Earlier quoted context omitted.
No, the article got it right. It's annoyingly common for people commenting on a subreddit to use a shortened name of the subreddit when discussing it. Since reddit will link you to anything starting with "r/", sometimes there's no subreddit there, sometimes mods will claim it just to be safe, and sometimes it's a cow. (r/cow = r/competitiveoverwatch)
Well the parent got it right in that r/wsb and r/wallstreetbets are literally two different subreddits. The former has a lot less volume but it nonetheless exists.
Reddit’s profane, greedy traders are shaking up the stock market
341–350 of 364 posts
Re: Reddit’s profane, greedy traders are shaking up the stock market
#342Re: Reddit’s profane, greedy traders are shaking up the stock market
#343Earlier quoted context omitted.
Case and point, just five years ago Redditors figured that out that by upvoting a post of image of a potato titled "Gaming Console. If you upvote this potato it will show up on Google Images when people search for Gaming Console." It even borked their news algorithm - https://i.imgur.com/A0zLPSR.png
Not trying to be a jerk but the phrase is "Case in point".
Re: Reddit’s profane, greedy traders are shaking up the stock market
#344Earlier quoted context omitted.
Honestly, I'm convinced that most know how to hit F12 on Firefox and edit HTML pages to 'prove' that they are buying meme stocks. I have zero expectation that their 'proof' is even proof. All modern web browsers have a debug mode that allows you to easily edit HTML.
Most of the screenshots are from Robinhood mobile and real. Who's actually posting what is the difference and you only see the big gains and losses since they're exciting and not the thousands of people losing money daily on bad trades.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#345Earlier quoted context omitted.
Can they be bad at trading? https://xkcd.com/2270/
This was actually addressed in one of Levine's columns last week (scroll to the second heading, titled "Efficiency") https://www.bloomberg.com/amp/opinion/articles/2020-02-20/mo... Worth a read. Short version is that a lot of the ways people lose money are hard to just do the inverse of.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#346Earlier quoted context omitted.
I wish people talked more about how Robinhood really enabled this sort of reckless speculation. Day trading on your smartphone was not really a "thing" pre-Robinhood, and then they came along with commission free trades on both stocks and options. So not only did they make it easier to day trade given no explicit fees for doing so, they also mainstreamed options trading, which is actually what most people in WSB do a…
The Gain/Loss posts on that sub are surreal. There's a guy that made 500k with 12k in two weeks with a series of daily bets that is off the charts.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#347Earlier quoted context omitted.
But was P&D happening?
P&D happens with penny stocks, where a small amount of interest can yield very real change. You can't P&D with any big cap. And the best part with P&D is that most everyone involved knew what was happening, but they played along hoping to get out before it peaks. And it was very real. You could get the emails pimping whatever the OTC stock was and watch as it pumped up, pumped up, pumped up, and then crashed to nothi…
Re: Reddit’s profane, greedy traders are shaking up the stock market
#348Earlier quoted context omitted.
> Someone's just bought a $1000 call option on a stock that's currently $400? Automated trading systems will probably raise alerts on that stock since someone must know something for that to happen. The trading system and its operators deserve whatever fate results from such a decision.
But they make money anyway, it's the customers (pension funds) that lose...
Re: Reddit’s profane, greedy traders are shaking up the stock market
#349Earlier quoted context omitted.
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…
Oof, yeah, I misspoke. I was responding to the parent comment which said that r/wsb can’t move markets when, 30 minutes prior, I had read something (Matt Levine’s take on it) with a claim to the contrary. Thank you random HN commenter for pointing out my flaw in the “perpetual upward” comment. Levine’s take still claims that r/wsb can technically move the market, no? Or should I go back and re-read? Maybe I interpret…
The effect of buying the stock with leverage instead of out of pocket (which is what call options let you do) is that the noise is amplified. The "true value" component doesn't change. Thus, when the noise is increasing the price, the price is higher than it otherwise would have been, and when the noise is decreasing the price, the price is lower than it otherwise would have been. Imagine the difference between P(x) = v(x) + cos n and P(x) = v(x) + 2 cos n.
Can technically move the market? Sure, but everything that happens in the market is technically moving the market. The main effect (as discussed in the Matt Levine pieces) is to increase the volatility of the stocks in question.
Re: Reddit’s profane, greedy traders are shaking up the stock market
#350Earlier quoted context omitted.
I wouldn't want to degenerate this into the morals part behind this, but I do wonder how you feel about this now looking back: To be +ve you had to exist in a world watching people go -ve, in a very direct way. I only have managed funds for my pension, I appreciate its not holier-than-thou its just indirectly filthy instead of mired in the pigpen. Total system? its mostly a zero sum outcome against normal incremental…
hmm, I take it you mean +ev and -ev ? not sure if I'm revealing too much, but as someone who is not white, or one of the "model minority", who grew up in what many would consider the "hood", attended one of the worst high schools in the country, I have felt my life has been inherently -ev due to the zipcode I grew up in / the color of my skin, who sees the many anti-AA views on this forum (advantages gained from AA a…
I am a believer (bad word, but no other choices) in AA and I hate the anti-AA rhetoric. I still struggle when people who could have benefited from AA either by gender or race say they don't like it, but I won't pretend they don't say it, or there aren't problems. AFAIK its always the best candidate, its just AA re-defines what 'best' is in ways some other people don't like. The whole PC/SJW language is just shit: its labels to deny the underlying problem.
I am the other side of this problem, never faced the bias, never had to overcome it. I might even be part of the problem. Can't hire wisely if you don't know your own biases. That said, hiring women and minorities into my ICT space is just hard, and thats from a not-for-profit with 80 staff and more cultures than I can count. We still put women into finance and HR more than into tech and we still have next to no leadership outside the anglo core. The board is mixed. So there's that, I think it helps. (not in the USA btw)
Money is colourblind.. kinda. I do not believe this is completely true. I don't know any Koch brothers, or Walmart owners, or Peter Theil, and so I work in third hand knowledge. I do not believe they are colour or politics blind: their view of money is complicated. But I do believe you when you say that proven skills cut more with hiring in the money space, than in other spaces. Indian capital by definition is non-white and there are some standout Indian capital movers-and-shakers who own steel, coal, but who also live in a culture which badges people from birth "other" and that totally freaks me out. (there is one, Sanjeev Gupta, who I will put to one side. He might be capitalist, but he's no racist: he's accormittel and tata steel. he's big)
If you wind up in quant with money, ethical investment will be out there, in the future state, as something to talk about as a sub-set of investment to model. I get, that plays in tobacco and drugs and oil will include speculative gains as they crash and burn, or take off and persist. You would get to make choices in that too: Do you want to make $m on the strength of coal-tar sand mining, as KSA and others dump oil stocks to move to Solar? Or do you want to invest in battery tech to ride the up wave in Solar, but be tied into KSA legals? Do you even have to care? No, you don't. And I won't try to pretend you cannot, and won't say you should, even if I do say I would like you (and others) to care.
I read about black radio/tv entrepreneurs some time ago. People who could have been in the weather underground or panthers, but chose to invest in the system instead. I have also read that Clarence Thomas is not an AA backer, believes its better to prove you got there without the help. I don't respect Thomas for obvious reasons. He's pretty anti-social, never mind anti-socialist)