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Gamestop trading

Gamestop trading

Old Jan 30th 2021, 2:03 pm
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Default Re: Gamestop trading

Originally Posted by anotherlimey View Post
Props to him for making the right call on the stock and holding. He's been making his case on YouTube for months.
I think Dave_j hedge fund feud theory is a good one. They might be killing off a few competitors.
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Old Jan 31st 2021, 5:49 am
  #32  
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Default Re: Gamestop trading

This is going to fall down when people lose their nerve.
The wallstreetbets reddit is awash with people screaming to HOLD etc, but if I was sat on some of the triple, quadruple digit percentage increases, I'd be saying thanks very much and bowing out with pockets full of cash.
I've resisted buying in, mainly because it was at 190-something.
Now it's closed at 325 (I think), so should have, but such is. I'd only have chucked a couple of grand at it because I've got tiny balls, which is why it's fun to watch and then smile weakly as I add that money to an ETF instead.
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Old Jan 31st 2021, 6:59 am
  #33  
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Default Re: Gamestop trading

Originally Posted by Scamp View Post
This is going to fall down when people lose their nerve.
The wallstreetbets reddit is awash with people screaming to HOLD etc, but if I was sat on some of the triple, quadruple digit percentage increases, I'd be saying thanks very much and bowing out with pockets full of cash.
I've resisted buying in, mainly because it was at 190-something.
Now it's closed at 325 (I think), so should have, but such is. I'd only have chucked a couple of grand at it because I've got tiny balls, which is why it's fun to watch and then smile weakly as I add that money to an ETF instead.

Had i known about it before it got crazy high and knew how to do it, I so would have put some money on it then cashed out, wouldn't have gotten rich, but could have made a bit of cash....ha ha
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Old Jan 31st 2021, 7:03 am
  #34  
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Default Re: Gamestop trading

Originally Posted by Jsmth321 View Post
Had i known about it before it got crazy high and knew how to do it, I so would have put some money on it then cashed out, wouldn't have gotten rich, but could have made a bit of cash....ha ha
Basically, you wouldn't have known.
The guy who's turned thousands into millions was posting about them for ****ing ages on the thread on Reddit and roundly getting abused for it. People were openly taking the piss and laughing at him.
If you saw the uptick and jumped in sub-35 bucks you're laughing and enjoying a ten-bagger.
If you jumped in at 150, you're still doubling your cash but then you start thinking how much to chuck in. The returns are not now in the silly percentages, but still cash to be made if you put enough in.
Then the issue is going to be how long the average joe ignores the big profits to 'fight the system'. Ultimately I'd be cashing out and being happy to make my money and forget the idealistic side of it all
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Old Jan 31st 2021, 7:26 am
  #35  
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Default Re: Gamestop trading

Originally Posted by Scamp View Post
Basically, you wouldn't have known.
The guy who's turned thousands into millions was posting about them for ****ing ages on the thread on Reddit and roundly getting abused for it. People were openly taking the piss and laughing at him.
If you saw the uptick and jumped in sub-35 bucks you're laughing and enjoying a ten-bagger.
If you jumped in at 150, you're still doubling your cash but then you start thinking how much to chuck in. The returns are not now in the silly percentages, but still cash to be made if you put enough in.
Then the issue is going to be how long the average joe ignores the big profits to 'fight the system'. Ultimately I'd be cashing out and being happy to make my money and forget the idealistic side of it all
I'd have cashed out once i made some money, i would not sit and lose money just to fight the system..ha ha

Looking back is always the easy part, I would have had a house looking back if I had bought stock in the airline I worked for in 2001, it went down to almost nothing, if I took the 5,000 I had saved at the time, 4-5 years later would have cashed out nicely but eh in 2001 it looked like we were going to go bankrupt or out of business. Fun to think about though, would have gotten about 1,800 shares in 2001, and that 5k would have been 75k to 80k within 5 years..





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Old Jan 31st 2021, 7:29 am
  #36  
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Default Re: Gamestop trading

Originally Posted by Jsmth321 View Post
Had i known about it before it got crazy high and knew how to do it, I so would have put some money on it then cashed out, wouldn't have gotten rich, but could have made a bit of cash....ha ha
It is a bad investment indicator when the Dailymail is parading pictures of scruffy millionaires who made their fortune with a few key board clicks,
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Old Jan 31st 2021, 7:49 am
  #37  
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Default Re: Gamestop trading

Originally Posted by Jsmth321 View Post
I'd have cashed out once i made some money, i would not sit and lose money just to fight the system..ha ha

Looking back is always the easy part, I would have had a house looking back if I had bought stock in the airline I worked for in 2001, it went down to almost nothing, if I took the 5,000 I had saved at the time, 4-5 years later would have cashed out nicely but eh in 2001 it looked like we were going to go bankrupt or out of business. Fun to think about though, would have gotten about 1,800 shares in 2001, and that 5k would have been 75k to 80k within 5 years..
Honestly, you're as likely to win playing roulette when picking individual stocks.
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Old Jan 31st 2021, 10:01 am
  #38  
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Default Re: Gamestop trading

Originally Posted by Scamp View Post
Then the issue is going to be how long the average joe ignores the big profits to 'fight the system'. Ultimately I'd be cashing out and being happy to make my money and forget the idealistic side of it all
I think there's a lot in that. If people who are struggling financially from month to month have invested money that they can't really afford to lose, the temptation will be great to cash in. Who can blame them.

However, the episode has consequences that can no longer be reversed. Notably:

It has illustrated, to anyone with a modicum of intelligence, what hedge funds are: mere capitalism in our time at its rawest, ugliest and most naked; people whose moral compass is limited only by the constraints of the prevailing legislation and whose sense of duty extends no further than their own pockets. If Hedge Funds PLC existed, the damage wreaked by this episode on its image would puts its stock in a nosedive.

It has shaken politicans' defence of "the system" as being "too big to fail".

It has illustrated the power of the Internet in the hands of the "average joe". Capitalists whose wealth exceeds that of whole countries, who think that the power this gives them puts them above governments and society, are finding that concerted grass-roots effort is a force to be reckoned with. Even if they hit back, the genie is out of the bottle, like Martin Luther King's final speech.

It will prompt an inevitable rethink of the bricks-and-mortar model. As I understand it, the original impetus for the Reddit campaign came not from the critics of hedge funds, but from ordinary gamers who didn't want to see their favourite store close. They could, of course, simply have shopped there a little more often.

Has anyone considered that it's not exactly bad publicity for Gamestore, whoever owns it?
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Old Jan 31st 2021, 10:43 am
  #39  
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Default Re: Gamestop trading

Originally Posted by Watchpost View Post
I think there's a lot in that. If people who are struggling financially from month to month have invested money that they can't really afford to lose, the temptation will be great to cash in. Who can blame them.

However, the episode has consequences that can no longer be reversed. Notably:

It has illustrated, to anyone with a modicum of intelligence, what hedge funds are: mere capitalism in our time at its rawest, ugliest and most naked; people whose moral compass is limited only by the constraints of the prevailing legislation and whose sense of duty extends no further than their own pockets. If Hedge Funds PLC existed, the damage wreaked by this episode on its image would puts its stock in a nosedive.

It has shaken politicans' defence of "the system" as being "too big to fail".

It has illustrated the power of the Internet in the hands of the "average joe". Capitalists whose wealth exceeds that of whole countries, who think that the power this gives them puts them above governments and society, are finding that concerted grass-roots effort is a force to be reckoned with. Even if they hit back, the genie is out of the bottle, like Martin Luther King's final speech.

It will prompt an inevitable rethink of the bricks-and-mortar model. As I understand it, the original impetus for the Reddit campaign came not from the critics of hedge funds, but from ordinary gamers who didn't want to see their favourite store close. They could, of course, simply have shopped there a little more often.

Has anyone considered that it's not exactly bad publicity for Gamestore, whoever owns it?
Good post and all great points.
Not sure the big banks are what people think they are, I reckon most of their trading is automatic or done behind a screen rather than in shouting pits with people baying for blood.
Shorting is just a shitty thing to do, I personally see it as a real negative - not just literally but in terms of outlook. Look for something to back, rather than something to hope fails. Back Man U to score 3 goals, not Arsenal to concede 3, for example.
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Old Jan 31st 2021, 11:37 am
  #40  
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Default Re: Gamestop trading

Originally Posted by Scamp View Post
Not sure the big banks are what people think they are, I reckon most of their trading is automatic or done behind a screen rather than in shouting pits with people baying for blood.
That's true. How does this sound:

So Mr Trotter, it seems you ordered one billion pounds worth of Walker's crisps, without having the money to pay for them?

Wasn't me m'lud! It was me 'puter wot done it!


Ultimately what hedge fund trading ultimately comes down to is the question of "value".

For the working man, the value of something is how much of his hard labour it has cost him.

For the businessman, the value of something is what someone else is prepared to pay him for it.

For the investor, the value of something is how much wealth it can potentially generate in the future.

For the hedge funder, the value of something is what some idiot might be prepared to pay some other idiot for it.

Computers only do what they're told. They just reflect the underlying logic, which in this case is flawed. As philat98 said yesterday, Bitcoin is just a pump and dump operation, but it doesn't stop that bastion of unbridled neoliberal capitalism, the Guardian, from regularly talking about Bitcoin's "value".
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Old Jan 31st 2021, 12:59 pm
  #41  
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Default Re: Gamestop trading

Originally Posted by Watchpost View Post
That's true. How does this sound:

So Mr Trotter, it seems you ordered one billion pounds worth of Walker's crisps, without having the money to pay for them?

Wasn't me m'lud! It was me 'puter wot done it!


Ultimately what hedge fund trading ultimately comes down to is the question of "value".

For the working man, the value of something is how much of his hard labour it has cost him.

For the businessman, the value of something is what someone else is prepared to pay him for it.

For the investor, the value of something is how much wealth it can potentially generate in the future.

For the hedge funder, the value of something is what some idiot might be prepared to pay some other idiot for it.

Computers only do what they're told. They just reflect the underlying logic, which in this case is flawed. As philat98 said yesterday, Bitcoin is just a pump and dump operation, but it doesn't stop that bastion of unbridled neoliberal capitalism, the Guardian, from regularly talking about Bitcoin's "value".
I couldn't agree more to be honest. You're right, someone has to make the calls ultimately.

I love the idea of sticking it to 'the man' but I'm also much of a realist and it's like smoking, there's too much money made and lobbied by those behind it and in the higher echelons ('the men' if you will) that will ever see real change made.

There'll be a trading law in a country somewhere that allows it, even if the US or UK banned shorting stocks. I mean, the whole Gamestop business is surely doomed to fail anyway, who goes to a store and buys a physical game? You either download them on the system or order on Amazon and feed Mr Bezo's kids.
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Old Jan 31st 2021, 5:51 pm
  #42  
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Default Re: Gamestop trading

I have a couple of questions on this, which might help me know if I understand all this or not..

1. Presumably there are people, or organizations, who say; "in 60 days I want to buy Gamsestop at todays price-x" it just seems oddly precise, its not like a corn dealer wanting to guarantee costs of corn in the future. Is this a reflection of what they think the price is worth, if so why not just wait for it to hit that level, if it doesnt, then buy something else.
2. if there is a market for Gamestop in 60 days at todays price-x, then it makes sense to sell today and buy the at the future lower price, thus lowering the current market price; is this how speculators crash share prices?
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Old Jan 31st 2021, 5:59 pm
  #43  
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Default Re: Gamestop trading

The same rules have always been in place since forever.
What has changed is the availability to organise mass action using easily available digital means.
It's going to be the new game of the century, and one that can be played over and over again.
1. Wait and snooze.
2. Identify a stock that's heavily shorted.
3. Broadcast a wake up call.
4. Buy.
5. Watch as hedge funds scramble to minimise losses.
6. Sell.
7. Goto 1.
Of course hedge funds, and others, will still remember the days when they could get rich for doing bugger all, but like the rat swimming in a sinking ship, something has changed.
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Old Jan 31st 2021, 6:02 pm
  #44  
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Old Jan 31st 2021, 10:27 pm
  #45  
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Default Re: Gamestop trading

Originally Posted by kimilseung View Post
I have a couple of questions on this, which might help me know if I understand all this or not..

1. Presumably there are people, or organizations, who say; "in 60 days I want to buy Gamsestop at todays price-x" it just seems oddly precise, its not like a corn dealer wanting to guarantee costs of corn in the future. Is this a reflection of what they think the price is worth, if so why not just wait for it to hit that level, if it doesnt, then buy something else.
2. if there is a market for Gamestop in 60 days at todays price-x, then it makes sense to sell today and buy the at the future lower price, thus lowering the current market price; is this how speculators crash share prices?
I think it goes like this.
You, a predatory hedge fund, identify a target stock, we'll call it Gamestop, whose price you suspect will be sensitive to share sales because it's not doing well.
You purchase an option to buy shares of this stock at a set price at any time from now until when the option expires. This option will cost you only a small fraction of the actual cost of a share and there's the attraction, for a small initial outlay you stand to make large sums if you can engineer a significant fall in share prices.
You then sell shares you do not have in the understandable belief that the act of selling will, if enough shares are sold, cause the share price to fall. It's self fulfilling supply and demand. If shares flood into the market then the price will fall until it attracts buyers.
Once the share price has fallen sufficiently then you exercise your option to buy and pocket the margin between the difference in price less the cost of the option.
Thus if you have sufficient capital or can assemble enough like minded sellers and you can 'short' enough of the stock by selling enough shares then the price must fall and you clean up...
Unless, that is, you attract the attention of those unwilling to allow the price to fall and have the resources to engineer a price increase. This can be achieved where enough buyers can be assembled to buy at the same time. Note that where enough buyers can be assembled none need be wealthy, there is enormous strength in numbers, and it's the existence of the web that allows this to happen.
When the share price rises then... remember those shares you sold that you didn't own? Well when judgement day comes around, as it inevitably does, you will need to buy back those shares at the new higher level, you must settle your trades by settlement day. It's a beautiful consequence of the market that you've exploited for so long that your inevitable need to buy will serve to increase the price still further increasing your losses.
This is what happened to Gamestop where it was reportedly shorted to the extent where in excess of 100% of all shares then existing had been sold by people who didn't own them.
And the little people who bought? Well some will make large sums, many will lose some, but the myth of being able to make large amounts of cash will ensure that, like the gold rush of old, new 'miners' will keep coming with new money.


Last edited by dave_j; Jan 31st 2021 at 10:29 pm.
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