WSB vs Wall Street / Gamestop Stock and others blown up by Subreddit

tombombadil said:
I followed GME for the humor. And I've always known how bad the system is. But the way they flaunt the rigging in your face these days, disgusts me.

Today I just saw a NASDAQ company that was making record profits, beat expectations, growth across all sectors, guiding higher for foreseeable future. This share dipped almost 10% over 2 days. Not one mention of the earnings news on ANY finance portal. All news outlets shared the same narrative. They all only talk about MSFT. "MSFT blows expectations, everyone else disappointed, like Boeing". Needless to say, MSFT rocketed and this stock tanked. I had to go to a tech website to find news about it. And after 2 days, the only news that came out about this share was one that talked about the share being below the buy point (this news came out before it dropped below the buy point) and therefore is not a "Buy". Pre market also saw this share dip almost 2 dollars in one go. Both days. Why? The motherfecking shorts, that's why. Up to 20% of trading for the day, the last few days were shorts.

I see how every news outlet writes gush pieces about Melvin, "he's a good guy", "honest, hardworking", yada yada, nevermind the fact he just tried to crash a still viable company and cost a lot of people their jobs in order to make a lazy buck. All this while news outlets also kept talking shit about GME. I see the whole blocking buys and only allowing sales garbage from Robinhood and all the portals. I see hedge funds and market movers literally talking about protecting their hedges shamelessly as if that is not a literal crime. I see news media blaming the crash the day before due to "markets spooked by retail frenzy".

Then I see other shit like how one "5 star" analyst claims Intel is a buy now that they have a new CEO and that will turn things around and is bad for AMD. Then a couple of days later, after Intel stock had rallied to a peak, this same analyst talks about how there is uncertainty that Intel will turn things around with new CEO, as any changes will take more than a year to take affect. Needless to say, the shares also tanked.

The sheer amount of manipulation that goes on is disgusting.

On paper, they make it look and sound good. "protect people" etc etc yada yada.

But dig deeper and you realise conflicts of interest. E.g. Citadel having an incentive to profit from order flows. Citadel having an interest in Melvin.

https://www.vice.com/en/article/qjp...-funds-like-citadel-its-users-are-the-product

The whole concept of "market movers" needs regulation. The whole of wall street needs regulation. Shorting more than 100% of available float? Seriously?

The table is tilted, folks. The game is rigged. It's a big club, but you're not in it.
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The part in bolt is what it amazes me. Are you allowed to buy 140% of a company? no is not possible, you run out of stocks. then how the feck you can short it at more than 100%?

Stock markets should be forbidden. Money should be invested in building real companies, not speculation in the ones that exist in a second hand market
 
4bars said:
The part in bolt is what it amazes me. Are you allowed to buy 140% of a company? no is not possible, you run out of stocks. then how the feck you can short it at more than 100%?

Stock markets should be forbidden. Money should be invested in building real companies, not speculation in the ones that exist in a second hand market
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I know what you mean. There should be limits to how much a stock can be shorted or borrowed. It's like the sub prime mortgage crisis all over again. Wall street needs to be taught a lesson and regulated.
 
I think it was Marx that once said "To bring about the revolution against the capitalist class.......GME TO THE MOON BBY

Pretty sure that was the opening chapter in Capital
 
Revan said:
CEO of Interactive Brokers just said in CNBC that they stopped trading to prevent short squeezing and to protect the market. You cannot make this shit up, they even stopped pretending that they are playing by the same rules.
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So the most rational explanation doesn't have to be the most likely one?

@11101 :)
 
just put in a substantial order on blackberry almost as a bet
 
Which company is best for someone to start trading from England?

I would like to get in on some of the action.
 
Suedesi said:
Isn't that par for the course when you hit a "Market Order" vs a "Limit Order" - you're at the mercy of getting your trade done at whatever level the liquidity provider fills it at?

I don't think they shut things down because they couldn't guarantee best execution for their customers - they don't give a fück about that* - I think RH has a liquidity problem and might be insolvent; so they fecking railroaded their customers instead.

*EDIT: https://www.cnbc.com/2020/12/17/sec...ading-customers-about-how-it-makes-money.html
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Both, in these cases. Everything goes through the third party and is subject to the restrictions that come with that.

Re RH: That's what you get with a zero fee model, they have to make money somehow, and it's in the spreads. In the news this morning that they have taken out $1b finance overnight to protect themselves. I think that gives you the insight into why they stopped the trades. They couldn't cover the collateral.

Revan said:
Good PR.

A couple of questions:

1) If they care about users risks and won't let me do stupid things, why they allow me to take my life savings and put them all in options that expire next week?

2) If it was only that they just couldn't guarantee that things will go well cause they don't have direct access to stock exchange, why Merrill (essentially BoA' investment part) did the same?
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1) They wont. They ask you a bunch of questions about your financial position when you open an account. You're welcome to lie, of course.
2) I don't know each individual case, just giving an overview of how these platforms actually work in amongst the memes and twitter feeds. Maybe they felt there was too much risk for them or their customers?
 
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11101 said:
Both, in these cases. Everything goes through the third party and is subject to the restrictions that come with that.

Re RH: That's what you get with a zero fee model, they have to make money somehow, and it's in the spreads. In the news this morning that they have taken out $1b finance overnight to protect themselves. I think that gives you the insight into why they stopped the trades. They couldn't cover them.



1) They wont. They ask you a bunch of questions about your financial position when you open an account. You're welcome to lie, of course.
2) I don't know each individual case, just giving an overview of how these platforms actually work in amongst the memes and twitter feeds. Maybe they felt there was too much risk for them or their customers?
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I wrote a lengthy response on the stonks thread - I think they couldn't post margin to NSCC
 
So it looks like most are allowing limited trading today. I assume that means they've ring fenced limited liquidity to the meme stocks?

Even that sounds fecking dodgy.
 
Suedesi said:
I wrote a lengthy response on the stonks thread - I think they couldn't post margin to NSCC
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Yeah, they couldn't cover the collateral requirements. An even simpler explanation. Some brokers just pass orders through directly to the executing broker/provider and use their balance sheets, seems RH doesn't.
 
rcoobc said:
I love how redcafe changed his name.

Okay so it is him. And is there an original post where he explains what he is doing and how he noticed what is going on?
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It`s apparently this guy (from summer last year):



Kind of crazy to watch this now haha.
 
What are people's views on Trading 212. It seems a good choice if you keep to lower than 80K pounds. As it seems you are protected up to that amount.
 
Andy_Cole said:
I use Hargreaves Lansdown.
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Neo_Mufc said:
A friend recommended IG. Is that any good too?
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Andy_Cole said:
A lot of friends use IG. HL has a good app, interface. Think it’s pricey with commission though. I’m sure either is a good option.
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I use HL but without much due diligence on platforms.

From what I gather it's fine for funds but not for single stocks, due to pricey commission. Compare with other platforms if you dont want to be hit on commissions for single stock investments
 
fergieisold said:
So is this over now? Missed any opportunity to buy into this I presume? Looking at the chart it has tanked massively.
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I hope not, I put in a fair bit on GME and Naked and am down 50% :lol:
 
VP89 said:
I use HL but without much due diligence on platforms.

From what I gather it's fine for funds but not for single stocks, due to pricey commission. Compare with other platforms if you dont want to be hit on commissions for single stock investments
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IG want proof of income and savings to continue my application which I don't necessarily want to provide.
 
Pre-market having nice openings for all meme stocks except Nokia. GME opens at 460, AMC at 13, BB at 18.

If buying stocks will be allowed, I think they all are going to do well.
 
Surely these hedgefunds aren't guaranteed to buy EVERYBODYS stock when they have to pay back right?

It seems people are expecting a guaranteed payment at the highest share price, but what if they cover what they have to buy back - then what happens to the remaining shares? an absolutely huge crash right?

I know they shorted 140% - but since so many people have been buying in I assume new shares have been allocated since?
 
Adam-Utd said:
Surely these hedgefunds aren't guaranteed to buy EVERYBODYS stock when they have to pay back right?

It seems people are expecting a guaranteed payment at the highest share price, but what if they cover what they have to buy back - then what happens to the remaining shares? an absolutely huge crash right?

I know they shorted 140% - but since so many people have been buying in I assume new shares have been allocated since?
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End-game scenarios:
  1. Rush to the exit. Retail investors start to sell - the price crashes hard in the space of minutes and those who wait too long or aren't able to execute lose their money.
  2. Into the index. Retail investors stubbornly buy and hold pushing the price up enough that it gets included on the S&P500, obliging passive index funds to buy in huge quantities which allows investors to exit at a profit.
  3. Infinite short-squeeze and end of capitalism. Retail investors all buy and hold the stock indefinitely, triggering an infinite short squeeze, busting all the short hedge funds, and cascading into bankrupting the clearing houses and other counter-parties.
  4. Regulatory intervention. The government steps in and suspends all trading on the stock for a month due to systemic risk and intentionally pops the bubble and allows the shorts to cover.
What am I missing?

EDIT:
5. Gamestop direct lists a load of new stock to raise capital, diluting existing investors and bringing the share price down.
6. Gamestop somehow capitalises on this publicity to come up with a new product or business model that justifies the ridiculous stock price.
 
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GameStop is too expensive for me. Planning to buy a few AMC stonks.
 
Neo_Mufc said:
Which company is best for someone to start trading from England?

I would like to get in on some of the action.
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I use AJBell Youinvest. Cheaper than Hargreaves iirc.
 


:lol: It's sure is funny but these guys are investing way too emotionally now and will get slaughtered
 
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