The amount of autism and r-word jokes in this world is genuinely disgusting.
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The amount of autism and r-word jokes in this world is genuinely disgusting.
I had to add that reddit to my filter /r/all filter list. It got worse after the crash the last couple of days.
At a simple enough level (most retail investors), yes it is, and suggesting otherwise is quite disingenuous.
When you have to tell an individual the same financial advice (only risk what you can lose), the two items are functionally the same thing.
Of course there are distinctions, but the comparison of investing and say, Texas Hold-em is apt, especially for most retail investors.
I say that as someone who had a fun time deciphering 10Ks in college (maybe I should have gone into finance instead of IT), and who has a couple of aggressively leveraged (but within tolerable risk levels) investments.
There is speculation that the 'bad guys' were heavily invested in Silver and so pushed that narrative to both divert from GME and also to get some cashflow in.
Saw some posts on WSB that showed either Melvin or another Hedge Fund heavily invested in silver, bot accounts spamming the same comments muliple times a second across different posts and the dots could align to paint that picture.
If you do your due diligence you can invest for real, which is different from gambling.
For example DeepFucking Value didn't gamble on Gamestop. He did a technical analysis which revealed that the company was undervalued on the stock market based on the fundamentals (revenue, book value, FCFFs, etc.) present in the financial statements. On top of that others realized that there was an opportunity to perform a short and gamma squeeze.
I agree with you that trading with a random stock during the day or even a week is pretty much gambling. The biggest problem is that there is a massive lack of financial education (on purpose probably) and a lot of retail investors think they can invest in stocks based on random advices on the internet/banks and so on. This is wrong. If you don't know what you are doing you should not touch the stock market.
Companies like Black Rock have shitloads of this share, they know it isn't worth the current price and would benefit greatly from unloading a whole bunch of stock.
This stock has been on the no-shorting NYSE list for two days (though I don't know how this holds up) and dropped more than it ever has. Today it was supposed to go off the list and it hasn't dropped much.
I was reading articles earlier not to do with GME that mention algorithmic trades. Where you want to unload a bunch of stock so it does it over a time frame in bundles to not crash the price as much as a market sell would and gives you better value. Maybe that was what people were seeing as a ladder attack? I'm not sure. I thought they were supposed to last a bit longer than the rapid drops we saw.
What I'd love to know is how DeepFuckingValue knew months ahead of time that Januaray 2021 would be the month it jumps.
This stock has been on the no-shorting NYSE list for two days (though I don't know how this holds up) and dropped more than it ever has. Today it was supposed to go off the list and it hasn't dropped much.
I was reading articles earlier not to do with GME that mention algorithmic trades. Where you want to unload a bunch of stock so it does it over a time frame in bundles to not crash the price as much as a market sell would and gives you better value. Maybe that was what people were seeing as a ladder attack? I'm not sure. I thought they were supposed to last a bit longer than the rapid drops we saw.
What I'd love to know is how DeepFuckingValue knew months ahead of time that Januaray 2021 would be the month it jumps.
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The term "Short Ladder Attack" is totally new, it seems?
Reddit - Dive into anything
www.reddit.com
No Google results before this whole debacle. A "short attack" is something different that doesn't apply to Thursday, I guess, based on both the volume and the situation (shorting when low is way different than shorting when at 100x).
This is fascinating. I particularly salute the dude who only found articles about medieval battles. I had never heard about it before GME either and just assumed it was some obscure reference to widespread corruption or other establishment conspiracies.
There is no such thing as a ladder attack. All firms will unload shares via smaller blocks if possible. If you just put out a pure sell order at 1M shares you would tank the price as the MM tries to line up bidders at lower and lower prices to meet your market sell demand.
DFV knew that January was when a bunch of shorts were coming due. He didn't know it would go to 400 but he did know there would be some upwards price pressure.
Now for my non-expert view:
If you want to unload or load up, there's certainly a case to be made that it is best to do it strongly. Sell a little, let other people's algorithms and orders push the price back up, sell some more, and iterate. Lots of algorithmic trading is just weird counter-balancing stuff like high-frequency trading. If you want to sell, you want to do so without tanking the price. If you want to Buy a ton, you want to do it such that the price doesn't increase until after you've executed all of your buys, not during-- you'll very quickly run out of orders near what you want to pay and end up having to buy at a higher price. There's definitely an element of this to be seen playing the World of Warcraft auction house, where you don't want to buy out all of the low items so that future items that get listed tend towards the lower price.
Others have raised this point, but I agree that Thursday's drop was probably a bunch of institutional investors unloading their positions without a bunch of amateur chumps buying via Robinhood. Robinhood likely saved their would-be customers a ton of money by not having the liquidity to support their lopsided buys at the peak of a super a volatile stock.
Is there a good video or course to take that covers the stock market in a more-in-depth-way-but-not-holy-shit-kill-me-way? It can be long.
Not interested in investing myself, but it's fascinating to me.
AMC was certainly a very stupid gamble. I knew this last Thursday and held nonetheless.
Anyway... back to my super boring parked positions in companies like Oracle. My biggest risk stock is CCIV.
Investing in AMC was a learning lesson for me. Luckily I can afford it and thankfully I only invested a small amount. Still is frustrating liquidating a loser when all my other positions are profitable.
Anyway... back to my super boring parked positions in companies like Oracle. My biggest risk stock is CCIV.
Investing in AMC was a learning lesson for me. Luckily I can afford it and thankfully I only invested a small amount. Still is frustrating liquidating a loser when all my other positions are profitable.
Because it's still got a long way to fall. It's trading at 3x levels from the last few months and the stock has been massively diluted in that time, it could easily slide to $2 from where it is.
Can I just probe you on this because I'm trying to educate myself. GameStop's Book Value Per share on the latest quarter is $5.1 at least on the data im seeing. How is gamestop undervalued with a usually share price of $4 and a bit dollars. Am I misunderstanding?
Because I put the $150 to better use. 5 more shares of CCIV at $25.
Investing in AMC was a fools errand on my part and goes against my investment philosophy. I'm not going to waste my time monitoring a shitty stock.
Makes sense. I never invest enough to be all that concerned with where my stocks are at. I typically just ride it out
The tax impact is for the year where you sold the stock. So you'd be able to apply up to $3k toward 2021 taxes (filed in 2022); anything over $3k is carried over to future years until used up.
I invest roughly $800/month. It's not that much either comparatively to others. My plan isn't to get rich overnight, rather diligently build my wealth through long positions.
As somebody with a formal, secondary education on it ... not really. If you're approaching the stock market from an amateur perspective, just know the basics. It's best to have slow, unsexy, consistent returns with a widely diversified portfolio. If your company offers a 401k, then there you go. Just dump money into that and enjoy the growth. If you decide that day trading is for you, just know that an overwhelming majority of the time you will be acting on information that is late by the time it arrives to you. In other words, buy and hold. Many people will masquerade as experts on the stock picking, so be careful when you see people hyping up day trading as it is a game that is dripping with survivorship bias.
Depends if you are more focused on the plumbing (you probably don't want to go here has it gets wonky quick), but the below video is a pretty good and short summary of how the market works:
https://www.youtube.com/watch?v=hmNfjjEhcNY&feature=emb_logo
By that logic you could say there's a lot of bot-like posts saying to hold, 💎🙌, fake news, etc.
As for the hedge funds (or whatever entity), I think it was Citadel, aka the boogeyman in the shadows behind Robinhood (not really but let's just stick with that narrative here too). Someone pointed out they were of the largest shareholders in silver...course I also saw elsewhere that their huge damning stake in silver made up a fraction of a percent of their portfolio.
It's still technically gambling cause there's no guarantee things will work out. You can be educated and/or conservative and make better bets, but at the end of the day it's just reducing the risk and giving yourself better odds on what are essentially still bets.
The main things improving odds are simply time and diversification. Overall historically the market usually just goes up over a long enough span of time, and diversifying cancels out the chance of poor picks that die out.
Holding is a fine strategy if you believe in a company and think the price is fair. If you don't ultimately there's no reason to hold, they're just dead weight that could be put into something else. Fake edit: saw your other post, I typically ride it out too (...one of the few times I didn't was AMD about 1/45th value ago 🤦♂️), but there are cases that just feel like a potential dead end so better to just cash out the gains while you can.
lol
Check out udemy.com, this one seems potentially good
Investing In Stocks Class: The Complete Course! (11 Hour)
Master Stock Market Investing & Trading in the Stock Market with Stocks, Mutual Funds, ETF, Top Instructor & Millionaire
www.udemy.com
Just wait for the next sale as udemy always has them which brings the price down drastically.
Man that post on there about how someone could have sold for 500k last week but didn't and to keep holding because they did is messing me up.
You had it, once in a life time. Feel bad for those people.
You had it, once in a life time. Feel bad for those people.
I was so close to getting into this a little bit last week. Thank god I kept it together lol
Honestly, if you got at the beginning and sold on Friday, you could have gotten an absurd amount of money, but the cult like idea of holding the subreddit had was... something else.
Honestly, if you got at the beginning and sold on Friday, you could have gotten an absurd amount of money, but the cult like idea of holding the subreddit had was... something else.
Yeah to be honest if I had been on the train at a "good" moment, and had some gains like many had (maybe not life-changing, but for sure life-easing), I would have been out no question.
That was the kind of sentiment that made me jump into the stock when it dove after the RH shutdown.
I'd initially thought the stock was too hot to touch, and that everyone was cheering the run up but had at least one eye on the exit. But then between WSB and everyone on Twitter, I realized that there was a ton of money in the stock that simply wasn't rational. That there was a combination of people who either (1) had been convinced to an almost religious degree that the stock was going to rise forever, or (2) saw the entire event as a moral crusade against The Establishment.
There's always profit to be made when people are being emotional with their money.
Probably some combination of:
- The fanatics above
- People clinging to the hope of a "dead cat bounce" that can be exploited to recover some losses
What? No. No no no no no no no no no. Go home and buy an index fund.
Thanks for thanking the time to educate people in this thread, Gamechanger.
At the time of the analysis GS book value was twice its market cap.
gam·ble - to take risky action in the hope of a desired result.
It's not too far off. When you invest in something with time, money, etc. and hope to benefit from that investment, then it's a "gamble" that your efforts will be rewarded. Whether it's stock, a relationship, or whatever.
If you want to be sufficiently reductive, literally everything is a gamble because absolute certainty is impossible. Gambling generally refers to actions with short-term consequences which are mostly determined by chance.
Is diversifying your investments across a number of index funds a "risky action" though?
What the actual...1hour ago:
He's not just going down with the ship...he's pushing it.
Thanks, I thought I read that shorts expire about a week ago ...but then read people saying shorts don't expire.
That's what I figured with the selling without tanking the price...but there were definitely large drops.
Again, thanks for your post. But we did see the price tanking at very points...maybe they just had so much stock to get rid off the price going down was inevitable?
He's not just going down with the ship...he's pushing it.
Thanks, I thought I read that shorts expire about a week ago ...but then read people saying shorts don't expire.
That's what I figured with the selling without tanking the price...but there were definitely large drops.
Again, thanks for your post. But we did see the price tanking at very points...maybe they just had so much stock to get rid off the price going down was inevitable?
I'm not sure what's the endgame of DFV. Is he scared of selling since he's been doxxed and some crazy WSBer who lost everything would try to get at him?
Okay and book value is particularly important for brick and mortar businesses?