Gamestop stock situation

[SOUL]

16 minutes ago, Forestluv said:

I'm sure there were some regular people in need that got lucky, got in early and made some good money. Yet for every one of those people, there will be 5 regular people that got in late and get screwed. There are people in need that invested yesterday in hope of making some money to survive. They invested the little money they have and are now getting screwed as the price crashes. The guy you knew may have walked away with his profits. Yet those in the game (both hedge fund managers and small time game traders) are selling and shorting to those that came late to the party and stealing their money. 

I agree there are likely people who don't understand what's happening and think they can cash in on something they aren't fully informed on. This is a disheartening outcome to people who may not be prepared for it and aren't in a position to rectify it.

Although, part of the establishment manipulation that is going on to harm some of these individual traders is halting BUYING of the stock, which would raise the price and may have those people to see a gain but allow hedge funds to SELL the stock.

Some may think to themselves how can someone sell stock that people can't buy? That's not how the market works! Well, in this circumstance hedge funds shorted stock that didn't exist to profit on the demise of the company so they don't need buyers to close positions.

So they prevent the price to raise by blocking individual traders buying real stock so hedge funds can close positions on 'imaginary' stock to limit losses....and if they can suppress the price enough before the option matures maybe erase the unrealized loss before it's due.

As those individual traders sell their stock to realize their gains because they are still permitted to do so this will also help the hedge funds recoup unrealized losses before it's too late as it all adds to the devaluation of the stick price.

Let's just hope the more vulnerable individual traders do it to take their small gains or small losses before the complete tanking of the price after the options mature and all the shorts have to be closed since many of them aren't real buy/sell trades, they are imaginary ones.

I'm not an expert in this so I may not be fully informed of every aspect of it but this is just from my current understanding which may or may not be accurate admittedly.

Edited January 28, 2021 by SOUL

[Forestluv]

12 minutes ago, Jennjenn said:

 

Temporarily preventing people from buying GME stock at the peak is actually a good thing because it protects them from getting screwed. The short-squeeze is mostly over. The hedgefunds have already been screwed as they covered during the rising share price. The party is over. Anyone buying GME stock now will likely take huge losses. 

The bigger questions for me is if hedgefunds will try to do this earlier, before a group of day traders force a short squeeze. As well, will hedge funds get bailed out for their losses. Will day traders who made a 500k+ be forced to surrender some of their profits?

[Forestluv]

2 minutes ago, SOUL said:

Although, part of the establishment manipulation that is going on to harm some of these individual traders is halting BUYING of the stock, which would raise the price and may have those people to see a gain but allow hedge funds to SELL the stock.

Who is protected depends on the timing. If GME buying was halted last month, that would have protected the hedge fund managers. Yet if GME buying is halted now, it protects regular people from buying over-priced shares after a short squeeze. It looks like the short-squeeze is over. Regular people getting in now would get screwed over by hedgefunds and day traders that are now selling and shorting the bubble. 

[SOUL]

2 minutes ago, Forestluv said:

Temporarily preventing people from buying GME stock at the peak is actually a good thing because it protects them from getting screwed. The short-squeeze is mostly over. The hedgefunds have already been screwed as the covered during the rising share price. The party is over. Anyone buying GME stock now will likely take huge losses. 

The bigger questions for me is if hedgefunds will try to do this earlier, before a group of day traders force a short squeeze. As well, will hedge funds get bailed out for their losses. Will day traders who made a 500k+ be forced to surrender some of their profits?

It wouldn't be a 'top' if the demand to buy was still there and the buyers are allowed to buy, a manipulated catch 22 done by the apps. I just wonder if there is no buying of real stock permitted then how can those individual investors sell what they currently hold?

The hedge funds with their imaginary shorts can close those positions by the time the options expire but the people with current unrealized profits may be prevented to realizing those profits if there is no buying of the real stock allowed.

This is one of the reasons for the class action lawsuit undoubtedly.

[SOUL]

6 minutes ago, Forestluv said:

Who is protected depends on the timing. If GME buying was halted last month, that would have protected the hedge fund managers. Yet if GME buying is halted now, it protects regular people from buying over-priced shares after a short squeeze. It looks like the short-squeeze is over. Regular people getting in now would get screwed over by hedgefunds and day traders that are now selling and shorting the bubble. 

Options expire by Friday so it isn't completely over and there has been some murmurings that regulators might even give them a longer grace period to save them from their own greed. If they do would they do the same for individual investors? Hmm

Edited January 28, 2021 by SOUL

[Jennjenn]

1 minute ago, Forestluv said:

Who is protected depends on the timing. If GME buying was halted last month, that would have protected the hedge fund managers. Yet if GME buying is halted now, it protects regular people from buying over-priced shares after a short squeeze. It looks like the short-squeeze is over. Regular people getting in now would get screwed over by hedgefunds and day traders that are now selling and shorting the bubble. 

Well explained. You’re educating me right now and I appreciate it. 
Question, then why is AOC, the whole squad, the Lincoln project and many others,  even the horrible Ted Cruz, are so upset by what robinhood is doing? 
they’re even calling for robinhood to change its name. 

 

[SOUL]

5 minutes ago, Jennjenn said:

Well explained. You’re educating me right now and I appreciate it. 
Question, then why is AOC, the whole squad, the Lincoln project and many others,  even the horrible Ted Cruz, are so upset by what robinhood is doing? 
they’re even calling for robinhood to change its name. 

 

Well, it's not as clear cut as protecting regular people from themselves, I added some other aspects of it in my response to them you may also consider.

[Forestluv]

3 minutes ago, SOUL said:

It wouldn't be a 'top' if the demand to buy was still there and the buyers are allowed to buy, a manipulated catch 22 done by the apps. I just wonder if there is no buying of real stock permitted then how can those individual investors sell what they currently hold?

These are manipulated prices. To go higher would mean even more short sellers cover or new people come in and buy an overpriced stock (relative to a shitty GameStop company that will go bankrupt). The price has increased by something like 10,000% which suggests a lot of short sellers have already covered. If there are still a lot of short sellers left, I'd be cool with leaving it open and continuing the short squeeze. Yet then who is left holding the bag of $700 / share GME when GameStop continues to degrade into bankruptcy? When GME goes BK, the share price goes to zero. 

6 minutes ago, SOUL said:

Options expire by Friday so it isn't completely over and there has been some murmurings that regulators might even give them a longer grace period to save them from their own greed. If they do would they do the same for individual investors? Hmm

The bigger Shorts have the finances to hold out, yet there were a lot of shorts that got wiped out and had to sell before going bankrupt. 

If my memory serves correct, shorts are forced to cover if they don't have the money to cover the losses in their account. Yet that may just be for small day traders. There may be exceptions for bigger players. 

[Forestluv]

9 minutes ago, Jennjenn said:

Well explained. You’re educating me right now and I appreciate it. 
Question, then why is AOC, the whole squad, the Lincoln project and many others,  even the horrible Ted Cruz, are so upset by what robinhood is doing? 
they’re even calling for robinhood to change its name. 

It's a really bad look for hedge funds and the big players. It's revealed their corruption. They are willing to steal money from the little guy, yet are unwilling to allow the little guy to steal from them using the same game. Even traditional republicans believe that if hedge funds take risks, they should be exposed to both profits and losses. 

My hunch is that the big players are still holding some shorts and are underwater. They may want to limit their weak position and delay so they can get some type of special treatment for their short options and bailed out on losses. Yet the strong position for the little guy was back when GME was under $20. There may still be some opportunities to profit, yet at $200+ per share it's a very different scenario and is now much riskier for the little guy. You need to get in early for this type of thing. 

[SOUL]

41 minutes ago, Forestluv said:

These are manipulated prices. To go higher would mean even more short sellers cover or new people come in and buy an overpriced stock (relative to a shitty GameStop company that will go bankrupt). The price has increased by something like 10,000% which suggests a lot of short sellers have already covered. If there are still a lot of short sellers left, I'd be cool with leaving it open and continuing the short squeeze. Yet then who is left holding the bag of $700 / share GME when GameStop continues to degrade into bankruptcy? When GME goes BK, the share price goes to zero. 

The bigger Shorts have the finances to hold out, yet there were a lot of shorts that got wiped out and had to sell before going bankrupt. 

If my memory serves correct, shorts are forced to cover if they don't have the money to cover the losses in their account. Yet that may just be for small day traders. There may be exceptions for bigger players. 

I was surprised to hear that hedge funds could short exceeding the amount of real stock that actually exists but am not surprised they do stuff like that to manipulate the market for their benefit at the expense of others.

Learning they can do this leaves me wondering many things about the influence and effect of that on the market as well as who permits it, who enables it and by what process it takes place. It doesn't seem fair that a fund can short stock exceeding the amount of real stock existing.

The thing is there are many other stocks that are currently being shorted in this way and even establishment traders have engaged in short squeezing as well so this isn't unprecedented circumstances apart from who is doing the squeezing,

Will it continue to happen or will the retail trading apps block individual traders from doing it again and will they allow institutional traders to do it while they block the retail traders from doing it? It will be interesting to observe how it plays out.

Edited January 28, 2021 by SOUL

[abrakamowse]

 

[abrakamowse]

 

[North Sea]

5 hours ago, Leo Gura said:

That doesn't matter.

These day traders are no heros. Daytrading is scum itself.

It's like you are cheering a bunch of rapists to rape a bunch of murderers and calling that justice.

Comparing this with rape, really? 

In most people’s ethical books a daytrader is better than a guy who’s purpose is to convince people that they imagined their own family.

Thanks for telling us we are scum if we try to make money off these corporations.  If that makes me scum then im a fucking scum and you can suck my dick with your demonising. And no you don’t have to ban me for that comment because I’ve seen now that Actualized.org doesn’t fit with my values.  This is my last post.

Thanks for your help with all your content and good luck in life. Just know that you are a hypocritical hater. 

Edited January 28, 2021 by North Sea

[riskyshrimp]

@Leo Gura

Hi, Ive just discovered your channel on you tube and want to thank you for opening a door. Your videos have helped alot and just want to say thanks.

[Leo Gura]

29 minutes ago, North Sea said:

Comparing this with rape, really? 

In most people’s ethical books a daytrader is better than a guy who’s purpose is to convince people that they imagined their own family.

Thanks for telling us we are scum if we try to make money off these corporations.  If that makes me scum then im a fucking scum and you can suck my dick with your demonising. And no you don’t have to ban me for that comment because I’ve seen now that Actualized.org doesn’t fit with my values.  This is my last post.

Thanks for your help with all your content and good luck in life. Just know that you are a hypocritical hater. 

Triggered much? Check those survival biases.

If hedge fund managers are scum, then so are daytraders. I know it's not what you want to hear since you have drunk from the devil's cup and wish to continue doing so without any moral qualms. But hey, that's exactly what "elites" do.

Yes, you are a leech for trying to make money this way, yet you want to believe it is noble. I don't judge you per se, it is you who judges these hedge funds and corporations to justify your leeching. I'm simply pointing out your biases and hypocrisy.

If you're going to be a leech, at be honest about it on this forum. Don't bullshit us. I understand that God created leeches and leeches gotta eat too. But forum is supposed to be a no-BS zone.

"It is difficult to get a man to understand a thing when his job depends on him not understanding it." -- Upton Sinclair

If our government was functioning properly, hedge funds, daytrading, shorting, and market manipulation would all be felony charges.

[smurf88]

I don't get the judgment about daytraders. Trading is not about stealing but entering in a voluntary competition. It's not immoral to win at a game of chess as long as you're playing by the rules. When someone breaks the rules and gets caught (e.g. naked shorting) they are expected to lose the game.

It should be clear to anyone getting involved with such a game that they can lose all their money.

[UDT]

@smurf88  Yea daytraders are fine, the problem is the naked shorts dont lose because media and brokers unite against the bet here at the moment. 

If we are more selective then leo is ofc right, but then pls also handcuff the monsanto secretary etc. 
If we say hey its a free market then hedge funds are just market participants with nukes vs market participants with sticks and stones, you can probably regulate it somehow but dont ask me how. 

If government was functioning properly, we would all be in paradise

[Preety_India]

I saw Ted Cruz agreeing with AOC on this. 

 

[abrakamowse]

22 minutes ago, Preety_India said:

I saw Ted Cruz agreeing with AOC on this. 

 

They posted it on twitter...

:-)

 

Edited January 28, 2021 by abrakamowse

[Preety_India]

Just now, abrakamowse said:

They posted it on twitter...

:-)

That's interesting.