We should probably pay attention to this and start exploiting it instead of fighting each other. Start saving cash or blowing it on gamestop stocks
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I wrote this earlier to try and explain this whole thing to some friends, full disclosure I have money in it already. Obviously I’m not a financial expert by any means (and this is not investing advice™ ), and I definitely missed some stuff, but I figure it might be useful as an explanation for everybody here since I haven’t actually seen anything go into it too much.
With stocks you can do something called shorting, which is where where you think that a stock is going to go down, and what you do then is borrow shares from a broker for their current price, sell them, and at a specified date you buy the same amount of shares up and give them back to the broker, and you keep the difference. If the stock goes down, you make money, if it goes up however you can eat it big, because there’s technically no limit to how high a stock can rise. This is where the magic comes in.
Right now $GME, our beautiful GameStop, has a short interest of over 100%, which means its being shorted for more shares than are available for sale. This is because GameStop is yknow GameStop and it went down to $5 over the summer, and a couple Wall Street firms shorted them a bunch back then. Since the stock is going up so much, they’re gonna get absolutely screwed when the shorts come in, which should be happening sometime on Monday and Tuesday of next week.
The last piece of the puzzle is a bunch of nerds on WSB refusing to sell their stock to the firms so that they can cover their shorts (give the stock broker the shares that were shorted), which creates a positive feedback loop of spiking the stock price. Remember, those firms have to cover those shorts, their assets can literally be seized otherwise, and if nobody wants to sell, then they have to offer more money. It’s like offering to pay somebody on the street more and more money for the shirt on their back until you finally offer them $1000 and they give it to you. This situation is called an “infinite short squeeze,” and as long as people keep holding it should keep going up, and lord knows they’re going to keep holding.
What you might need to on your end, if you’re still interested in our modern day robin-hood tale, is buy some $GME for as low as you can, preferably on opening on money or a dip otherwise, and hold on to it for as long as possible while the price rises. WSB seems to think it could go as high as $1000, take it with a grain of salt, but also keep that in mind when you’re deciding the price you want to sell at. I’d recommend holding for as long as possible as it goes up, since it’s usually better to sell too late after the peak than too early and completely miss it, but you know your situation better than I do.
There are a few possible pitfalls in all of this. GameStop could issue more stock and ruin the short squeeze, people might sell too early before it can reach a number that’s truly crazy, and probably some pmore that I don’t remember, but even so it’s still looking pretty good for it.
In conclusion, money is fake anyway, Marx day traded so don’t feel bad, don’t gamble more than you can afford (because it is gambling lol), and don’t say I didn’t warn you. It’s probably too late in the game to make millions of dollars like some people on WSB, but definitely still time to put a good dent in some debt you might have and maybe have a bit left over for some mutual aid, who knows. 💎🤲🚀🚀🚀
e *GME
No, don't advise people to trade. It is gambling and gambling addiction is real. Seen too many "experts" get fucking wrecked because of this shit. It's not worth it.
shits too stressful and I want to just see everyone lose all their money not make money. 📉
Yeah you’re probably right, I tried to be as informative as I could about it, but I’d be lying if there wasn’t some bull bias in there. Maybe I’m naive, but I’d like to believe that the average chacha user has a good enough head on their shoulders to be smart about it.
Isn't it $GME?
Edit: you're also forgetting the whole Ryan Cohen thing and that a contingent on WSB are also holding long (sell the squeeze and buy back when it normalizes) because apperantly the fundementals are good. Also I saw a WSB post about how $GME is also on an artificial float, that is that all the shares everyone is playing with are actually fake shares that are still true shares but still fake non issued shares? I don't know I'm kinda dumb.
It's all fake mumbo jumbo if you ask me but if anyone here can make money then I'm happy for you comrades.
Yeah it totally is $GME. I mostly just wanted to explain the “mechanics” of it, but you’re right about the long play, at least in WSB’s opinion (I told you I was missing some stuff). Honestly I’m a little more skeptical about the long term, Cohen isn’t guaranteed to strike gold just because he’s been successful in the past, I mean it’s GameStop. Then again who knows, I can’t read the bones that well.
So any predictions on how the government will step in to ensure these big firms don’t suffer any consequences once WSB pulls off their prank? We should all know better than to think that the capitalists will ever be allowed to suffer while the state is there to protect them
Honestly I have no idea, I’m the wrong person to ask. I’ve heard some murmurs that maybe the SEC will put in more restrictions for retail traders? Like not being able to use options, don’t really know otherwise.
I’ve just been using the Robinhood app and that’s worked fine for me. It’s legit and everything, there is an approval process for setting up an account that can supposedly take some time, mine was almost instant so I’m not really sure. Not gonna post my referral code either because that just seems scummy and really I just want to keep people informed anyway.
nah seriously that sounds like self promotion and makes me feel kinda dirty thinking about it, also I don’t wanna get banned
Robinhood has some predatory practices, I'd go with another brokerage like WeBull.
Doesn't etoro only do crypto? I only got in a while ago so don't look at me too much for advice but I'd go with a much more reliable and old brokerage; maybe Schwabb. I'd reccomend this guide .
Download the Robinhood app and make an account. It’s super easy i even got approved for options despite not knowing how to do them. I bought a bunch around 40 and am planning on selling enough to cover my initial expense at opening because it’s at 90 now. The rest I’m holding with iron hands.
Right now $GME, our beautiful GameStop, has a short interest of over 100%, which means its being shorted for more shares than are available for sale. This is because GameStop is yknow GameStop and it went down to $5 over the summer, and a couple Wall Street firms shorted them a bunch back then. Since the stock is going up so much, they’re gonna get absolutely screwed when the shorts come in, which should be happening sometime on Monday and Tuesday of next week.
I'm with you until this part. What do you mean by "being shorted for more shares than are available for sale"? I don't understand how this is possible.
Let's say GameStop only has 100 shares. In this example how would it all work?
I’ll try and explain as best I can to my understanding, but as always I’m no financial professional.
So, going with your example, let’s say at around June of last year, GameStop had its astronomically low share price of about $5, and some Wall Steet Firms (Melvin Capital) shorted it for let’s say, 75 shares. To do this, Melvin borrows those 75 shares at their current price of $5 dollars from a broker and sells them on the market. If the stock goes down, they get to buy those 75 shares back for less than they paid for them, and after selling them back to the broker they would earn a profit. If the stock goes up though, they still need to give those 75 shares they borrowed back to the broker, losing money in the process.
Back around the same time in June, WSB caught wind of this whole short scheme and started buying up GameStop stock and holding it, to the point where there were, let’s say, only 25 shares available in total. Remember, Melvin never owned those shares to begin with, and sold them on the market, allowing WSB to buy them up to the point where they collectively hold enough shares so that the number of shorts Melvin needs to cover is greater than the amount freely for sale, the difference having been bought up by a bunch of people who don’t want to sell.
Let’s imagine now it’s this Friday, which is the day that Melvin’s shorts have to be called in. They owe the broker 75 shares, but they can only buy 25 since the other 50 shares got bought up by WSB in the meantime. But, Melvin still owes the broker the 50 remaining shares that they shorted earlier, which is where the squeeze comes in.
Because they owe more shares than it’s possible for them to acquire, they making them have to offer more and more money until WSB finally relents and sells them the 50 shares they need, and that can be as long as WSB can collectively hold out for. If they aren’t able to cover the shares they shorted, they’re majorly on the hook from the broker they owe those shares to, and their assets and stuff like that can be seized to cover the difference, to the point of bankruptcy at least. The obligation to buy the shares from WSB is whats driving the price essentially.
Also, part of it is that the firms did something called “naked shorting”, which is selling shares to short that a broker doesn’t actually have and is super illegal, but that’s Wall Street for you.
I hope that was a good enough explanation.
After looking into it I'm more convinced than ever that Wall Street is fake and that we should burn it all down asap. I'm seriously glad I'm a communist.
It sounds like a meme whenever I say this but like yeah legitimately money is fake. It's a shared delusion that everyone is happy to participate in because the propaganda tells you that you should.
I mean for fuck sake there's a "global debt" and yet we're the only planet we know about with intelligent life. Global debt. To fucking who exactly??
It gets even more stupid than that - the global debt grows because banks are extracting value from future growth to print money to be spent now. We literally owe the debt to our future economies but can never pay it back, so just perpetually extract this mythical future growth to increase cashflow today in the hope that the growth will come. It's a completely fucking insane system but nobody acts like it is, because this 'common sense' understanding of state debt shoved down our gullets makes no mention of the fact that state debt is nothing remotely like household debt.
"We produce more than enough, what if we just made stuff and shipped it to where it needs to go instead of worrying about currency"
"Pfft, that's fantasy shit, read econ 101" borrows money from the future
Fuck yeah it's fake. A VAST majority of trading is done with bots able to exploit mico changes in the market at a moments notice. If that isn't fake idk what is.
Lots of folks in that thread primed for radicization. They know they're getting scraps. They know they're gambling and that getting lucky on a gamble is maybe the only way out. And they're willing to organize with others (coordinated buying and selling, with real investment) to pursue that.
Yup honestly we should just start posting in reddit again and hijack wsb and collapse. Also pay attention to the great awakening win site it's how i git tipped off to the bed bath and beyond scam. Qanon is now playing this game too.
collapse used to be a left leaning sub. it's kinda gone reactionary but with some effort we could bring it back
months of binging the trashfuture backlog have prepared me for this.
the unholy wedding of silicon valley and wall street,
toppled by their own twisted offspring
all I can say is
:sicko-yes:
Which eps are on wall street?
Edit: More specifically on day trading I guess
July 27 2020 is about Tesla and definitely mentions the Robinhood app a fair amount
I'm pretty sure these ones do. I'm afraid it's been a while, so I could be wrong.
Edit: thought I should include the episode Multihedra mentioned.
They had an ep that went in to detail on what a gamma squeeze is- I think it was in relation to Tesla but I can’t recall the episode number
when the inevitable crash comes they are gonna use this to pin it all on retail traders and regular folk being 'irresponsible', not the rampant greed and speculation that these fucks have been engaging in on a regular basis for decades.
GME is like $80 in the premarket, today will be an interesting day
edit it's like $120 now wtf is going on
I donno, the Gamestop thing has me slightly nervous after reading up on it and learning 80% of the shares were shorts and that the big short ghouls are investing in the scheme now too. Like if this is a one off-case it's one thing-gamestop being dead has basically been a meme for a seven years-but if it's not, we could be in for some serious shit.
but if it’s not, we could be in for some serious shit.
Maybe I'm just not grasping the severity of this, but what real consequence could this hold? A bunch of redditors screwed over some Wall street ghouls over stock in a failing company. Gamestop isn't worth... THAT much to really have a massive overall effect on the economy, right? There's no way this could lead to anything beyond poor quarterly projections for these investment firms. Right?
Depends on how strong their short position is and how high GME shares are memed, but I seriously doubt these firms will suffer too badly. They'll have highly diversified investments and will be well prepared for recovery from bad trades. House always wins, especially when the house in question is one of the money printers for the bourgeoisie.
Edit: don't get me wrong though I'd love to watch these cunts go under at the hands of some wsb memes
It depends on who is getting squeezed. The big issue with the 2008 crash was that Blue Chip, supposedly secure companies like Lehman Brothers were getting involved with risky business.
Even worse those stocks that went back up are indexes. The ones before it were individual companies. The contrast between the overall market and how many people are being screwed is part of the joke.
hope you didn't sell yet, jesus christ
edit: ok now i hope you sold at 150, this shit is wildIm holding out for now- I figure I’m still way up snd as long as it closes higher than it did on Friday, it should spike again tomorrow lmao
I used Robinhood- free to sign up and 0 trading fees, but do not use margin unless you want to lose all your money
$5->$120
Impressive I guess, but you'd still needed to have put in a rather hefty chunk of cash to make any serious life-changing bank off this bubble
Wake me when there's a racket where I can become a millionaire for the cost of a bag of chips
It's literally like going to the casino. You can! Make millions off $3. But it's going to take a lot of luck.
I use a tiny credit union that isn't recognized by all the online banks and I gotta be honest, I'm seething pretty hard rn
I tried to buy in but the stupid app I used for the first time had to go through all of this ID verification and it's still not done. Easy come, easy go, I guess.
