It was over shorted by nearly 150 percent. GME was unique because it was so incredibly over shorted. While some believe that these are distractions (the more people invest in AMC and BB, the less they'll invest in GME), they've been on Reddit's collective mind for a while. BlackBerry is leaning hard on privacy at a time when privacy is being questioned on almost every frontier. AMC was nearly driven to bankruptcy but received a cash infusion, and its problems are likely to be over after COVID. AMC and BB are other stocks that those on WSB appear to have a consensus about: They think they're undervalued. GME isn't the only one that's being promoted by r/WSB. Essentially, brokerages were able to fix the price, because they only allowed for selling - theoretically to help hedge fund managers. This is now being investigated, by such high-profile individuals as Alexandria Ocasio-Cortez and Ted Cruz. Many other brokerages restricted trading GME for high volatility. GME plunged to half its value before starting to recover again. At the height of GME hysteria, RobinHood decided to restrict trading, so investors could only sell GME and not buy it. However, the very same company that started the GME surge is the one that ultimately betrayed its own users. RobinHood: Steal from the Poor, Give to the Rich? Essentially, hedge fund managers were trying to drive GME into bankruptcy by selling over 100 percent of its available stock. People started investing in GME because they genuinely did "like the stock" they saw that it was undervalued because of the shorting. This was around when people noticed that GameStop was incredibly over-shorted. Investors became bearish on the stock, expecting these executives to turn the retailer around. Way back in the before times of "a couple of weeks ago," GameStop brought in a couple of executives from Chewy. Tune into r/WSB and you'll see everyone saying something very simple about GameStop: "We Like The Stock." This is about more than just defying SEC's collusion standards. This all crystallized with GME.īut again, this isn't anything that anyone else hasn't been doing for a long time, such as stock reports on the news. From r/WSB, it eventually gets into the mainstream media. When someone posts that a stock is "winning" for them, others will fall in line. While they aren't organized (and therefore aren't illegal per the SEC), they have significant visibility. Moreover, r/WSB takes advantage of a cyclical effect. Usually, the people on r/WSB are trading on news, which are entirely valid ways to trade. But the beauty and complexity of WSB is that they often aren't gambles. In other words, they place very large positions on things that are essentially gambles. Sometimes to the detriment of the rest of their life.Īnd sometimes they're horribly wrong. While not politically correct, it's their way of saying that they focus on one thing and only one thing. The denizens of WallStreetBets call themselves "autists." This isn't as denigrating as it sounds it's praise, to them. And that means that at-home, single-person traders (like Redditors) have the ability to place trades (really, bets) that can get them practically infinite income. The stock trading platform for "the little guys," the RobinHood app makes it easy for anyone to trade. When was the first time you heard about r/WallStreetBets or RobinHood? If you've been following financial disruption at all, it was about two years ago, when the "infinite leverage" glitch catapulted the Reddit sub and the app into fame.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |