetual motion machine, but a motion machine, sure. The machine runs on leverage. If you have $100, you can buy $100 worth of stock, and the stock will go up a little; your trade will be self-reinforcing. If you get a margin loan, you can…

Not a perpetual motion machine, but a motion machine, sure. The GP was correct, Matt clearly says it can create some upward momentum, albeit not an unlimited amount.

No, he says it exaggerates the ups and downs, so you get higher highs and lower lows. That is not "creating upward momentum" in an ordinary sense.

Also, it takes some guts to defend the idea "this perpetuates an upward movement" by quoting someone explicitly saying it doesn't. A finite upward boost and an infinite upward boost are different things, as explicitly noted in the quote you just pulled and in your comment on it.

Re: Reddit’s profane, greedy traders are shaking up the stock market

#270

Post by synaesthesisx »

girishso wrote: post #261
synaesthesisx wrote: post #259

Earlier quoted context omitted.

Exactly. As someone who has made substantial profits over the years (including a six-figure profit on the recent TSLA and SPCE rally) thanks to WSB, it brings me great joy knowing I’m pocketing money straight off Wall Street institutions. WSB tends to celebrate losses (aka “loss porn”) and it’s well-deserved - many tend to do really stupid things (like “YOLOing” 100% of their portfolio into a single position). But if…

Interesting you mentioned "Kelly criterion", I have been interested in it for some time and the articles I read seemed to point out that it works "best" only after the fact (after the trade has been executed). How do you deal with this?

This is a common way to implement it: https://www.investopedia.com/articles/trading/04/091504.asp

It’s not foolproof, but generally the idea is to keep positions small (relative to portfolio size) and quickly take profits - which is critical when dealing with something as insanely volatile as options. With options one can also improve their odds with intermediate strategies (such as call debit spreads, straddles/strangles during earnings). I often will temporarily buy calls on something like TECS (-3X Inverse Technology ETF) when I’m speculating on multiple tech earnings plays within the same week - that way if my calls on Apple or Microsoft don’t pan out it’ll be offset by the inverse ETF gains. Options can be an incredible tool, and used properly can be excellent for managing risk effectively.

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