Yes, the investors on Reddit conspired to target companies that have been extensively shorted, knowing those that are taking the hit will need to buy more stock (as it is going up) to hedge their losses. As such they actually created a big time demand coming from the ones that got screwed the most.

The people that came up with this are math/finance wizards so I personally think it's ignorant to call the Reddit group of investors amateurs and such.


Disagree.  The Reddit investors got in early.  The short investors came in later and drove the price up even further.  There will be a selloff but by that time, the Reddit investors already made a ton of $$.

It's a false and artificial value on a stock (or group of stocks).  A very few of the "math/financial wizards" might profit off of it, but in the long run many people are going to suffer a big loss.  They might be "math/financial wizards" but they are amateurs when it comes to investing.  This isn't investing it's gambling.  A large number of people are going to take a huge hit because of this.

Go ahead and buy up shares of penny stocks.  Take a home equity loan out on your home to put more money into it.  Fall into the trap of "easy money" while you "screw the wall street billionaires".  Let's see who wins in the long run.

This nonsense is just setting up for a huge crash.

---

There are 10 kinds of people in this world.  Those who understand binary and those who don't.

I sold off enough to cover my original buy in so everything else is just cake. If I lose it all at this point, it will suck, but it won’t hurt.

I would dump every bit of it quickly and take whatever profit you might have at this point.  They are talking about putting a freeze on trading some of these stocks for 30 days (something I don't agree with).

Also keep in mind that depending on how your trading account is set up you possibly will have to pay brokerage fees and/or capital gains tax.

When all is said and done somebody is going to lose an awful lot of money over this.

I wonder if this will cause there to be more regulation regarding trading stocks. I hope not too much more. One of the things I like about Robinhood is that it allows a lot more people including working/middle class people the opportunity to invest.  I do believe that people especially working people should have the opportunity to invest regardless of what their income is. It shouldn't just be for the rich and wealthy.  People can really make money in the stock market, especially if they invest responsibly. I am concerned this articial driving up of prices will cause there to be more regulation and it will backfire and hurt a lot of us "little" investors. Some of us invest honestly/responsibly and do things like research and actually buy and hold a lot of our stocks and let them grow for a bit before we sell them. I don't blame people for selling quickly to get big gains (and I would do it in the right situations), but I think in the long run what is happening now with stocks like Gamestop may not pan out and could hurt some people besides the hedge funds guys.

I remember when investing sites recommended Gamestop several weeks ago. It was very cheap then (under $15). I thought about buying some shares and adding to them but I didn't. One reason because they were having some bad publicity around this time. (I think due to Covid).

If I had bought shares I would have sold most of them this week. This stock's value along with some others people are running up is definitely inflated right now. I don,'t believe these stock prices.will hold. 



The people who will make money are people who thought these stocks would legitimately increase(like I could have done )and bought in at cheap prices. And are now selling them off.Or people who bought in when people started running them up artificially. It's a mistake for people to now start buying a bunch of these stocks at these way higher prices. If this happens and people hold too long they will lose money.

It goes further than that.

In all reality there was probably not very many people that thought that a business like Gamestop would be successful and have the price of the stock "legitimately" increase.  In all reality this company as well as many others were pretty much on their way out.

What drove the artificial run-up is the fact that many institutional investors were expecting the company to fold and go under (which it still will) so they shorted the stock.

I'll give a VERY basic example.  Say company XYZ's stock price is $20 per share.  The company is not doing well and is on the verge of folding.  If somebody shorts the stock for say 100 shares it means that they are "borrowing" the stock valued at $20 per share thinking that it's going to go down so they essentially "borrowed" $2000.00 ($20 x 100).  When the price drops to say $10 per share they "pay their debt" by buying 100 shares, but since the price dropped from $20 to $10 they only pay $1000 and made the other $1000 from shorting it.  That's a VERY basic example of how shorting a stock works.

Cue the day traders/gamblers on Reddit, Facebook and other platforms.  They decide to buy the stock which drives the price up.  The stock goes to say $30 per share so the institutions that shorted it have to "pay their debt" and end up losing $1000 since "paying their debt" means that they have to buy their 100 shares at market price ($30 per share).  This in turn creates more "demand" for the stock so the price continues to go up and the cycle continues.

The problem is that as the stock price goes up, people "buy in" and drive the stock price even higher.  However, the business model of the company is such that it loses money and is going to fold.  When that happens, people that own the stock will find out that it's basically worthless.

Again, this is a VERY BASIC explanation of what is happening.  If it's just one or two stocks it's not a big deal.  When it starts happening to groups of stocks it is a bigger deal.

This is something. I have seen people on another site I visit sometimes saying they are going to go and buy some more Gamestop shares. That stock is now over $300. Unless many of these people have large amounts of disposable income/savings lying around, they don't have the funds to buy a bunch of this stock. And I think it's a mistake to buy/try and buy a bunch of it up.

I actually bought some shares of a penny stock from a company called Genius Brand last year, where people drove the price up and then it ended up falling a bit, losing people money. Including me. Some people were predicting it was going to be the next Netflix but for children. They have a cartoon channel which has several children's programs. Well, people were buying up this stock because they thought it was going to do well and it drove the price up. I bought some more shares as the price was going up. At first some people made some money and I made a little bit, but it wasn't sustainable and the price of the stock fell very quickly. (I want to say within a few days). 

And it's been a very low price ever since. I lost some money on that, thankfully nothing astronomical. Maybe a couple of hundred dollars at the most, it wasn't too much, thank goodness. But that was a stock that ended up falling significantly and people were investing in that stock with good intentions. If that could happen there, I do think some of these other stocks that people are driving the price up now (and still buying into) could have bigger crashes.

---

It's not really that basic of an example, it's pretty much exactly what's happening but in much larger volumes and with large hedge funds being the ones shorting the stock.

I kind of think it's hilarious, a bunch of nerds on reddit are costing a bunch of billionaires on wall street a lot of money.

It is kind of funny on the surface, but don't expect it to last long.  Trust me, it's not just a "bunch of billionaires on wall street" losing a lot of money.  Many don't realize that their 401k's probably have a stake in some of the hedge funds that took a huge loss.

Research the dot-com bubble in the late 1990's.

The other thing to look at is the amount of "borrowed" money in the stock market right now.

I agree, but it still makes me chuckle.

My 401k, IRA, and brokerage account took a beating today, but I mostly just invest in index funds/ETFs/mutual funds and a few select stocks here and there, the big names you would suspect.  But, I'm also only 33, so not a whole lot to worry about over time, so to me it's still kind of funny.

---

That’s a good explanation.  I understand what you’re saying except one thing.  Are these Reddit people artificially inflating it because it’s been shorted? Make money and screw some investor over? Is this something that’s mutually exclusive or no? one doesn’t need to happen for the other to happen, right?

That was a great explanation, comparable to the one I heard on CNBC today.

Yes, the investors on Reddit conspired to target companies that have been extensively shorted, knowing those that are taking the hit will need to buy more stock (as it is going up) to hedge their losses. As such they actually created a big time demand coming from the ones that got screwed the most.

The people that came up with this are math/finance wizards so I personally think it's ignorant to call the Reddit group of investors amateurs and such.

---

Just my opinion and guess.  I think that the Reddit people (and others) started playing a very dangerous game that they (as well as many others) will lose.  Sure some of them might make some money in all of this, but what is happening is heading towards another big crash.

Disagree.  The Reddit investors got in early.  The short investors came in later and drove the price up even further.  There will be a selloff but by that time, the Reddit investors already made a ton of $$.

I agree, but I'm sure a lot of non math/finance wizards who catch wind of this are going to go and try to play and lose their butts!

---

I would dump every bit of it quickly and take whatever profit you might have at this point.  They are talking about putting a freeze on trading some of these stocks for 30 days (something I don't agree with).

Also keep in mind that depending on how your trading account is set up you possibly will have to pay brokerage fees and/or capital gains tax.

When all is said and done somebody is going to lose an awful lot of money over this.

I wonder if this will cause there to be more regulation regarding trading stocks. I hope not too much more. One of the things I like about Robinhood is that it allows a lot more people including working/middle class people the opportunity to invest.  I do believe that people especially working people should have the opportunity to invest regardless of what their income is. It shouldn't just be for the rich and wealthy.  People can really make money in the stock market, especially if they invest responsibly. I am concerned this articial driving up of prices will cause there to be more regulation and it will backfire and hurt a lot of us "little" investors. Some of us invest honestly/responsibly and do things like research and actually buy and hold a lot of our stocks and let them grow for a bit before we sell them. I don't blame people for selling quickly to get big gains (and I would do it in the right situations), but I think in the long run what is happening now with stocks like Gamestop may not pan out and could hurt some people besides the hedge funds guys.

It goes further than that.

In all reality there was probably not very many people that thought that a business like Gamestop would be successful and have the price of the stock "legitimately" increase.  In all reality this company as well as many others were pretty much on their way out.

What drove the artificial run-up is the fact that many institutional investors were expecting the company to fold and go under (which it still will) so they shorted the stock.

I'll give a VERY basic example.  Say company XYZ's stock price is $20 per share.  The company is not doing well and is on the verge of folding.  If somebody shorts the stock for say 100 shares it means that they are "borrowing" the stock valued at $20 per share thinking that it's going to go down so they essentially "borrowed" $2000.00 ($20 x 100).  When the price drops to say $10 per share they "pay their debt" by buying 100 shares, but since the price dropped from $20 to $10 they only pay $1000 and made the other $1000 from shorting it.  That's a VERY basic example of how shorting a stock works.

Cue the day traders/gamblers on Reddit, Facebook and other platforms.  They decide to buy the stock which drives the price up.  The stock goes to say $30 per share so the institutions that shorted it have to "pay their debt" and end up losing $1000 since "paying their debt" means that they have to buy their 100 shares at market price ($30 per share).  This in turn creates more "demand" for the stock so the price continues to go up and the cycle continues.

The problem is that as the stock price goes up, people "buy in" and drive the stock price even higher.  However, the business model of the company is such that it loses money and is going to fold.  When that happens, people that own the stock will find out that it's basically worthless.

Again, this is a VERY BASIC explanation of what is happening.  If it's just one or two stocks it's not a big deal.  When it starts happening to groups of stocks it is a bigger deal.

This is something. I have seen people on another site I visit sometimes saying they are going to go and buy some more Gamestop shares. That stock is now over $300. Unless many of these people have large amounts of disposable income/savings lying around, they don't have the funds to buy a bunch of this stock. And I think it's a mistake to buy/try and buy a bunch of it up.

I actually bought some shares of a penny stock from a company called Genius Brand last year, where people drove the price up and then it ended up falling a bit, losing people money. Including me. Some people were predicting it was going to be the next Netflix but for children. They have a cartoon channel which has several children's programs. Well, people were buying up this stock because they thought it was going to do well and it drove the price up. I bought some more shares as the price was going up. At first some people made some money and I made a little bit, but it wasn't sustainable and the price of the stock fell very quickly. (I want to say within a few days). 

And it's been a very low price ever since. I lost some money on that, thankfully nothing astronomical. Maybe a couple of hundred dollars at the most, it wasn't too much, thank goodness. But that was a stock that ended up falling significantly and people were investing in that stock with good intentions. If that could happen there, I do think some of these other stocks that people are driving the price up now (and still buying into) could have bigger crashes.

At the end of the day, if you're going to play this gambling game, and it is gambling, just don't risk what you're not comfortable losing.  If i'm taking a risk on an investment, i.e. a gamble, I just assume I'm not getting that money back and that's the amount I'm comfortable using.

I don't do that often, most of the time I am buying what I believe are long term investments, so I'm typically spending money that I don't believe I will need for a long time, but eventually expect to get back.  That's also not always guaranteed, but over time, there are strategies that tend to work and make you solid/moderate returns as you let them sit for 10-20 years.

---

Suits trying to shut down WSB. Poop about to hit the fan. AMC and NOK are going to absolutely explode tomorrow. Censorship has awaken the Kracken.

---

I wonder if this will cause there to be more regulation regarding trading stocks. I hope not too much more. One of the things I like about Robinhood is that it allows a lot more people including working/middle class people the opportunity to invest.  I do believe that people especially working people should have the opportunity to invest regardless of what their income is. It shouldn't just be for the rich and wealthy.  People can really make money in the stock market, especially if they invest responsibly. I am concerned this articial driving up of prices will cause there to be more regulation and it will backfire and hurt a lot of us "little" investors. Some of us invest honestly/responsibly and do things like research and actually buy and hold a lot of our stocks and let them grow for a bit before we sell them. I don't blame people for selling quickly to get big gains (and I would do it in the right situations), but I think in the long run what is happening now with stocks like Gamestop may not pan out and could hurt some people besides the hedge funds guys.



This is something. I have seen people on another site I visit sometimes saying they are going to go and buy some more Gamestop shares. That stock is now over $300. Unless many of these people have large amounts of disposable income/savings lying around, they don't have the funds to buy a bunch of this stock. And I think it's a mistake to buy/try and buy a bunch of it up.

I actually bought some shares of a penny stock from a company called Genius Brand last year, where people drove the price up and then it ended up falling a bit, losing people money. Including me. Some people were predicting it was going to be the next Netflix but for children. They have a cartoon channel which has several children's programs. Well, people were buying up this stock because they thought it was going to do well and it drove the price up. I bought some more shares as the price was going up. At first some people made some money and I made a little bit, but it wasn't sustainable and the price of the stock fell very quickly. (I want to say within a few days). 

And it's been a very low price ever since. I lost some money on that, thankfully nothing astronomical. Maybe a couple of hundred dollars at the most, it wasn't too much, thank goodness. But that was a stock that ended up falling significantly and people were investing in that stock with good intentions. If that could happen there, I do think some of these other stocks that people are driving the price up now (and still buying into) could have bigger crashes.

At the end of the day, if you're going to play this gambling game, and it is gambling, just don't risk what you're not comfortable losing.  If i'm taking a risk on an investment, i.e. a gamble, I just assume I'm not getting that money back and that's the amount I'm comfortable using.

I don't do that often, most of the time I am buying what I believe are long term investments, so I'm typically spending money that I don't believe I will need for a long time, but eventually expect to get back.  That's also not always guaranteed, but over time, there are strategies that tend to work and make you solid/moderate returns as you let them sit for 10-20 years.

Oh yeah, I definitely not try to invest more in a stock than I can afford. I have said "too rich for my blood" several times when it comes to investing in various stocks. I look up what the upsides, projections for them are for a certain amount of time (like over the course of a year) And at some point if I think it's better off to try buying/loading up on that stock, I definitely stop. I usually invest in a lot of penny/cheaper stocks, but I am going to start investing in more longer term options as well.

Suits trying to shut down WSB. Poop about to hit the fan. AMC and NOK are going to absolutely explode tomorrow. Censorship has awaken the Kracken.

NOK and AMC were two stocks that I have seen multiple sights suggest investing in. I haven't invested in either one of them either, because I was a bit skeptical about how well they would do. But maybe they will have big days tomorrow if people keep driving/drive up their price.

I actually saw someone someone post a post, that looked like it was from wallstreetbets. (Though, it looks like they may have been banned from reddit). The post mentioned Genius is next. I sold most of my Genius stock once the price fell down quite a bit last year. But I have a very small amount of shares left. If they really do drive the price of Genius up, maybe they will make it rain with the 8 shares I have left lol.   I decided to keep a very small amount of shares in case the stock ever rebounded. My average cost of shares is like $3.88. I did just see it went up like a dollar today. If they do try and drive it up, I wonder how far they will drive it up. I also saw people post what looked like quotes from Nasdaq CEO, that they will possibly halt trading if a stock looks like it's being driven up artificially. And that they will possibly monitoring social media chatter to do that. 

So maybe that will halt what people may try and do with stocks like Nokia and Genius tomorrow. I am interested in seeing what happens. I am scheduled to work a little later tomorrow, so I will be checking to see what possibly happens with Genius tomorrow. I'm not saying I will help people run it up, but if they run it up, I will cash out the few shares I have if there is a big profit to be made lol.

---

At the end of the day, if you're going to play this gambling game, and it is gambling, just don't risk what you're not comfortable losing.  If i'm taking a risk on an investment, i.e. a gamble, I just assume I'm not getting that money back and that's the amount I'm comfortable using.

I don't do that often, most of the time I am buying what I believe are long term investments, so I'm typically spending money that I don't believe I will need for a long time, but eventually expect to get back.  That's also not always guaranteed, but over time, there are strategies that tend to work and make you solid/moderate returns as you let them sit for 10-20 years.

Oh yeah, I definitely not try to invest more in a stock than I can afford. I have said "too rich for my blood" several times when it comes to investing in various stocks. I look up what the upsides, projections for them are for a certain amount of time (like over the course of a year) And at some point if I think it's better off to try buying/loading up on that stock, I definitely stop. I usually invest in a lot of penny/cheaper stocks, but I am going to start investing in more longer term options as well.

Suits trying to shut down WSB. Poop about to hit the fan. AMC and NOK are going to absolutely explode tomorrow. Censorship has awaken the Kracken.

NOK and AMC were two stocks that I have seen multiple sights suggest investing in. I haven't invested in either one of them either, because I was a bit skeptical about how well they would do. But maybe they will have big days tomorrow if people keep driving/drive up their price.

I actually saw someone someone post a post, that looked like it was from wallstreetbets. (Though, it looks like they may have been banned from reddit). The post mentioned Genius is next. I sold most of my Genius stock once the price fell down quite a bit last year. But I have a very small amount of shares left. If they really do drive the price of Genius up, maybe they will make it rain with the 8 shares I have left lol.   I decided to keep a small amount of shares in case the stock ever rebounded. My average cost of shares is like $3.88. I did just see it went up like a dollar today. If they do try and drive it up, I wonder how far they will drive it up. I also saw people post what looked like quotes from Nasdaq CEO, that they will possibly halt trading if a stock looks like it's being driven up artificially. And that they will possibly monitoring social media chatter to do that. 

So maybe that will halt what people may try and do with stocks like Nokia and Genius tomorrow. I am interested in seeing what happens. I am scheduled to work a little later tomorrow, so I will be checking to see what possibly happens with Genius tomorrow. I'm not saying I will help people run it up, but if they run it up, I will cash out the few shares I have if there is a big profit to be made lol.

Looks like the suits are trying to drive the after hours price of NOK and AMC down to scare people off. I think it will have the opposite reaction. Tomorrow will be fun. This is fun. Is it sustainable? No. It's no different than going to Vegas. Just bring what you are willing to flush down the toilet and hope you might win.

I mean, if you don't get greedy, there is some kid out there who will take the stock off your hands after a modest profit.

---

It was Trump:

CNN's Chris Cillizza panned for claiming 'Trumpism' is behind GameStop stock surge | Fox News

---

It was Trump:

CNN's Chris Cillizza panned for claiming 'Trumpism' is behind GameStop stock surge | Fox News

This whole thing has bigger repercussions.  The attempted silencing of WSB will bring awareness to a larger audience to big tech censorship that is going on, but before today mainly restricted to the political atmosphere. 

I expect Trump to capitalize on this when he decides to re-enter our daily lives, and it is going to be glorious.

---

Some solid insider trading in Tesla by Pelosi. Nothing to see here folks. Our elected officials are rotten to the core.

---

I can already see the title to the 2021 sequel novelization of 2020:

2021: Reddit Kills the Stock Market

FWIW, I've shifted a bunch of money in my 401k around over the last few days and, um, made money.

---

I can already see the title to the 2021 sequel novelization of 2020:

2021: Reddit Kills the Stock Market

FWIW, I've shifted a bunch of money in my 401k around over the last few days and, um, made money.

It would be fitting, huh? Pochanatus Warren is already calling for Biden regulations to protect her hedge fund buddies who are getting hosed. Biden isn't even 2 weeks into his term and we are already talking about the death of the stock market. That's your boy.

---

It was Trump:

CNN's Chris Cillizza panned for claiming 'Trumpism' is behind GameStop stock surge | Fox News

This is absurd.  First of all Trump protected the elites throughout his term.  Additionally, his most loyal supporters (who haven't yet been arrested for rioting) are too busy complaining about the election to actually take time to figure out how to manipulate the market in this fashion.

---

It was Trump:

CNN's Chris Cillizza panned for claiming 'Trumpism' is behind GameStop stock surge | Fox News

This is absurd.  First of all Trump protected the elites throughout his term.  Additionally, his most loyal supporters (who haven't yet been arrested for rioting) are too busy complaining about the election to actually take time to figure out how to manipulate the market in this fashion.

I know, right?

---

It was Trump:

CNN's Chris Cillizza panned for claiming 'Trumpism' is behind GameStop stock surge | Fox News

This is absurd.  First of all Trump protected the elites throughout his term.  Additionally, his most loyal supporters (who haven't yet been arrested for rioting) are too busy complaining about the election to actually take time to figure out how to manipulate the market in this fashion.

Dear SEC. We do not know this guy, and have no idea what he means by manipulating the market.

Sincerely,

Jaguar message board

---

So, dumb question...

When the hedge fund closes their short positions and are out of the picture, what is the benefit of still buying the stock at that point? Seems like the last ones holding the shares would be wiped out when the company files bankruptcy, right?

---

Crap ---- I sold AAL and invested in LUV back in December

American Airlines is the next AMC --- here it comes.  The reason I didn't reference Gamestop is because GME is way beyond the AMC and Blackberry market boom.

---

So, dumb question...

When the hedge fund closes their short positions and are out of the picture, what is the benefit of still buying the stock at that point? Seems like the last ones holding the shares would be wiped out when the company files bankruptcy, right?

I think that is correct.  Someone is going to be left holding the bag, and those people will lose a whole lot of money.

---

So, dumb question...

When the hedge fund closes their short positions and are out of the picture, what is the benefit of still buying the stock at that point? Seems like the last ones holding the shares would be wiped out when the company files bankruptcy, right?

I think that is correct.  Someone is going to be left holding the bag, and those people will lose a whole lot of money.

It was my belief that the smart ones would cash out before the hedge funds could react.

---

A lot of Robinhood investors right now are upset because it looks like they took stocks like Gamestop off the app/website. And left a message for those who own the stock that they can only close out their positions on it and not buy anymore. People are saying they will be done with Robinhood after this. Robinhood has already been getting flack prior to this move, because people including politicians have likened it to gaming and have said it's not good for young, inexperienced investors. I do like the website and am glad I signed up on it back in March, but this current move does not look good for them.

---