[SmartCat]

Originally Posted by SilentEngine

What is stopping the retail traders from booking those gains?

A little devil will be whispering in their ears: If your $25,000 has become $250,000, then perhaps $250,000 will become $2.5 million?

Couldn't they just square off those long positions (at least partially). Very likely that early ones have booked gains which are probably 5x, 10x compared to what they entered with.

Yes, experienced traders (10+ years in the market) would have booked out partially. Or atleast would have started trailing their profits.

[McLaren Rulez]

Originally Posted by SmartCat

Fly in the ointment is that the gains made by retail gang so far is NOT money in the bank. These are just mark-to-market gains.

Only very experienced retail participants will know when the music is about to stop playing, and when to bank the gains made.

Are you sure? If I understand correctly, the comments here seem to suggest one of the main players cashed in $2M and that was just on that particular day. https://www.reddit.com/r/wallstreetb...e_jan_25_2021/

There certainly are those who will be too greedy and lose it all but some are certainly making actual money-in-the-bank out of the chaos!

[digitalnirvana]

Originally Posted by download2live

@Smartcat I think you owe us a separate thread for Melvin Capital and GME stock saga which is unfolding now. I wished to create one but I do not have that explaining superpowers like you have.

The story unfolding now is jaw dropping. Apparently someone has converted 50k investment into 11 million. There is a movie story in this somewhere.

And it is 24 million now. The guy has cashed out 7 million and holding the rest.

Edit - I do NOT recommend following WSB for investment advice. It is a funny sub and I've followed it for years now, but they'll tell you first not to take them seriously. People have committed suicide YOLOing and losing it all. And also people have made incredible fortunes. GME is unique and props to DFV aka the guy who turned his 50k to life changing amount for having spotted his value play in 2019 when he put in 50k. Do not think this saga is over yet, and some retail investors will surely get burnt. But Melvin is on its knees and this has got the whole world talking.

[digitalnirvana]

Originally Posted by whitewing

+1 to that, looking forward to that Smartcat !
Its almost unreal that a big hedge fund is getting hit by a bunch of folks from a subreddit !.
Isn't there some rule to prevent people from forming cartels to fix the prices?

You got the wrong end of the stick here. The cartel is by the hedge funds who shorted 139% of float. Let that sink in for a moment. MORE THAN 100% OF ALL OF THE AVAILABLE SHARES (FLOAT) were shorted. WSB saw that and simply started buying, knowing that when the hedge funds need to square off their position, they WILL have to buy from the market at a higher price in order to close.

Melvin is very close to bankruptcy as of now even after the bailout.

A very good explanation is in this video.

https://youtu.be/4EUbJcGoYQ4

It has NSFW language though.

[how_you_doing]

For those who are interested, this is the user who started all this at WSB https://www.reddit.com/user/Deep****ingValue

His current holding is at $47 million USD and by next Friday may end up with $100M as GME is certainly going to be in $500-$600 range as now lot of institutions are also buying this stock.

[download2live]

Originally Posted by SmartCat

If I was a betting guy (and I am), I would bet on institutional traders having the last laugh. They literally have unlimited ammo.

And they are deploying it.
Chamath Palihapitiya in an interview with Scott Wapner. Looks like CNBC did not upload this part on YouTube.

https://youtu.be/xVUBJSnBxKA

Chamath Palihapitiya apparently has put in 100k 'to learn'.
That guy DFV was up to 48 million !! Looks he did sell some. But overall still is in.

I see a lot of talk about this coming Friday. Everyone on WSB is being urged to buy and hold till Friday. But not after it.

I think it will not end well for many in WSB. But again at this stage most are not investing for gains. People are buying just a token number to put their weight behind this. A lot of animosity remains in people mind when banks were bailed out in 2008 on Tax payers money.

[digitalnirvana]

I absolutely love what Chamath says there.

At the risk of going off topic, I'm going to use a recent meme by Yashraj Mukhate to explain how the institutions and media are spinning this

"Twadda kutta Tommy, saada kutta kutta?"

(Your dog is Tommy, but my dog is dog?)

[SmartCat]

This is exactly why retail will lose big eventually (however, I'm not sure if these guys are kidding in this post):



Samir Arora nicely lists out the eventual winners and losers in this contest (the endgame):

[Cessna182]

The gamestop saga is exciting, but price manipulation happens in the Indian market also. Sucheta Dalal, the journalist who exposed Harshad Mehta, made a recent video about this. People buy shares of companies which trade at low volumes and then rig the price.

https://youtu.be/QVSOvyfGT8Q

[download2live]

Sometimes I feel what a colossal waste of talent is it in the Hedge funds. I mean there is money but there is so much more those clever maths graduates can do. That is why I like Elon Musk so much. That guy made things.
Anyway time to come out of the "3 Idiots" mode.
Money talks.

[McLaren Rulez]

Originally Posted by SmartCat

This is exactly why retail will lose big eventually (however, I'm not sure if these guys are kidding in this post)

The whole environment on r/wsb is insane - as some said, it's 4chan with a Bloomberg terminal.

Amidst the insanity, there is a rather canny subgroup though. It's this lot that are the real winners. The rest of them are going to be left holding a bags of nothing in a few days/weeks.

[SmartCat]

Discount brokers like Robinhood, Interactive Brokers etc have stopped retail folks from buying GME, AMC etc stock. They can sell their existing holdings though. Because of this, GameSpot has crashed today (giving the shorters a breather)

For those who follow US politics, look who has tweeted about this calling for an enquiry:





Lawmakers from AOC to Ted Cruz are bashing Robinhood over its GameStop trading freeze
https://www.cnbc.com/2021/01/28/game...de-freeze.html

“While retail trading in some cases, like on Robinhood, blocked the purchasing of GameStop, hedge funds were still allowed to trade the stock,” Khanna said.

“They’re blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who’ve used the stock market as a casino for decades,” Tlaib said.

[McLaren Rulez]

Originally Posted by SmartCat

Discount brokers like Robinhood, Interactive Brokers etc have stopped retail folks from buying GME, AMC etc stock. They can sell their existing holdings though. Because of this, GameSpot has crashed today (giving the shorters a breather)

That was pretty brazen! Literally all they had to do was let the bubble pop on its own in a few days but instead, they've chosen this legally dubious route! This might work but will leave a lot of people wondering in what other ways the system is rigged in favour of the rich.

And finally, on a lighter note

[download2live]

Originally Posted by SmartCat

Discount brokers like Robinhood, Interactive Brokers etc have stopped retail folks from buying GME, AMC etc stock. They can sell their existing holdings though. Because of this, GameSpot has crashed today (giving the shorters a breather)

For those who follow US politics, look who has tweeted about this calling for an enquiry:

Attachment 2114869

Attachment 2114870

Lawmakers from AOC to Ted Cruz are bashing Robinhood over its GameStop trading freeze
https://www.cnbc.com/2021/01/28/game...de-freeze.html

Retail investors got played. I was thinking that Hedge funds will be employing some super complicated strategy. Not today.

This is the reason someone like Trump gets elected. When the system fails people and they have no one to turn to.

[SmartCat]

Moving all posts to a new thread, the GameSpot Saga!