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

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

#351

Post by philwelch »

JoeAltmaier wrote: post #328
blaser-waffle wrote: post #326

Earlier quoted context omitted.

These are 1) very specific norms, and 2) usually owned directly by the culture. Your devout Saudi is going to get upset if you breach etiquette around Islam, but he's not going to go to bat over mild slurs about Hispanics. Only in the West do they lose their mind defending the honor of people who are not in their in-group. I'm not sure if that is honorable, or just idiotic.

Some in the West include more people in their in-group. Some are not so tribalistic as imagined. From that point of view, they are defending their own.

In none of the situations I mentioned are people acting protectively towards an in-group, but rather towards a particular revered individual. Social norms and taboos are much more complicated than that.

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

#352

Post by sitzkrieg »

vehementi wrote: post #223
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…

This is not true of Interactive Brokers, right?

They run their own exchange and I'm sure they do order flow rebates so not really, but its not detrimental to retails

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

#353

Post by conanbatt »

jayrot wrote: post #346
conanbatt wrote: post #281

Earlier quoted context omitted.

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.

The depressing reality of these is that they're no different from lottery winners in that's they basically got lucky, with the added, pernicious factor, that they probably convince themselves that there was some type of skill or finesse which means they will likely keep trying.

Way better odds than the lottery!

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

#354

Post by hnews_account_1 »

kgwgk wrote: post #282
hnews_account_1 wrote: post #254

Earlier quoted context omitted.

You contradicted your sentences. I do know Robinhood gives zero commission trades by selling order flow data to hft and market making hedge funds but I don't think those funds execute the orders themselves. The orders still go to brokerages I think (may be wrong about this) or just hit Prime Services from non hft hedge fund books. Either way, those hft firms definitely like retail order flow data. My guess is they're…

> selling order flow data to hft and market making hedge funds but I don't think those funds execute the orders themselves The order flow data is worthless (because the orders come from uninformed traders) the value is in filling them without the risk of being shortchanged (because the orders come from uninformed traders).

1) order flow data is not useless because it comes from uninformed traders. It depends on the model being used. Most hft models aren't even concerned about the inflow of big trades from institutional money. Most of their models are simple short period time series forecasts they trade around. Which means the model is pretty agnostic on where the trades come from as long as enough back tests show that their predictive power is good enough.

2) even if that were not true, hft works on volumes. So I contradict my previous speculative comment by saying this but volumes of institutional flows absolutely dwarves retail flows. You'd have much more opportunities trading around institutional money than retail money.

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

#355

Post by econcon »

vijucat wrote: post #291
econcon wrote: post #238

I use Robinhood app to gamble on options, most of the times I lose and sometimes I won big to cover all losses. I don't understand options, other than a few things about them which help me trade them It's ok to ignore the big picture. Not everything has to have a profound meaning behind and similar are the stock moves. I believe most of the movements are irrational, so studying fundamentals or anything is going to of…

Since you work out: you must have seen that results accumulate (such as being able to lift more). The problem with the WSB style of trading is that the knowledge doesn't accumulate. It's just gambling all the way down. And you still end up spending time on it! If you'd like an easy-to-read + thin first book on options, I'd recommend Frans De Weer's "Introduction to Options Trading": https://www.amazon.com/Introductio…

Look into Green Lumber Fallacy.

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

#356

Post by thih9 »

tylerhou wrote: post #76
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.

They detect your private mode using JavaScript; you can bypass by pausing script execution with the developer console immediately after the article loads.

It doesn't really work, some users get treated as bots, see: https://news.ycombinator.com/item?id=22428193 .

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

#357

Post by shadowprofile77 »

mixedbit wrote: post #36
AnotherGoodName wrote: post #29

Earlier quoted context omitted.

I have a theory that WSB are so bad at trading that they actually do manipulate stocks due to messing up every automated trading platform that assumes there'd be some logic to the trades being made. 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. This appeared to happen…

Can they be bad at trading? https://xkcd.com/2270/

I don't see how the weird corollary the comic mentions could work. if you were to pick stocks that consistently underperform the market and someone used your choices as a metric of what NOT to pick (with the idea of thus outperforming the market with their choices) they'd be much more likely to simply pick a majority of mediocre to average stocks instead of special winners, since the selection of stagnant or only modestly growing stocks is much bigger than either the selection of underperformers or major growth choices.

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

#358

Post by blaser-waffle »

sireat wrote: post #327
blaser-waffle wrote: post #321

Earlier quoted context omitted.

What are some examples of Fake Forex shops?

There are many of them in Europe and the smaller ones change names quickly. Turn off adblock and go to finance and forex oriented sites. You will see many ads for them at least in Europe. A common marketing strategy for them is to offer heavy affiliate comissions and this leads to make-money-with-forex type of affiliate sites. That's another sign. Bigger ones would be someone like Saxo Bank which started as a bucket…

Good reply. Thank you for the detail!

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

#359

Post by vijucat »

econcon wrote: post #355
vijucat wrote: post #291

Earlier quoted context omitted.

Since you work out: you must have seen that results accumulate (such as being able to lift more). The problem with the WSB style of trading is that the knowledge doesn't accumulate. It's just gambling all the way down. And you still end up spending time on it! If you'd like an easy-to-read + thin first book on options, I'd recommend Frans De Weer's "Introduction to Options Trading": https://www.amazon.com/Introductio…

Look into Green Lumber Fallacy.

Good one! This actually does apply to options trading. Pricing quants may need to be masters of stochastic calculus, Ito's lemma, et al, but if you're trading and not pricing them, this analogy applies: even riding a bicycle, when described with physics equations, probably involves higher-order calculus that would put 2nd order options greeks to shame, but one does not need to understand the maths to learn cycling or even be the world's best cyclist! Similarly, if you trade the same instrument enough, you build "muscle memory" for how it moves, i.e., you get a feel for vega, vanna, et al which is almost visceral. The practitioner may use informal descriptions like, "uh oh, I can feel it bend now" rather than calculus to refer to a gamma-based acceleration of option price, but it is perfectly good enough.

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

#360

Post by [deleted] »

missosoup wrote: post #195
philwelch wrote: post #189

Earlier quoted context omitted.

I think he might have meant "political correctness" less in the sense of "extreme sensitivity about denigrating homosexuals" and more in the sense of "arbitrary rules of social etiquette that people get extremely upset at you for violating".

He actually reiterates the definition he had in the GP comment but then edited out: "Political correctness is a right-wing term used when they want to call somebody X, but may face social consequences for doing so." He thinks terms like 'political correctness' and 'victim culture' are some sort of right-wing slurs for virtuous attributes. He doesn't seem to be aware that this notion doesn't exist for 90%+ of the worl…

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