Unless he’s a millionaire (which at 23, I doubt), why would he have any money in GME, let alone 10s of thousands? Or does he work there and they are stock options?
yolo trade based on the year old reddit post, they were a 4 dollar share less than 6 months ago
£10,000 or 2500 shares was worth £867k at close yesterday
Gamblers never tell you about their losses. £10k into Gamestop based on a Reddit thread either means you're too wealthy to care or reckless.
But fundamentally, if the company is sound and correctly valued, the short will either fail or be pretty inefective
but fundamentally Hedge funds should be allowed to say; create fake outages in a states power infrastructure to bump an energy company’s stocks, or drive a country’s (see Puerto Rico) debt obligations and collapse its govt; those are cool, right?
£10,000 or 2500 shares was worth £867k at close yesterday
Yup that's exactly what's happened. He originally invested 10k from savings in various things and did quite well. Then he came across the GME thing very early on and took a punt. Now (assuming he's got out) he's setup for life. Lucky boy.
How do you have £10k savings at 23?
How do you have £10k savings at 23?
Inheritance, normally. Or working hard, living rent-free at home, and no C&H.
How do you have £10k savings at 23?
Trust fund (yeah yeah I know!), not all young people are skint. He had a lot more than that but only used 10k to have a play on the stock market apparently.
Or, living at home and much C&H, but from a supplier point of view.
How do you have £10k savings at 23?
Inheritance? Previous dabbling in the market?
I had a bit more than that at that age. When I was 24 I stuck over 40k of my savings into investments thanks to a few rather good years and not paying rent (lived in a shed in my folks garden for six years).
Unfortunately I wasn't aware of GameStop a few months back.
Just took a look at GME on T212:
In the interests of mitigating risk for our clients, we have temporarily placed GameStop in reduce-only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed.
Beautiful eh?
Should the platforms be allowed to do that, effectively try and force people to sell?
That's got to be rigging the game?
The subreddit and online hype are more like a kind of flashmob in my view. It’s a kind of organised chaos.
Basically noise in the system, they can affect an uninteresting stock for a short while, but the markets as a whole will barely notice.
Inheritance, normally. Or working hard, living rent-free at home, and no C&H.
That wasn't my point - it's a very unusual investment stratagy (foolish) to have any more than 1 or 2% in a individual company as it's pretty risky. So unless you had millions in a tracker I wouldn't expect anyone to own that many shares in one company especially one which isn't going anywhere.
Exceptions being family business, share options etc.
However, in this case, it might just pay off....
Should the platforms be allowed to do that, effectively try and force people to sell?
Their platform, their rules. Fundamentally this is just people 'having a laugh' so I don't have a problem with the platform saying 'f*** off and play somewhere else'.
Beautiful eh?
Should the platforms be allowed to do that, effectively try and force people to sell?
That’s got to be rigging the game?
Robinhood in US also has done this. No market manipulation to see here.....curious this happens after Melvin got 2.7 billion from Citadel.
I suspect a savvy 23yr old would be more than willing to take a yolo punt based on a reddit forum.
Yolo being the operative term here.
However, in this case, it might just pay off….
Don't know the full details but he banked the profit from previous (more sensible) investment and used some of it to take a punt on GME and others. He only gambled what he could already afford to lose, and it paid off big time. I'm quite jealous!
Without trying to sound like a killjoy, if you've earned that £10k on minimum wage you're less likely to 'punt it' like this. This kind of 'trading' is proven to fail in the long term. It's a middle-class equivalent of going down the dogs.
if he's followed the reddit thread though, this isn't an investment strategy? It's acting on a tip... still risky of course!That wasn’t my point – it’s a very unusual investment stratagy (foolish) to have any more than 1 or 2% in a individual company as it’s pretty risky.
Let's see what the overnight market manipulation, or counter-manipulation, or counter-counter etc achieves.
Marke****ch has crashed for me 🙂
Their platform, their rules. Fundamentally this is just people ‘having a laugh’ so I don’t have a problem with the platform saying ‘f*** off and play somewhere else’.
Fair enough, just seems like a rather obvious double standard, they didn't squash trading of Tesla when price started running up and up (and seems to be continuing).
It does feel like they're happy for people to jump on a hype train, so long as it doesn't upset the big funds/institutions...
Casual/amateur traders can "play" in a disorganised way with their pocket change and that's fine,
but if they mess with the "Pro's" cheeky bets that won't stand...
just seems like a rather obvious double standard
It's blatant market manipulation, and proves the whole system is rigged, which for many on the GME bandwagon is exactly the point. If the big funds and traders can manipulate the market by colluding wiith each other why not small investors?
Fair enough, just seems like a rather obvious double standard, they didn’t squash trading of Tesla when price started running up and up (and seems to be continuing).
They are quite different situations. People are allowed to be overly optimistic about companies (eg Tesla) and overly pessimistic about others (most of the FTSE is undervalued right now). GME is market manipulation for no other reason than they can - which is sort of taking the piss and not something the plarforms want to encourage. It certainly isn't productive.
Casual/amateur traders can “play” in a disorganised way with their pocket change and that’s fine,
but if they mess with the “Pro’s” cheeky bets that won’t stand…
Care to take a "cheeky bet" which of those two groups actually provides anything but chump change for those platforms and their owners?
The hand that feeds is being bitten, no great surprises the industry isn't keen on that.
It’s acting on a tip… still risky of course!
I act on tips all the time, but each tip only gets a small % of my pension and I only follow a tip if it makes sense to me ie the company / fund should do better in the future (IMO). I fully expect some tips to be duff and loose money - although currently my worst performing asset is a FTSE100 tracker, which I keep meaning to ditch as I don't see sentiment changing.
GME is market manipulation for no other reason than they can – which is sort of taking the piss and not something the plarforms want to encourage. It certainly isn’t productive.
but its productive for hedge funds to short a business into oblivion?
Chickens coming home to roost?
https://twitter.com/MuhammadLila/status/1354790251479375879?s=20
We might have to accept some ambiguity here about what is and isn't collusion, but the kind of market instability that it can create is bad for everyone ultimately and the economy (we all own stocks through our pensions). Anyway, they put the stock in special measures 'cos of some suspicious trades. It's not been declared collusion yet.
probably why you didn't clear £800k profit this week then 😃I only follow a tip if it makes sense to me ie the company / fund should do better in the future (IMO)
They are quite different situations. People are allowed to be overly optimistic about companies (eg Tesla) and overly pessimistic about others (most of the FTSE is undervalued right now). GME is market manipulation for no other reason than they can – which is sort of taking the piss and not something the plarforms want to encourage. It certainly isn’t productive.
Allowing only the sell of GME shares on their platform (thus the price only going one way) seems more of market manipulation to me.
If the big funds and traders can manipulate the market by colluding wiith each other why not small investors?
I belive it's because it can't be proven (for what it's worth I'm sure they do) whereas the reddit gang can.
It's shit and it stinks.
Nah it's just the ugly self-righteousness of Reddit-bros.
yikes - on eToro it updated to $19.90 but then the site bombed, a page reload and it was back at $350 (I may need a new pair of trousers...).
but its productive for hedge funds to short a business into oblivion?
Yes, shorting only works if a company is genuinely over valued, so just speeds up the eventual discovery / correction. Companies (normally) only dissapear into oblivion if they are commiting fraud ie frigging their results.
I bottled at $430 and closed out all but $500 (I was $1250 in at one point). It's $475 now!
I bet the shares in trading platforms are booming.
I bet the shares in trading platforms are booming.
T212 has suspended new signups due to 'unprecendented demand', or rather 'no you're not jumpiing on this bandwagon, because it's upsetting our paymasters'.
HL share price is down 5% today, so no, not booming (cba to check other trading co's)
But it's January, when trading is usually in a bit of a depression. Which means bargain hunting in February 🙂
I bottled at $430 and closed out all
Not a bad option to take, I wonder if the selling infrastructure will work properly once the sell-off starts in earnest?
I wonder if the selling infrastructure will work properly once the sell-off starts in earnest?
That was my main concern - it's one thing if it crashes and I just watch it happen and choose not to sell but if eToro blocks trading or it falls too fast for sell orders to process so it's not in your control then that would be gutting
tanking now.
They normally stop trading if a share falls too fast to try and control panic / automated trading systems (eg margin calls) etc just going mad....
The Reddit servers have melted, too. Back up now.
From the latest page a few seconds ago...
Just got in for the first time. 10 shares at $275. I will ride this into the ground or into the exosphere.
Now held at 150 below 200! A wild ride indeed. 🙂
They normally stop trading if a share falls too fast to try
It's still well above the 5-day average 😀
Hold on tight!
but fundamentally Hedge funds should be allowed to say; create fake outages in a states power infrastructure to bump an energy company’s stocks,
That's not shorting and exactly the kind of behaviour that shorting corrects, they spot companies fiddling the figures, short the stock and then release a report explaining the fraud. See Muddy Waters and NMC Health.
or drive a country’s (see Puerto Rico) debt obligations and collapse its govt; those are cool, right?
What has this got to do with shorting a games retailer?
double post.
Skimming over some of the threads on reddit, it looks like they're trying to do the same to Blackberry, Nokia and AMC Entertainment. Does this not simply equate to insist trading?
Also, they're not wanting anyone to sell and hold onto what they have till next week. If next week the shares plummet they've lost money and gifted one to the "man"/hedge funds. Looking at the money to be had it would have to be a very idealistic type who doesn't cash in and profit.
I can imagine it'll work in the short term, but surely the big players will find a way of shutting down this kind of hive activity.
*price of gme has dropped significantly from yesterday. Guess that shows people are selling and cashing in.
BOIIIIIIIIING!!!!!!!!
back over 315 now, up from a low of 126 less than an hour ago!
EDIT: aaaaand on it's way down again 🙂
I think a lot of the fall currently is several trading platforms like Robinhood in the US only allowing sell orders, that's bound to drive down the price as people lose their nerve and others can't buy as drops to equalise it out. The Nasdaq also keeps freezing the stock now and again I think that's pushing people on the fence to sell.
I actually bought $500 more @ $207 and sold at $240 (I'm a lightweight), looks like they're about to go back through $300. I'm just going to play the ups and downs for now and leave the initial $500 investment there, the price movement is so large (and fast) I might be able to cover the $500 with profit so I can afford to leave that in as a middle finger to the hedge funds and not worry about getting out too late.
Ofc this isn't a whole lot different to playing roulette to try and cover a bet on a horse race but hey it's entertaining :p
Skimming over some of the threads on reddit, it looks like they’re trying to do the same to Blackberry, Nokia and AMC Entertainment. Does this not simply equate to insist trading?
I doubt they have enough fire power to hit many stocks simultaneously, unless those stocks have very little liquidity. It's completely futile long term, they might burn a few fingers in the short term, but crap companies have low valuations - that's the whole point of the market. The way to get a higher valuation is to run a better company.
GME is a bricks and mortar company in an online world, it's days are numbered. It can either slowly whither an die or transform itself. Having Reddit newbie traders boost it's stock for a few weeks doesn't help it's long term prospects. It may allow the owners / senior mgmt to cash out a load of options, but again, doesn't help the company.
Pump and dump isn't new, but using the medium of social media/Reddit to do it is.
Also, they’re not wanting anyone to sell and hold onto what they have till next week. If next week the shares plummet they’ve lost money and gifted one to the “man”/hedge funds. Looking at the money to be had it would have to be a very idealistic type who doesn’t cash in and profit.
GME is a bricks and mortar company in an online world, it’s days are numbered. It can either slowly whither an die or transform itself. Having Reddit newbie traders boost it’s stock for a few weeks doesn’t help it’s long term prospects. It may allow the owners / senior mgmt to cash out a load of options, but again, doesn’t help the company.
The point is primarily to hurt the funds that short stock not necessarily to help the business (that's just the tool they're using) or indeed make any personal wealth. Just push the short position for longer than they were mean't to go forcing them to accumulate too much interest.
I get it, but I still don't think one instance of mobilised Millennial angst, standing up to big finance will deter fund managers from shady behaviour.
I'm keeping an eye on BB and Nokia as other apparent targets, they seem to have some very similar changes in value over the last few days so I'm wondering if it's worth cynically jumping on those hype trains now assuming they'll get pumped with any gains from GME, or if the moment has really passed...
Great, now eToro have changed to sell only to as their clearing firm can't cope with the volatility (a.k.a hedge funds are paying them off to do it so they can manipulate the price whilst most of the small traders are locked out). At least some US senators are commenting on the BS that this is.
I get it, but I still don’t think one instance of mobilised Millennial angst, standing up to big finance will deter fund managers from shady behaviour.
Maybe, but it might help bring attention to an area that may need regulation. Seems rather bizarre that having such an aggressive short position is even allowed, when loses could potentially be unlimited.
This is going to cause a massive row. The only thing that sets the price of a share is the equal ability of investors to buy and sell it on a level playiing field. If a platform only allows you to sell or buy then that directly affects the price. It's blatant market manipulation in plain sight. I suspect there will be a lot of lawyers getting excited at the prospect of a huge class action against the trading platforms.
I suspect there will be a lot of lawyers getting excited at the prospect of a huge class action against the trading platforms.
Class action suit already filed.
https://www.thedailybeast.com/robinhood-hit-with-class-action-after-trying-to-shut-down-wallstreetbets-gamestop-uprising
I actually bought $500 more @ $207 and sold at $240
So how does this work? Are you buying partial shares?
The only thing that sets the price of a share is the equal ability of investors to buy and sell it on a level playiing field. If a platform only allows you to sell or buy then that directly affects the price.
Not unprecedented, markets often stop trading when they are big swings in an attempt to stabilise things. This is obviously a barking mad situation, the true* value of the company left orbit some time ago, so intervention might help bring it back....
* based on proper metrics like earnings, profits etc not how much Redditors dislike hedge funds.
At least some US senators are commenting on the BS that this is.
Not exactly a high brow bunch, some of the new ones genuinely believe in the Qanon madness and were elected on that!
So how does this work? Are you buying partial shares?
It's how robinhood and t212 work. Fractional shares, you don't need to hold a full one. In fact you don't own them at all, all you do is give the traders the money, they buy shares and promise to pay you back when you 'sell' with whatever profit/loss added.
Poor people are not meant to make money like this.
Not unprecedented
Not unprecendented to suspend a share, but I've never heard of them only suspending one side of the equation. That must be unprecendented, and is transparently fraudulent.
Maybe, but it might help bring attention to an area that may need regulation. Seems rather bizarre that having such an aggressive short position is even allowed, when loses could potentially be unlimited.
HFs know what they are doing and have risk analysts working the numbers on all their bets - which don't always pay off. This particular scenario is a new experience for them and they may have got burnt this time, but that was always a known risk. They'll be rapidly adjusting their risk analysis taking this new behaviour into account and just carry on, maybe with smaller bets until the redditors get bored.
One of the interesting things from this is there are 100,000s of new day traders who have just signed up and their first experience of trading will be loosing money on this bet (as eventually GameStore will return to it's original value). Be interesting to see how keen they are after the euphoria wears off.
Poor people are not meant to make money like this.
No one makes money buying stock in a crap company! The whole thing is just daft.
Eventually there will be 300,000 redditors owning stock in a company no one wants. The HFs will have sold out (to more redditors) and the price will crash back to earth.
A few will be lucky and time it right, but who ever is left holding the baby will realise they just have a turd wrapped up in a nappy.
That must be unprecendented, and is transparently fraudulent.
The platforms are arguing that they are protecting their new clients (100,000 signed up in one day) from collective madness buying a massively pumped stock. I have some sympathy with them over that.
From reading the FT they haven't outright banned buying the stock, you just can't buy it on credit or margin but have to put up real $, which prices a lot of people out.
And some people call Bitcoin a scam.
Etoro have been shameful over this oh and Nokia to the mooooonnnn 😉
It's nice to give hedge funds a slap until you realize it's your pension pot
Re suspensions .... GME is going into and out of volatility suspension on the NYSE many times a day.
Platforms suspending the shares is complete different and is manly down to the fact that the truly unprecedented demand for quotes/deals are overwhelming the platforms infrastructure.
Those platform have a service other clients dealing in other instruments and have decided to close shop on GME etc (but allowing you to close out your position) .... that's up to them, they'll be losing comm in GME by doing so.
Nothing stopping you buying GME around the corner.
25 odd years in the city ... had a phone glued to my ear during dotcom boom, saw plenty of action during the financial crisis (was on the desk the night lehman went pop) thought this time last year was busy.... 2021 and the last few days has blown the doors of the lot.
Grabbing some time now for something to eat and virtual parents evening before helping out for the close.
Hope my adrenaline subsides tonight and I can get to sleep before 2am for the first time this week.
Hopes n fears
Im the n
🙂
It’s nice to give hedge funds a slap until you realize it’s your pension pot
Not any of mine!
Any well run pension fund will be heavily diversified and a HF would be classed as a relatively high risk asset, so no more than a few % would be invested in it.
HFs are quite capable of loosing large sums without any help from Reddit eg Crispin Odey has lost loads recently https://www.bloomberg.com/news/articles/2021-01-06/crispin-odey-s-slump-deepens-as-hedge-fund-loses-another-30-5
From reading the FT they haven’t outright banned buying the stock, you just can’t buy it on credit or margin but have to put up real $, which prices a lot of people out.
That's not a bad thing. The proliferation of financial tools (derivatives) has a lot to answer for.
Crispin Odey has lost loads recently
Naaw, couldn’t happen to a nicer bloke.
Footflaps..
Nor mine my investments are all set to eco friendly and socially responsible. I'm almost a socialist:) It's only my spare cash fun money that I Chuck at risky stuff.
WeBull allowing buying again
GameStop and AMC jumped immediately
The Whitehouse has waded in apparently
The Whitehouse has waded in apparently
Unlikely, just more conspiracy nonsense.
Reddit is not exactly cutting edge investigative journalism.
travesty of justice
They're not saving the world, they've had their knuckles rapped for being dicks.
Naaw, couldn’t happen to a nicer bloke.
I did think exactly the same, plus his name is very similar to Odious..
The Whitehouse has waded in apparently
I would want a slightly more traceable source. Why would a codemonkey know what the boss was talking about? I would be having that call in a private room and not have it announced as "the whitehouse calling".
Its going to get messy. Got Ted Cruz supporting something AOC tweeted so I think it will get fairly political quick. There do seem to be some good reasons for them not selling but whether they are good enough will remain to be seen.
The postmortems of exactly what went on should be interesting. Why did it suddenly gain so much attention?
There do seem to be some good reasons for them not selling but whether they are good enough will remain to be seen.
Those short positions are due in this Friday, hence the not selling, and the dodgy dealings with retail trading apps. An sec fine is probably less than covering there bets will cost them.
Love STW you even saved me trailing through the reddit guff.
If Wzzz reddit post up there isn't a prime example of Russian Cyber Bots then Freddie Starr probably ate my hampster
If this is to be believed, theres still a huge amount of short exposure out there on GameStop
https://isthesqueezesquoze.com/
Robin hood saying they will allow some buying tomorrow. Should be a wild day!
