(01-31-2021, 03:22 PM)The Real Marty Wrote:

(01-31-2021, 03:11 PM)StroudCrowd1 Wrote: I don't think this will end the way you see it. The way hedge funds short stocks has changed forever. The battle is just beginning.

No, it hasn't changed one bit.  All that's happened is that, by bidding up the price of the stock, the Redditors have given the hedge funds an even juicier target.  I guarantee you they have just re-shorted it at a higher price, and when the now-inflated price collapses, as it inevitably will, the hedge funds will make even more money, and the Redditors, at least the ones who haven't sold already, will lose their shirt.

What will probably happen is that some hedge fund will go short for enough shares of Gamestop to cause the price to drop drastically and induce panic selling as all the little guys holding Gamestop try to get out at the same time.  

And then AOC and Liz Warren will call for hearings and regulations and higher taxes and whatever else they can think of, in an effort to "protect the little guy from those big bad Wall Street wolves."  When it was the little guy who got himself into the situation in the first place.  

If you guys who like to buy and sell stocks want to make some money, you should short that stock now.  Because as some point, probably soon, the price of that stock will reflect the value of that company.

This is a subject that you and I agree on totally.  From what I have seen on Reddit this group wants to "buy and hold" because they think the price is going to continue to go up.  The fundamentals of the company don't really matter.

I have never shorted a stock because I don't have the knowledge or experience doing so.  However, this is awful tempting.  With that being said when I step back and really think about it, it would pretty much be "gambling" on my part since shorting stocks is not a part of my investment strategy.  I'll instead continue to build on what I do own and add the dividends paid out quarterly to my growing nest egg.

I have said it before and I'll say it again.  Chasing a stock looking for "the big payday" is a fool's game.

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