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/biz/ - Business & Finance

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27445322 No.27445322 [Reply] [Original]

After realizing I am an idiot for putting money into something I didn't fully understand I have spent the last fews days researching everything I can about the stock market so I don't let my greed get in the way of my intellect again. I'm trying to fully understand what exactly reddit is trying to do here.
Please tell me if I got something wrong.

All these Hedgefunds see these stocks that they believe are going to decrease in value. They short the stock and buy shares at it's current market price, expecting it to go down in price. They sell the shares, then buy the number of shares they just purchased at its lower market price, allowing them to close the position holding both the shares and the profit.
However with reddit buying up the price, they are no longer able to buy the shares for lower and are forced to hold their positions until the price lowers again or to a point where they are comfortable with the loss, taking it and closing the position. However with the price as high as it is, they cannot buy at the current rate realistically and are forced to sit on their ass trying to kike the price down to a point where they can escape their position with minimal losses or a profit.
Eventually however they will incur enough losses that a margain calls happens, meaning their investors are sick of losing money and pull out. At this point they have literally nothing they can do but purchase all of our held stocks at whatever price we have set.
So this is the big squeeze reddit keeps prophecizing and far as i can tell only plan anyone has anywhere.

WHY THE FUCK WOULDN'T YOU HOLD? STOP DOOMPOSTING. You entered into a game of billion dollar chicken, are you seriously going to back out of it after a few days? If you hold they literally cannot win.
Why doesn't WSB put a fucking explanation like this on the front of their subreddit? It would actually make people know why they're holding.
Tell me if i'm getting something wrong thanks.

>> No.27445438

>>27445322
do you have brain damage? gamestop is a worthless dying overvalued company

a bunch of redditors are gonna go broke

>> No.27445497

you have brain damage

>> No.27445556

>>27445322
God i wish i was a pretty girl

>> No.27445563

>>27445322
I'd sell gme if you bought/spent a lot of money. hold amc till wed/thurs

>> No.27445600

if you don't understand time value of money, bond/equity pricing, and what is a good return you should realize you are completely out of your depth in investing
these are all fucking words and money is a number and the people who understand money use numbers to predict

>> No.27445611

>>27445438
power to the player my niggah

>> No.27445652

am I seeing nips or is it just shadows or the fa rice or some shit?
shes hot now but I'd bet she ages like milk

>> No.27445676
File: 32 KB, 338x654, 1610416897169.jpg [View same] [iqdb] [saucenao] [google]
27445676

>>27445322
>HODL after it peaked
>buy low/ sell high
/biz/ would be proud

>> No.27445770

>>27445322
>I have spent the last fews days researching everything I can about the stock market so I don't let my greed get in the way of my intellect again
Good. Learn everything from Warren Buffet, Charlie Munger, Peter Lynch. Read Random Walk Down Wall Street.
Then you'll be set for life. Look at stocks as businesses. Then you'll realizing looking at each company balance sheet is too much time. Just do indexing.

>> No.27445785

>>27445652
*fabric
almost outed myself as a poo, that was close

>> No.27445877

>>27445438
>>27445563
I'm out of GME. I made even and am happy on that.
I'm holding on AMC, if I lose I lose. I literally can't see it as anything but a gamble right now that seems worth the risk.

>>27445600
Probably. I'm going to read a textbook and consult an actual advisor. Maybe try looking into ETFs.
I'm looking at worst 150$ loss if everything goes tits up and i'm happy with that.
I learned so much this last week, a baptism by fire.

>> No.27446132

>>27445322
>All these Hedgefunds see these stocks that they believe are going to decrease in value. They short the stock and buy shares at it's current market price, expecting it to go down in price. They sell the shares, then buy the number of shares they just purchased at its lower market price, allowing them to close the position holding both the shares and the profit.
This shows that you already don’t fully understand exactly how shorting takes place. Walk before you run.

>> No.27446189

>>27445322
You sound pretty fucking dumb, used the wrong words and almost everything you said is ass backwards. Lurk for another 10 years at your rate.
>They short the stock and buy shares at it's current market price
sell shares they borrow, then pay rent fees until they decide to close their position at the desired lower stock price for a profit.
>However with reddit buying up the price
reddit pumping up the price.
>Eventually however they will incur enough losses that a margain calls happens, meaning their investors are sick of losing money and pull out.
If a bank or broker is collecting insane fees for lending stocks to sell to shorters, why do they care if the short position isnt closed? The hedgies will just pay the fees until the time is right, rather than purchase stocks at a buyer own insane rate. They save their loses and can issue more shorts at these new insanely overvalued rates to make a killing.

>> No.27446314

>>27445322
>They short the stock and buy shares
No. Short selling is the borrowing of shares which are then sold at the current market price and repurchased later to satisfy their creditor. If the shares are repurchased for less than initially sold, they earn a profit.
When reddit buys shares, they push the price up by outbidding each other. Short sellers see this and begin repurchasing shares to cover their debt, which pushes the price up, and causes them to lose more money on their short position.
There is no requirement to repurchase, only to pay interest on shares owed and maintain enough liquid capital to meet their margin maintenance. A short seller can sit and wait it out or take the loss by buying shares.
>Eventually however they will incur enough losses that a margain calls happens, meaning their investors are sick of losing money and pull out.
That's not what a margin call is. Eventually, yes, a margin call will happen if they continue losing but it probably already did.
>purchase all of our held stocks at whatever price we have set.
Zero percent true. Please delete this worm from your mind.
>WHY THE FUCK WOULDN'T YOU HOLD
Because the squeeze already happened and the game now is musical chairs as all these people who bought super high sell into each other.
>If you hold they literally cannot win.
Zero percent truth, another worm to delete.

>> No.27446566

>>27445322
Here's a hint for you, retard:
Nobody gives a shit about you. There is no team. You're not all in this together. Every single one of those faggots is hoping to get rich. That's all this is. They're looking out for #1, and in the end it's simps like you who hold bags.

>> No.27446765

>>27445322
>They short the stock and buy shares at it's current market price, expecting it to go down in price. They sell the shares, then buy the number of shares they just purchased at its lower market price, allowing them to close the position holding both the shares and the profit.
Redditors I swear to God

>> No.27446815

>>27445322
>don't let my greed get in the way of my intellect

You're a humble motherfucker aren't you? I'm sorry, why did you barrel into a get rich quick scheme without so much as a second thought? Right, your superior fucking intellect. You're a dumb fuck.

This thread is pointless. Lurk, read shit online, learn to be a big boy and figure things out for yourself.

>> No.27447017

This is why I lurk.

thanks guys.

>> No.27447076

>>27445322

And another good point that this guy touched on:
>>27446765
The only reason I didn't point this out myself was because I instinctively skimmed through most of your bullshit post, OP. You can't fucking write for shit. Go read books and learn how to write properly before posting your fucking braindead ape diatribe on how much of an ignorant dumbass you are.

>> No.27447143

>>27446189
>>27446314
>If a bank or broker is collecting insane fees for lending stocks to sell to shorters, why do they care if the short position isnt closed? The hedgies will just pay the fees until the time is right, rather than purchase stocks at a buyer own insane rate. They save their loses and can issue more shorts at these new insanely overvalued rates to make a killing.
>No. Short selling is the borrowing of shares which are then sold at the current market price and repurchased later to satisfy their creditor. If the shares are repurchased for less than initially sold, they earn a profit.
When reddit buys shares, they push the price up by outbidding each other. Short sellers see this and begin repurchasing shares to cover their debt, which pushes the price up, and causes them to lose more money on their short position.
There is no requirement to repurchase, only to pay interest on shares owed and maintain enough liquid capital to meet their margin maintenance. A short seller can sit and wait it out or take the loss by buying shares.
So then did reddit ever have a plan here? Will there ever really be some magical amount of losses where the hedgies will be forced to sell?

>> No.27447188

>spoonfeeding newfags
The fuck?

>> No.27447211

>>27445877
AMC doesn't seem worth the risk. Get out before it slowly trickles back down and you have to wait 1-2 years in hopes that it comes back a bit

>> No.27447401

>>27446815
>I'm sorry, why did you barrel into a get rich quick scheme without so much as a second thought?
Read my post again. It's one of the 7 sins.

>> No.27447403

>>27445877
Read "A Random Walk Down Wallstreet" and "The Millionaire Next Door" before you decide to YOLO your lifesavings on meme stocks

>> No.27447517

>>27447403
Thanks I will. I only gambled what I could afford to lose, but please keep calling me a retard it helps cement the lesson I learned.

>> No.27447682

>>27447517

Well, you should also read "The Black Swan", since Taleb suggests an approach where 90% of your assets are in super-safe, barely better than inflation assets like bonds, then using the remaining 10% for gambits that gradually lose you small amounts of money but have the chance to pay-off huge.

>> No.27448188

>>27445322
Read Scrooge McDuck

>> No.27448771

Everyone gets one Ponzi scheme to fall for OP.
Let this be your one you fucking retard.

>> No.27448804

>>27445322
Posts like this reminds me why /biz/ doesn't matter. A1 for the memes, but as far as actual investing, this board is filled with financial illiterates like OP gambling a few hundred $ on shitcoins based solely on hype.
Now and and then there are a few nuggets of gold in the shit, and a few and far between anons with actual knowledge. But less know than a few years ago.

>> No.27448935

>>27448804
It's full of desperate poors and thirdworlders throwing money at coins and hoping number go up

>> No.27449032

>>27445322
>why the fuck wouldn't you hold
Because what you're holding is worthless and being the last retard to hold the bag means you'll lose all your money fucktard.

Your seethe and gnash over the fucking hedgefunds without realizing all you're fucking doing is the exact same thing except your making a bet that gamestop is going to be magically worth something in the future because some retarded red dit mongs wanted to play some games to 'stick it to the man'.

A fool and his money are soon parted.

>> No.27449096

>>27445322
ITT: Retarded zoomers first foray into tulip fever.

>> No.27449252

>>27445322
>you entered into a game of billion dollar chicken
Except you don't have a billion dollars unlike the hedge funds so you lose when you blink. And you will blink.

>> No.27449710
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27449710

>>27449252
>>27449096
>>27449032
Thank you so much.
My last paragraph was the last of my doubts and they've been spoonfed out of me. If I can get out of AMC at 16 tomorrow then 80$ profit made. I'm talking to an actual broker and investing it in something safe.
You will not see me post here again.

>> No.27449796

>>27447143
>So then did reddit ever have a plan here? Will there ever really be some magical amount of losses where the hedgies will be forced to sell?
The stupid theory is there are less shares out there than being borrowed and the stock is shorter more than shares exist. Meaning if a short position needed to buy everything back, everyone selling could ask their price and be trillionaires. Someone posted saying that's a technicality, and that both the borrowing (short position) and lender of the stock claim ownership of the stock so that's why you get a percentage over 100% stocks. Also gamestop can just issue more stocks whenever they feel like it, for whatever reason.

>> No.27449906

>>27449796
They can, (and should have) diluted the shit of the stocks to get more capital due to this retarded reddit mess.

>> No.27450039

>>27445438
HURR DURR HOLD THE LINE BUY THE DIP

>> No.27450163

>>27449906
Well you can just read up an infinity squeeze of Volkswagon and see if there are any similarities between that and gamestop. Some think so, some dont. Also, I've only studied this in the past week, so I'm a newb too but I think I got most of it down, just trying to figure it out cause its interesting. I went into AMC with stimulus money

>> No.27450165

>>27445322
I'm gonna wait for all the normies and indians to leave for 2x gains. And get in around 160..

>> No.27451418

>>27445322
the squeeze was from 10 to 450. It has already happened, and the hedge funds that entered the short position at 10-20 have covered.

But, other funds have entered new positions at 250-350 so that they can profit when the price falls. So the overall number of shares short has not gone down much, but, the price at which they entered those shares has gone up, meaning that in order to squeeze again we would have to push the price up to 650-750 range or even higher

>> No.27451431

>>27450165
Sure thing keep trying to time the market. That has worked so many times before.

If you really want to invest without knowing anything. Buy some fucking ETFs and shut the fuck up.

>> No.27451494

>>27445322
I just fell in love with this whore

>> No.27451696

>>27445322
if i squint really hard i can see her nipples

>> No.27451939

>>27451494
She isnt a whore she is just brainwashed by propaganda.

>> No.27451940

>>27445770
investing on fundamentals like those guys really takes alot of capital to start and pay bills and make a living doesn't it? What are the guys starting out with small accounts to do? 20% a year like Warren Buffet isn't going to cut it.

>> No.27452026

>>27451940
Yes, and if you don't want to actively manage your assets. Buy ETFs and shut the fuck up.

>> No.27452135

>>27452026
This is literally the single best piece of advice newfags are ever going to get from anyone on this board.

>> No.27452354

>>27448804
any advice on internet forums to go to to learn and discuss finance?

>> No.27452402

>>27452354
Don't go to internet forums. Go intern at a stock broker.

>> No.27452523

>>27445556
Can you even imagine how high your self esteem would be

Or how easy life would be in general? God I wish that was me too

>> No.27452584

>>27452026
What if you want to actively manage your assets and are starting with a small account? Best way to make a living through trading to then put any extra gains after bills into long term investments in ETFs etc?

>> No.27452591

>>27447682
Taleb also thinks IQ is a thing that doesn't exist because he's from a low IQ country. He's super smart.

>> No.27452703

>>27452591
There is a video on YouTube of Taleb and Shiller in an interview together and it really exposes Taleb as a midwit.

>> No.27452720

>>27445438
This. Nothing from Reddit bares fruit and SMG shilled GME in 2020 but expected too sell by Q1 2021. Same with TSLA before stock split and they called NIO at $15. You aren't a special NEET who discovered some illegal action to bank off, you're just a bagholder to somebody who shilled you first. Ponzinomics never change.

>> No.27452964

>>27452584
>make a living through trading
Go intern at a stock brokers and get your license, you don't make a living through armchair stock trading.

Or you know, get a fucking job with stable income.

Put $30 a day into a few ETFs. As you get more disposable income put more into it.

Live healthy and long and eventually your ETF porftolio will start earning you more than you can ever earn working then you can retire happily.

>> No.27453078

>>27452964
Yeah and as you get older you'll want to park your money into safer investments like bonds to insulate you from major financial crashes which will burn a big hole into your ETFs. Then again that only happens once a decade usually.

>> No.27453425

>>27452964
And what if I want to enjoy my life while I'm still young and before everything goes to shit?

>> No.27453508

>>27445556
>>27452523
fags

>> No.27453523
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27453523

>>27449032
So you clearly know more than everyone...so post your pits. You did buy put options, right?

Post them. Because you're definitely right... Aren't you? So put your money on it.

Right?

>> No.27453538

>>27453078
thanks anon thats what I plan to do. I am trying to develop a strategy for scalping futures and potentially automate the strategy and then put all the gains into long term investments. Slowely learning the investing main focus is the futures market though. Is developing a purely TA strategy scalping futures to make a living too much of a pipe dream?

>> No.27453688

>>27452964
30 dollars a day for how long?
care to elaborate?
I just got a "lot" of Neet money because i lost my father and now i get 1.6k monthly and would like to invest at least half on my money, i I want to move to thai, 300$ for apartment, 150$ for muay thai classes, 100-200$ food, 100-200% drinks.

technically i already have "enough" money but id rather not bet on our current business to hold up forever.

>> No.27453739

>>27452523
>pretty girl
>high self-esteem
oh no no no. they don't know.

>> No.27453782

>>27453425
>what i I want to enjoy my life while I'm still young and before everything goes to shit

Then enjoy it and spend your old age in a shithole.

>>27453523
>So you clearly know more than everyone
No, I'm just doing what most people do which is to save and invest in well diversified funds. You do realize that ETFs are basically the same as your 401k plans right except there are no management fees because the buying and selling are done by robots that try to ape the big investment funds and not a fund manager buying a yacht from your retirement funds.

>> No.27453796

>>27445322
Idiot

>> No.27453797

>>27446815
I bought two shares after I watched its market be deformed by Robinhood---I know what they said about liquidity requirements, this is simply an issue of WHERE the blame goes, not that SOMEONE needs to be blamed for the unequal access to the market, and saying 'well, gosh, you didn't realize that things like the speed of your carriage to market matter? What an idiot!' is not addressing that it's obviously not an MMORPG designed for this many players to make the moves they made, if it was an online game, it would've crashed, get it?

The only way to reverse engineer a system is to interact with it---profit is one motive, but it isn't the only motive, and I am fascinated by the deformation caused by a couple of websites, and then, over the weekend and now, the media. I mean, it's like exactly what that guy Cramer says he'd do if he were a Hedge fund guy and were down, in a video. Does that mean it's what's happening? Of course not, it could be dropping because people don't want to pay that much for it. But no one really knows.

>> No.27453890
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27453890

>tfw got in and out of GME in < 3 days and 300% my account

What was that about time in the market vs timing the market?

>> No.27454013

>>27453425
Get a job, be intelligent about spending your money. You can easily do a nice holiday every other year and still have decent growth in your bank account if you don't spend a ton of money on clothes, food and shit like that.

>> No.27454046

>>27453688
$30 a day is not much if you have a steady income. If possible push it to $50.

It's basically a growing piggy bank. Bank interest is shit so might as well put the money in stocks and ETFs are a pretty safe way to do it.

If you wanna go casino gambling with the other fucktards go make bets but if you want steady gains with relative safely go ETF, ETFs are basically funds that buy one of every fucking share in the exchange. Unless the entire market crashes you're going to make gains.

>> No.27454104

>>27453688
>drinking alcohol
You've already lost.

>> No.27454204
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27454204

>>27453782
So... You aren't willing to put money into put options but you claim to be right yet out of your wittle butthole you say you only make sound investments.

If you're right, wouldn't put options be a sound investment?

Oh wait... You're not really sure of anything, are you?

>> No.27454353

Tldr never selling tho

>> No.27455679

>>27445322
GME is a meme stock pushed by retards who have no concept of hedging strategies. It's call WallStreetBETS for a reason. I've been warning this board since last Tuesday not to go in on this meme unless you just want a single stock for the lols. What the hedgies did is very easy to understand, I use a similar concept for forex. Because the hedgies have such deep pockets they can use a Martingale hedge. Which means, they double down on a position knowing the counter parties have less operating capital than they do.

When the price goes up, they buy into the stock to 1. clear their shorts and 2. to send a bullish price signal to the market. Once they have cycled out of their short positions at a massive loss, they take their profits on their long positions and start a short ladder back to around the valuation of the company.

Because they have deep pockets and use hedging strategies, they will make more money out of this volatility than if the price went to $10 and then froze. Retards at WSB and elsewhere just handed them a huge paycheck because at the end of the day, retail traders are always paperhand bitches.

>> No.27455891

>>27445322
Except you don't hold all the shares, other companies do, and they're not fucking delusional, like you. They can always bounce stocks back and forth in the dark pool, in fact, they already did, if shorting GME at 6$ looked like a deal, imagine not shorting it at 300$. "Trust the plan, two weeks ". Max kek.

>> No.27455969

>>27445438
The company itself is not dying lol this was the whole idea why the big boys made plays awhile back.

>> No.27457101
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27457101

>> No.27457282

>>27445322
>WHY THE FUCK WOULDN'T YOU HOLD? STOP DOOMPOSTING.
>Tell me if i'm getting something wrong thanks.

You're not realizing that they hired an army of shitposters to flood WSB/4chan/etc. to shill and demoralize. They have tens of billions of dollars on the line so of course they are going to go all out and use any means necessary.

>> No.27457298

>>27445322


This is a great Copypasta. Ctrl C + Ctrl V Saved. Thanks enjoy your bags

>> No.27457399

>>27445322
2/10 would not bang

>> No.27457430

>>27454204
You seem real aggresive, go put your money into the casino, mix around and pretend you're getting ahead because you're smart and not lucky.

Me I prefer to retire early and comfortably.

>> No.27457485

>>27457399
desu she has a very weird face irl, you dont see it in these vids

>> No.27457537

>>27457282
>to shill and demoralize
It takes 1,000,000 of you $100 to make a billion dollar investment in GME. The hedge funds have lost 12 billion.

Have fun herding 12 million stray cats into doing your will.

>> No.27457672

>>27445322
>stock market
Don't play that rigged game dumbass.

>> No.27457713

>>27457537

You don't have to get everyone to do your will. You just need to break ranks and demoralize and offer temptation. Divert people into silver/AMC/nokia/whatever , force the price down and convince people to sell before they're left with the bag to start a cascade, and so on. It's a prisoner's dilemma with millions of people.

>> No.27457726

>>27454204
>messing around in futures
That's just making bets, that's not sound investment.

Go play more blackjack and remember to take out loans to fund your habit too.

>> No.27457765

>>27457713
>break ranks and demoralize
This is all /pol/ retardation that doesn't actually work except in their own schizo minds.

The truth is that it's a big pump and dump of a worthless stock. Tulip fever 2021.

>> No.27457958

>>27457713
The thing is, you can do it once.

People get burned and they get out. It fizzles out once the capital is exhausted.

Yeah you fought and won against the hedge funds for a couple of days.

Hedge funds trade every day except when the markets are closed. Now they get to Short gamestop at $350 instead of $11.

Bonus prize for those who got in late and made losses get back 20 cents on the dollar.

>> No.27458421

>>27457765

Worthless based on what, fundamentals?
The fundamentals don't matter if someone is obligated to pay out because they're 150-250% short on the total market cap.
It's a guaranteed pay out if everyone would hold, but everyone won't hold because individually it makes more sense for them to sell out.

>> No.27459085
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27459085

Lost $25 on this meme shit made more on another.
Put it all back into stocks and trying to win small victories.
I wanna try turning my $400 into $700 wish me luck pls.

>> No.27459508

>>27458421
>fundamentals don't matter
They actually do, otherwise you're just gambling.

If you like gambling, go to a casino put all your money on black and shut the fuck up if you lose.

>> No.27459625
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27459625

>>27459508
Hey now sir, I have a very keen sense of pattern recognition and I think I'll do alright.
Faggot.

>> No.27459751

>>27445438
>>27445497
Oh look another shilling campaign on /biz/

>> No.27459790

>>27445322
Gamestop already peaked. If you keep holding, you're going to lose money.

>> No.27459841
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27459841

>>27445322
All women are whores.

>> No.27460473

>>27459841
Now I need to fap.

>> No.27460582

>>27459841
Its all PEPEs...

>> No.27461534

>>27445556
>>27452523
You will never be a woman

>> No.27461572

>>27445556
You can still be my pretty girl, anon.

>> No.27461626

>>27445556
If you wanna suck cocks so bad just go to the local truck stop bathroom.

>> No.27461704

>>27445322
Because the hedge funds covered their shorts almost immediately and are now manipulating the stock and shorting it even more to recoup their losses. It wasn't just retail pumping it, but also competing funds. Idiot. They never had to sell on friday. They were never going to wait it out and get forced to cover margin calls. If you were a hedge fund, would you rather:
Cover immediately lose 50% of your money, then short it again at pumped up highs and make as much back as you can
Wait until you have to cover and potentially lose 5000% of your money

>> No.27461934

>>27461704
Also, you can safely ignore reddit when they say this
>impossible! those shares dont exist! that's illegal!
SEC don't care (until this shit goes back to 11)

>> No.27462594

>>27459625
>I think I'll do alright
Said every gambler ever before they lost everything.

>> No.27462784
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27462784

>>27445322
Jesus Christ bros what does sex feel like?