therealhantsram Posted January 27, 2021 Share Posted January 27, 2021 Is this an interesting use of social media for good? A bunch of folks on Reddit are taking on hedge funds that short stock and help drive companies out of business. Members are teaming up to buy stock in struggling firms so that the Hedge Funds lose their bets. Hard not to chortle at the thought of billionaires getting a taste of their own medicine... And poised to lose millions. https://www.theverge.com/2021/1/27/22251964/amc-stock-price-reddit-wallstreetbets-trading-gamestop?scrolla=5eb6d68b7fedc32c19ef33b4 I know a few people here recently have said they have been dabbling in the stock market. Curious about your thoughts on it and whether you would get involved? Link to comment Share on other sites More sharing options...
therealhantsram Posted January 27, 2021 Author Share Posted January 27, 2021 From USD 2.5 to USD 380 in a couple of weeks. That's one wild ride. Link to comment Share on other sites More sharing options...
Olton Ram Posted January 27, 2021 Share Posted January 27, 2021 37 minutes ago, therealhantsram said: Is this an interesting use of social media for good? A bunch of folks on Reddit are taking on hedge funds that short stock and help drive companies out of business. Members are teaming up to buy stock in struggling firms so that the Hedge Funds lose their bets. Hard not to chortle at the thought of billionaires getting a taste of their own medicine... And poised to lose millions. https://www.theverge.com/2021/1/27/22251964/amc-stock-price-reddit-wallstreetbets-trading-gamestop?scrolla=5eb6d68b7fedc32c19ef33b4 I know a few people here recently have said they have been dabbling in the stock market. Curious about your thoughts on it and whether you would get involved? It's an interesting social movement, responding to vulture capitalism, but as an investment strategy it seems incredibly high risk. It may also be a short-lived fad. I certainly wouldn't touch it, although I tend to be a low/medium risk investor in any case. Link to comment Share on other sites More sharing options...
Day Posted January 27, 2021 Share Posted January 27, 2021 Been watching this myself with interest, some of those members have made some serious money off it Link to comment Share on other sites More sharing options...
Day Posted January 27, 2021 Share Posted January 27, 2021 Just had a little punt on Blackberry, hoping it’s the next to bang ? Link to comment Share on other sites More sharing options...
cstand Posted January 27, 2021 Share Posted January 27, 2021 I suspect this is politically motivated by people who don’t understand how hedge funds work. When I research wether I decide to buy a share I look to see if any hedge fund has taken out a short position on the share I am considering to buy, professional people will have more knowledge than me on the financial state of a company so it helps anyone who is considering buying into any company that is trying to hoodwink any private investor by dubious accounting. https://www.investopedia.com/articles/investing/100913/basics-short-selling.asphttps://www.investopedia.com/articles/investing/100913/basics-short-selling.asp Link to comment Share on other sites More sharing options...
Boycie Posted January 27, 2021 Share Posted January 27, 2021 1 hour ago, David said: Just had a little punt on Blackberry, hoping it’s the next to bang ? Android? Link to comment Share on other sites More sharing options...
Stive Pesley Posted January 28, 2021 Share Posted January 28, 2021 I was reading a long twitter thread on this just now which was a good explainer I'm not sure this ends well -much as it's easy to hate hedge funds, they do unfortunately play an important part in the ponsi scheme we call the global economy. Way more people will suffer from hedge funds folding than just a handful of vulture capitalists If any good comes from it, it will be the more widespread awareness that hedge funds manipulate markets all the time and the whole system is rigged. Until now, when those same mechanisms are used against them. Funny that these hedge funds are calling for a subreddit to be investigated for market manipulation! They need to be careful what they wish for Link to comment Share on other sites More sharing options...
Shang Posted January 28, 2021 Share Posted January 28, 2021 I'm finding this hilarious. Some short sellers have done some good in the past in exposing weak or shoddy companies but this particular hedge fund getting screwed over now is one that's been consistently kicking down the price of GameStop stocks to make cash. The hedge funds were speculatively betting that the stock will go down in price and it hasn't and now they're being punished for their out-of-control gambling. Link to comment Share on other sites More sharing options...
tinman Posted January 28, 2021 Share Posted January 28, 2021 Can someone explain in very simple layman's terms what's been happening? Link to comment Share on other sites More sharing options...
Stive Pesley Posted January 28, 2021 Share Posted January 28, 2021 16 minutes ago, tinman said: Can someone explain in very simple layman's terms what's been happening? This is a threadreader unroll of the Twitter explainer I mentioned https://threadreaderapp.com/thread/1354517067240771584.html Link to comment Share on other sites More sharing options...
cstand Posted January 28, 2021 Share Posted January 28, 2021 Market manipulation is regulated https://www.finextra.com/pressarticle/84292/jpmorgan-chase-fined-920-million-for-market-manipulation Link to comment Share on other sites More sharing options...
Stive Pesley Posted January 28, 2021 Share Posted January 28, 2021 6 minutes ago, cstand said: Market manipulation is regulated https://www.finextra.com/pressarticle/84292/jpmorgan-chase-fined-920-million-for-market-manipulation And I think we may shortly find out how well those regulations are applied...and to whom Link to comment Share on other sites More sharing options...
Stive Pesley Posted January 28, 2021 Share Posted January 28, 2021 or a simpler version Link to comment Share on other sites More sharing options...
Shang Posted January 28, 2021 Share Posted January 28, 2021 The kicker is that none of this illegal, this is the equivalent of reading an investment paper or blog and deciding to purchase a stock. All the discussions are talking about new regulation to stop this happening in the future. Link to comment Share on other sites More sharing options...
cstand Posted January 28, 2021 Share Posted January 28, 2021 14 minutes ago, Stive Pesley said: And I think we may shortly find out how well those regulations are applied...and to whom Unfortunately it takes time to prosecute because you need credible evidence hopefully the guilty people at JPM will be serving time in jail and should never be allowed to work in the banking industry again. AOC as usual as no credible evidence to back up her many bizarre statements. I don’t get involved in any politics on Twitter it’s just full of idiots from both sides Link to comment Share on other sites More sharing options...
Jubbs Posted January 28, 2021 Share Posted January 28, 2021 33 minutes ago, cstand said: Unfortunately it takes time to prosecute because you need credible evidence hopefully the guilty people at JPM will be serving time in jail and should never be allowed to work in the banking industry again. AOC as usual as no credible evidence to back up her many bizarre statements. I don’t get involved in any politics on Twitter it’s just full of idiots from both sides Reddit side of things have done nothing wrong. 34 minutes ago, cstand said: AOC as usual as no credible evidence to back up her many bizarre statements. What do you mean no credible evidence? Are you genuinely trying to say Wall Streeters have always done good? Link to comment Share on other sites More sharing options...
cstand Posted January 28, 2021 Share Posted January 28, 2021 1 hour ago, Stive Pesley said: And I think we may shortly find out how well those regulations are applied...and to whom Just read on LSE board their next target is silver Noooooooooooooooooooooo make it gold, if gold soars my ggp shares are going into orbit. Link to comment Share on other sites More sharing options...
cstand Posted January 28, 2021 Share Posted January 28, 2021 5 minutes ago, Jubbs said: Reddit side of things have done nothing wrong. What do you mean no credible evidence? Are you genuinely trying to say Wall Streeters have always done good? Off to buy silver shares before the Reddit crowd get involved don’t you just love capitalism Link to comment Share on other sites More sharing options...
cstand Posted January 28, 2021 Share Posted January 28, 2021 59 minutes ago, cstand said: Off to buy silver shares before the Reddit crowd get involved don’t you just love capitalism https://www.google.co.uk/amp/s/coingape.com/reddit-group-wallstreetbets-planning-to-short-squeeze-silver-next/amp/ Link to comment Share on other sites More sharing options...
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