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User avatar
By TH Spangler
Registration Days Posts
#621463
This Robinhood situation seems big, it's very concerning. Maybe some bankers or investors can chime in here. What should 401k investors be doing.
:dontgetit
User avatar
By chris leedlelee
Posts
#621464
TH Spangler wrote: January 29th, 2021, 11:01 am This Robinhood situation seems big, it's very concerning. Maybe some bankers or investors can chime in here. What should 401k investors be doing.
:dontgetit
Forget your 401k and put all of your money into DOGE! I kid, however, Bitcoin and Cardano are both good long-term buys.
User avatar
By thepostman
Registration Days Posts
#621465
This is going to have more of an effect on novice day traders than anybody else. Could 401k's be temporarily damaged? Possibly.

Shorting has finally been exposed for the scam it is. This is another issue that should bring both parties together but most polticians have too much to gain from those on wall street.

Elon Musk said it best in regards to shorting:

User avatar
By TH Spangler
Registration Days Posts
#621466
I'm hearing everything, from it's just a blip, to it's going to be ten times worse than the housing crash?
User avatar
By thepostman
Registration Days Posts
#621467
That would be pretty impressive if a bunch of redditors caused a market crash worse than the housing crash.

The wealthy hedge fund voices are strong and make for good fear mongering I suppose.
User avatar
By Class of 20Something
Posts
#621471
Musk is wrong in practicality though. Who here hasn't borrowed money to get a mouse or a car?

Don't get me wrong, this whole thing is a great rallying cry for a third party waiting to happen. And I am all about that.
User avatar
By RubberMallet
Registration Days Posts
#621474
Few things :

- retail investors only have access to a small % of shares of Gamestop. This is Goliath vs Goliath. other institutions are optioning and shorting this stock for their own purposes. WSB is just along for the ride and getting the pub.

- Options trading and shorting is typically done on margin. meaning you are basically using your credit. These brokerages are just getting slammed and they don't have the collateral to handle it. RH screwed up by now even allowing cash buys. (TDA, Etrade were allowing cash buys but restricting margin calls) I do believe their relationship with Citadel was also squeezed and caused them to artifically drop the stock yesterday (Citadel is invested in Hedgefunds, many of which currently being squeezed)

- Short selling is an important check and balance our stock market NEEDS. Elon is just mad his company has been shorted for years. Shorting is a shake out that has exposed fraud over and over again. That said, a glaring issue with these giant hedge funds shorting companies is they put out Short Reports. These reports basically artificially start the stock on the downward path because everyone reads why this HF thinks this company STINKS and is like oh crap, starts selling price drops, HF completes the short and makes millions. Well I think that will be gone as now you have this organized effort via the internet of hawks who will put the squeeze on any time a short report is put out.

-9 out of 10 amateur options/day/short traders lose money in the stock market. They do however provide liquidity into the market to keep it efficient.

I bought a small position at $60 and 90 and have liquidated half of my position. Its made money but it will go far enough to make up for losses i've had hear and there.
User avatar
By RubberMallet
Registration Days Posts
#621475
also don't expect much help from our gvt. these are the same people who sat in closed door meetings and immediately sold stock based on that information and literally nothing happened to them.
User avatar
By RubberMallet
Registration Days Posts
#621476
lion share of people should be doing nothing. get your fair share of the market. If you have money you can stand to lose, open and account and buy companies that interest you.
User avatar
By TH Spangler
Registration Days Posts
#621479
RubberMallet wrote: January 29th, 2021, 1:09 pm also don't expect much help from our gvt. these are the same people who sat in closed door meetings and immediately sold stock based on that information and literally nothing happened to them.
I haven't heard or seen Richard Burr in months :roll:
User avatar
By RubberMallet
Registration Days Posts
#621481
also, Trump deregulated so much of the rules regarding this kind of stuff that helped make all this possible. His appointees to these positions were hedgefund lackeys.
Jonathan Carone liked this
By stokesjokes
Registration Days Posts
#621482
You seem very knowledgeable here, @RubberMallet, I read that there were shorts on what amounted to 140% of GME stocks- how does that happen?
User avatar
By RubberMallet
Registration Days Posts
#621483
because once you borrow a stock then sell it, the person you sold it to can turn around and lend it out again to be shorted. the person who bought it has no idea that stock was technically borrowed to be sold to them. they turn around and allow their broker to borrow it.
User avatar
By thepostman
Registration Days Posts
#621512
RubberMallet wrote: January 29th, 2021, 1:05 pm Few things :

- retail investors only have access to a small % of shares of Gamestop. This is Goliath vs Goliath. other institutions are optioning and shorting this stock for their own purposes. WSB is just along for the ride and getting the pub.

- Options trading and shorting is typically done on margin. meaning you are basically using your credit. These brokerages are just getting slammed and they don't have the collateral to handle it. RH screwed up by now even allowing cash buys. (TDA, Etrade were allowing cash buys but restricting margin calls) I do believe their relationship with Citadel was also squeezed and caused them to artifically drop the stock yesterday (Citadel is invested in Hedgefunds, many of which currently being squeezed)

- Short selling is an important check and balance our stock market NEEDS. Elon is just mad his company has been shorted for years. Shorting is a shake out that has exposed fraud over and over again. That said, a glaring issue with these giant hedge funds shorting companies is they put out Short Reports. These reports basically artificially start the stock on the downward path because everyone reads why this HF thinks this company STINKS and is like oh crap, starts selling price drops, HF completes the short and makes millions. Well I think that will be gone as now you have this organized effort via the internet of hawks who will put the squeeze on any time a short report is put out.

-9 out of 10 amateur options/day/short traders lose money in the stock market. They do however provide liquidity into the market to keep it efficient.

I bought a small position at $60 and 90 and have liquidated half of my position. Its made money but it will go far enough to make up for losses i've had hear and there.
Clearly you're way more knowledgeable on this than I am but it is nearly impossible for me to feel much sympathy for these hedge fund holders who have been working the system to their advantage for years. A few random 20 year olds on reddit finally give them a taste of their own medicine and then cry foul. It is comical.
User avatar
By TH Spangler
Registration Days Posts
#621534
A few random 20 year olds on reddit finally give them a taste of their own medicine and then cry foul. It is comical.
Hedge fund guys own the establishment. Let's see what Biden does.

In the meantime I'm 75% on the sideline. Way more downside risk right now.
By JK37
Registration Days Posts
#621563
TH Spangler wrote: January 29th, 2021, 11:01 am This Robinhood situation seems big, it's very concerning. Maybe some bankers or investors can chime in here. What should 401k investors be doing.
:dontgetit
If any of those or other reg reps came here and told you what you should do, they’d be in trouble with SEC and FINRA.

Orman, Ramsey, et al have you covered. :roll:
LU 57 liked this
User avatar
By RubberMallet
Registration Days Posts
#621668
thepostman wrote:
Clearly you're way more knowledgeable on this than I am but it is nearly impossible for me to feel much sympathy for these hedge fund holders who have been working the system to their advantage for years. A few random 20 year olds on reddit finally give them a taste of their own medicine and then cry foul. It is comical.
i didn't urge anyone to be sympathetic towards hedge fund managers in this situation. Giant shorts have exposed more fraud than any gvt entity though. This is why you want them to still exist.
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