OT: Stock trading

[Jay-Bone]

Maybe they're diversifying, lol. Surprise attack on something else that wall streets isn't expecting. AAL now up 31%.

46%

 

[the Q]

I haven't really posted in this thread... kind of like to think of work and money separate from my hobbies. But yeah,, I'm sure they'll regulate it somehow because guys with Robinhood accounts don't have the kind of political lobbying capital hedge funds do, but you're hitting the nail on the head here imo. Market manipulation is market manipulation. Just cause you wear a suit when you do it doesn't mean it should be legal.

Right. This probably is wrong/illegal but because of the underdog story and political capital it may get ignored

 

[JohnFSilver]

Right. This probably is wrong/illegal but because of the underdog story and political capital it may get ignored

Can you regulate an unorganized message board? If the guys at WSB are telling people what to do, and it is open to everyone to read, there are free speech issues with saying they can't do this. They aren't taking their money and doing this. Also, they aren't themselves investing the money. It is a message board. Unless there is a coordinated effort to pump and dump, which doesn't appear to be the case, then i am not sure how it is manipulation.

They took data, found an inefficiency in the market, and recommended that money can be made by putting on a short squeeze on. I think that is fair. Hedge funds shouldn't expose themselves to that.

You play the game, you sometimes lose. Just because you are "important" doesn't innoculate you from the irrationality of the market.

 

[UConnSwag11]

OMG all services are restricting buying of AMC and GME

 

[Deepster]

Robinhood will not allow any purchases of GME, NOK or AMC right now. Only sales. Trying to get the public to panic. I hope the hedge funds get massacred today.

 

[UConnSwag11]

Robinhood will not allow any purchases of GME, NOK or AMC right now. Only sales. Trying to get the public to panic. I hope the hedge funds get massacred today.

yup. they kicked the hornest nest yesterday. They don't know what they woke up with this

 

[UConnSwag11]

Not selling anything. Adding more to $nakd

 

[UConnSwag11]

CNBC twisting themselves into more than a pretzel trying to cover for the suits

 

[JohnFSilver]

OMG all services are restricting buying of AMC and GME

Ridiculous. They are allowing hedge funds to close out their position because they whined.

 

[StllH8L8ner]

CNBC twisting themselves into more than a pretzel trying to cover for the suits

Did you see the interview with Chamath? Great stuff.

 

[UConnSwag11]

Did you see the interview with Chamath? Great stuff.

yup and Mark Cuban this morning

 

[UConnSwag11]

Portnoy is going to destroy Robinhood

 

[HuskyHawk]

I can't trade pre market anyway.

 

[Deepster]

Ridiculous. They are allowing hedge funds to close out their position because they whined.

Hey JFS, can you explain this a little more like I'm a toddler?

 

[navery12]

Hey JFS, can you explain this a little more like I'm a toddler?

The hedge funds are required to buy these stocks back by a set time (call it 3:30 PM today for example). Robinhood and others closed out buying more stock on their apps so that the price can't go higher and the hedge funds lose any more than they have already

 

[aburks41]

Robinhood delisted $GME. You cannot even search for it anymore on the app lmao. W..T..F are they thinking??

 

[Deepster]

The hedge funds are required to buy these stocks back by a set time (call it 3:30 PM today for example). Robinhood and others closed out buying more stock on their apps so that the price can't go higher and the hedge funds lose any more than they have already

Well, that doesn't sound all that legal.

 

[JohnFSilver]

Hey JFS, can you explain this a little more like I'm a toddler?

The hedge funds need to buy stock that they borrowed. Jerks borrowed stock to sell at 20 hoping to return the share to the owner at 13.

But, when it went crazy, they are looking to get out of the contract. Only way to do that is to buy stock and fast. So, if you can only sell shares, I would think that hedge funds are going to be able to buy the shares. Not retail investors.

So, hedge funds don't have the competition of the retail investor in acquiring shares to close their position.

 

[JohnFSilver]

Well, that doesn't sound all that legal.

If it is, it shouldn't be. This is regulators protecting hedge funds.

 

[CTBasketball]

This move by TDAmeritrade, Robinhood, etc is all very highly illegal.

 

[tiger8mush]

$nok down 20%. good buying opportunity, or is this the "dump" part of "pump & dump"?

 

[aburks41]

$GME $AMC $NOK are all plummeting now

 

[pepband99]

The hedge funds need to buy stock that they borrowed. Jerks borrowed stock to sell at 20 hoping to return the share to the owner at 13.

But, when it went crazy, they are looking to get out of the contract. Only way to do that is to buy stock and fast. So, if you can only sell shares, I would think that hedge funds are going to be able to buy the shares. Not retail investors.

So, hedge funds don't have the competition of the retail investor in acquiring shares to close their position.

One thing being missed - the issue isn't just shorting and contracts. The issue is doing that WITHOUT hedging on something else to compensate. If you're hedged well, you can sit out all of this GME nonsense, and watch it plummet back to earth with a smile.

This is all about a hedge fund not hedging, and being caught.

 

[aburks41]

CNBC going on about pensions being invested in Hedge Funds. If a hedge fund is shorting stocks with PENSION FUNDS then they need to be shut down immediately. That is incredibly incredibly dangerous

 

[StllH8L8ner]

It may have been said here before but probably worth repeating, if you're thinking of going into any of these names, only invest what you're willing to lose. I'm sitting on the sideline watching this debacle unfold and while I like the idea of Main Street vs Wall Street, it's not going to end well for some.