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 Hedge funds vs Retail traders (Gamestop, AMC, etc) 
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Defeats all expectations
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Post Hedge funds vs Retail traders (Gamestop, AMC, etc)
Hedge funds were shorting Gamestop and AMC. Retail traders bet against them and bought the stocks in droves. Stock prices surged and forced hedge funds to liquidate their portfolios to cover the losses.

Is this a fundamental shift in stock trading? Hedge funds and insiders are no longer the major market manipulators? I am no expert on this. Why did it seem so easy to manipulate the market?


Wed Jan 27, 2021 5:31 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
It sounds to me like the hedge funds were shorting companies like Gamestop knowing that they could spread negative information about them to tank the stock, so a subreddit got together to fuck them over by buying it and making it go up like crazy instead.

Edit - After reading some more it's possible the reddit influence was overrated and it was just a stock where 85% of people were shorting it, so as soon as it starts going up there is a snowball effect of people jump off the shorting train the same way that a stock that's too high could crash if people start selling it. But reddit could have had something to with starting that.

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Wed Jan 27, 2021 5:48 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
When retail traders band together, they can force the hand of Wall Street sellers.


Wed Jan 27, 2021 7:36 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
I had 100+ shares of GME that I sold back in September for $7.70 ... Not sure I’ll ever forgive myself for that.

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Wed Jan 27, 2021 11:47 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Too late on the GameStop surge. And don't really want to risk going in on AMC even though it's not a "bad" price.

I did, however, go invest in Nokia today. *Fingers crossed*.

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Thu Jan 28, 2021 1:22 am
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
My Nokia order was canceled, and you can't search for or even trade GME, AMC, NOK, etc. this morning on a growing list of brokerages.

So much for that? I really don't have a lot of knowledge in this area, but this seems really, well, manipulative to prevent millions from participating in the market.

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“Gods are great ... but the heart is greater. For it is from our hearts they come, and to our hearts they shall return.”
"Paper is dead without words / Ink idle without a poem / All the world dead without stories."
“There are three things all wise men fear: the sea in storm, a night with no moon, and the anger of a gentle man.”
“You have to pretend you get an endgame. You have to carry on like you will; otherwise, you can't carry on at all.”


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Thu Jan 28, 2021 10:56 am
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Defeats all expectations
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Corpse wrote:
My Nokia order was canceled, and you can't search for or even trade GME, AMC, NOK, etc. this morning on a growing list of brokerages.

So much for that? I really don't have a lot of knowledge in this area, but this seems really, well, manipulative to prevent millions from participating in the market.


Yeah, many brokerage firms restrict clients from buying those stocks. Retail traders on Robinhood can only hold or sell. That's manipulative.

AOC tweeted this:



Thu Jan 28, 2021 12:59 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Wow, this is some bullshit. I’d be really upset even if I had no money at stake. Blatant market manipulation to steal from the poor and give back to the billionaires. Just like the real Robin Hood ... wait is that how the story went?

Im gonna cash out of that app as soon as possible. Who hasn’t halted buys on these stocks?

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Thu Jan 28, 2021 1:54 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Even the larger brokers suspended trade on them earlier.

I had some shares in Build A Bear (don't judge me! :-P) from a couple days ago (before its much more modest surge) that I sold part way into its price dropping a lot this morning as well after being halted numerous times...

I was trying to "hold the line", but rather turn a tiny profit versus a loss. I'm no financial wizard at this.

The fact they can do this to individual investors is indeed bullshit.

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“Gods are great ... but the heart is greater. For it is from our hearts they come, and to our hearts they shall return.”
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“There are three things all wise men fear: the sea in storm, a night with no moon, and the anger of a gentle man.”
“You have to pretend you get an endgame. You have to carry on like you will; otherwise, you can't carry on at all.”


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Thu Jan 28, 2021 2:44 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Flava'd vs The World wrote:
I had 100+ shares of GME that I sold back in September for $7.70 ... Not sure I’ll ever forgive myself for that.


That would've been about $25k if you sold now. It's money, but not worth living in permanent regret over. If you had had 10,000 shares, on the other hand....

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Thu Jan 28, 2021 4:27 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Barrabás wrote:
Flava'd vs The World wrote:
I had 100+ shares of GME that I sold back in September for $7.70 ... Not sure I’ll ever forgive myself for that.


That would've been about $25k if you sold now. It's money, but not worth living in permanent regret over. If you had had 10,000 shares, on the other hand....
Eh its not just the free money but missing out on the train. I downloaded Robinhood earlier in the year as a practical idea, trying to invest my money before I spent it all, but what I did not expect (and what many others are discovering this month) is that trading stocks is very fun and gives a huge rush, more comparable to gambling on sports than starting a retirement fun. So while having an extra $100,000 would be nice (im still thinking it hits $1000) , being a part of this wall street revolution would be a priceless memory.

I bought back in at about $280ish (only 3.5 shares though.) Gimme some scraps please. Lets goooooo.

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Thu Jan 28, 2021 6:45 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
What happened today:


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Thu Jan 28, 2021 6:49 pm
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Defeats all expectations
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Trading and gambling could get people anxious and drain up the spirits if they're too emotionally involved. Have a plan to limit losses. These stocks are good for short-term trades only. Prices increased so much all because of the crowdsource-type buying and the subsequent short squeezes. They will probably come down eventually. So enjoy the ride while the tide is right.


Thu Jan 28, 2021 8:52 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
i.hope wrote:
Trading and gambling could get people anxious and drain up the spirits if they're too emotionally involved. Have a plan to limit losses. These stocks are good for short-term trades only. Prices increased so much all because of the crowdsource-type buying and the subsequent short squeezes. They will probably come down eventually. So enjoy the ride while the tide is right.


Now thinking from the angle of Main Street vs Wall Street, this trading activism might be able to sustain the price momentum longer than I previously thought.



And the Robinhood CEO explains (or try to):



He said the buying restriction was due to fluctuating financial requirements such as the SEC net capital and clearing house deposits in the face of market volatility and concentrated activity in some stocks.

*Robinhood was not the only brokerage firm that restricted trading today.


Thu Jan 28, 2021 9:49 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
The fluctuating explanation, or argument, doesn't really hold up when comparing this to the crash in 2008. Why not halt selling during that mess to "protect" customers? There was seemingly no cause of concern for any customers back then to my knowledge...

Again, no expert, but it's pretty shady, and one that both Dems and Reps seem to be interested in looking into now. There are also lawsuits that have been filed against Robinhood in particular, which, I believe, was the first to suspend trading before the markets opened this morning.

It's even more shady now that Robinhood has said they'll allow "limited" trading tomorrow.

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Demon Slayer: Kimetsu no Yaiba - TV

“Gods are great ... but the heart is greater. For it is from our hearts they come, and to our hearts they shall return.”
"Paper is dead without words / Ink idle without a poem / All the world dead without stories."
“There are three things all wise men fear: the sea in storm, a night with no moon, and the anger of a gentle man.”
“You have to pretend you get an endgame. You have to carry on like you will; otherwise, you can't carry on at all.”


Wakanda Forever


Thu Jan 28, 2021 10:10 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Yeah if they really wanted to protect their customers they would have halted everything. This was 100% because their parent company also owns one of the big hedges that got fucked.

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Thu Jan 28, 2021 10:19 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
I’m just learning about this and am starting to freak out over the ramifications. Besides possibly triggering overall stock market crash, if these most powerful institutions and people are losing mass amounts of money, SIPC may not be able to cover the insurance of multiple brokerage firms going under.

Internet censorship will become an even greater thing. After they successfully suppressed the voice of Trump supporters, they will likely do the same to these market manipulators, along with anyone who dare threaten the interests of the rich and powerful.


Fri Jan 29, 2021 12:12 am
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Everything is about Trump supporters and Biden controlling things, I feared this will be the way of thinking going forward and its not a right way to live for next 4 years...ugh. People just assume that their choice of president just cannot/didn't make any mistakes at all.


Fri Jan 29, 2021 12:20 am
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
HOLD! DONT SELL! AMC/GME

ITS GOING TO THE MOON MONDAY!!!!

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Fri Jan 29, 2021 3:06 pm
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Defeats all expectations
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Remember hedge funds and the big guys can use social media and "crowdfunding" stocks to their advantage too!


Fri Jan 29, 2021 3:28 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
I'M ALREADY PLANNING MY YEAR LONG VACATION!

#AMC #GME #TOTHEMOONBABY!!!!

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Fri Jan 29, 2021 3:42 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Rev wrote:
I'M ALREADY PLANNING MY YEAR LONG VACATION!

#AMC #GME #TOTHEMOONBABY!!!!


Nothing prevents you from making it a decade! ;)


Fri Jan 29, 2021 4:26 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
i.hope wrote:
Rev wrote:
I'M ALREADY PLANNING MY YEAR LONG VACATION!

#AMC #GME #TOTHEMOONBABY!!!!


Nothing prevents you from making it a decade! ;)


:thumbsup:

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Fri Jan 29, 2021 4:33 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Alex Y. wrote:
I’m just learning about this and am starting to freak out over the ramifications. Besides possibly triggering overall stock market crash, if these most powerful institutions and people are losing mass amounts of money, SIPC may not be able to cover the insurance of multiple brokerage firms going under.

Internet censorship will become an even greater thing. After they successfully suppressed the voice of Trump supporters, they will likely do the same to these market manipulators, along with anyone who dare threaten the interests of the rich and powerful.


The government regulating the stock market to protect the hedge funds (as Warren basically asked for today) would be bad, but it might be worth it for left wing and right wing populists to be united against whatever elites oligarchy thing is going on right now

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Fri Jan 29, 2021 5:05 pm
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Post Re: Hedge funds vs Retail traders (Gamestop, AMC, etc)
Alex Y. wrote:
I’m just learning about this and am starting to freak out over the ramifications. Besides possibly triggering overall stock market crash, if these most powerful institutions and people are losing mass amounts of money, SIPC may not be able to cover the insurance of multiple brokerage firms going under.

Internet censorship will become an even greater thing. After they successfully suppressed the voice of Trump supporters, they will likely do the same to these market manipulators, along with anyone who dare threaten the interests of the rich and powerful.


If you care about Trump and market manipulation, the possible link between Trump touting hydroxychloroquine, financially troubled Kodak getting a $765 million government loan to produce film drug chemicals(!), and the hugh surge in Kodak's stock price on the loan announcement is something to look into.

https://www.citizensforethics.org/reports-investigations/foia-requests/hydroxychloroquine-trump-admin-huge-kodak-loan/


Fri Jan 29, 2021 5:23 pm
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