Gamestop

[Brigade77]

Already understanding most of what is happening . . . This is the most fun I have had in a long long time.

Sadly, I wasn't in on it at the beginning of the week. I might ride the next one . . . . . !

 

[Brigadier]

If I am thinking of the same thing, I heard about it on R5L a couple of days ago (IIRC).

If it is a load of "little guys" shafting "the big boys" (who are trying to shaft everyone else), good on 'em.

 

[Brigade77]

If it is a load of "little guys" shafting "the big boys" (who are trying to shaft everyone else), good on 'em.

I read one story & I have to assume it to be true, of one chap living in his car due to having lost everything to the greed of these Wall St MoFo's despite never playing the stock game in his life. Using his phone & $10's he's mightily proud to be a part of a movement that will cost these bloodsucking leeches $BILLIONS

 

[JohnD]

May be good for a laugh but the essence of being in a pump and dump is that you have to get out before the (inevitable) crash.

Don't be the Greater Fool.

Whoever's still holding calls at the end will lose the lot. It will cost the naif players "BILLIONS"

Don't assume that the pro's haven't wised up and aren't watching the boards.

 

[noseall]

This sort of thing is indicative of the power of social media and how sufficient numbers of ordinary people can influence.

I find the Wall St panic amusing. However there are dark sides like QAnon.

Every cloud..

 

[Brigadier]

It will cost the naif players "BILLIONS"

Not the little guy though.

 

[kingandy2nd]

This amused me...hopefully Simpson’s fans with appreciate it.

As has been said, there is a degree of pump and dump going on here so some of the ‘little guys’ probably are doing this for personal gain rather than out of nobility.

I read somewhere that hedge funds have shorted 140% of the entire stock volume of GameStop - which means that there’s not enough stock to honour all the shorts if no one sells their stock and they all fall due at once, but the reality is that as the price goes up folks will sell and you hit a critical point the institutional investors have enough shares being trade to meet their requirements as their calls won’t all be simultaneous. If the little guys keep buying they can prevent this, but eventually folks cash out for whatever reason and the last ones in suffer in the Ponzi.

As for the stories of folks loosing everything when trading, yea unfortunately it happens all the time. It’s not the fault of Wall St/the stock exchanges per se. Ultimately playing the market is another form of gambling, sometime you win and sometimes you lose - especially if day trading and not looking at a long term horizon. That’s the fault of the individual, who is always going to be less knowledgeable/sophisticated that the firms and funds that have been trading of decades.

As Alvin Hall once said about the stock market - don’t invest what you can’t afford to lose.

 

[sxturbo]

It wouldn't surprise me if the us government bring in new rules/laws to stop this sort of thing from happening.

I read last night (can't remember where) that the biden administration are watching closely

 

[JohnD]

It wouldn't surprise me if the us government bring in new rules/laws to stop this sort of thing from happening.

I read last night (can't remember where) that the biden administration are watching closely

It is already illegal for the professionals to do it.

 

[Mottie]

It is already illegal for the professionals to do it.

That’s you out of the game then JohnnywarrenbuffetD.

 

[mattylad]

So what happens to gamestop?
Is this gonna cause their business to fail? Or will it now take off and make all the directors multi millionaires?

I heard that there was restrictions being placed on the dealing in gamestop, that the hedge funds have called in favors and got the little players stopped from playing.

 

[Dangee]

I bought at 239 & sold at 354

 

[Mottie]

I bought at 239 & sold at 354

JohnnywarrenbuffetD will probably top that by a long way.......

 

[JohnD]

I bought at 239 & sold at 354

good to see you sold out in time. I see Mottie hasn't accused you of making it up (he sometimes does that, when he hears of somebody doing well).

The people who get caught in the collapse are going to be really really cross. I hope not too many of them borrowed to gamble.

This is Jesse Livermore. Was considered the greatest stock trader in the world in the first two decades of the 20th century.

Made a fortune out of pump and dump. It worked even when people knew he was doing it. Went bankrupt in the end and killed himself.

https://www.ft.com/content/8a483767-6b55-40a2-b8a6-1439a2f56084

"The simplest and most common form of stock fraud is the “pump and dump.” It has three parts. Someone gets hold of some cheap shares; tells lies about why they are going to rise; and when they do, sells them, before the lies are discovered and the shares fall. This is against the law.

But what if we take out the middle step — the lying? Instead of spinning falsehoods about the shares, our perpetrator shouts to anyone who will listen: “If we all buy these cheap shares, then the price will go up, and we’ll make money.”"

"The third step still has to happen, of course. When everyone sells to take profits, the shares will fall, and some people will lose a bundle. So far from denying this fact, however, our perp points it out. “This is a dangerous game,” he says, “your timing better be good.”"

As long as you can find a bigger mug than yourself, who will buy from you at an even higher price, you'll be OK. If you're holding the parcel when the music stops, not. There will always be someone at the end of the line who loses a bundle. Most often the mug punter. Unlike investing, gambling is a zero-sum game.

 

[Notch7]

its easier to make money from wealth destruction than wealth creation.


Dont bother building up a business to create wealth, just bet on other businesses failing.