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Post by Big Blue on Jan 28, 2021 22:40:30 GMT
So any views on this, as it's made the national news?
Large funds go short on a share; some upstarts get a "Robin Hood" movement going to drive the price up and cost the shorters a chunk of cash.
However.......
How many of these modern day Robin Hoods are really just pump-and-dump day traders jumping on what was supposed to be an anti Wall St idea? A fair few individuals will have made a load of cash on these massive rises and be laughing at the situation.
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Post by ChrisM on Jan 28, 2021 23:05:05 GMT
Sorry, I'd never heard of Game Stop before this evening
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Post by rodge on Jan 29, 2021 4:16:18 GMT
Been watching it for a few weeks here.
Kind of strange how it’s all happened, the weird thing is seeing how the politicians on both sides have agreed that Robinhood and the SEC are way out of line stopping the little guy from doing what the traders do all the time- decide when to buy and sell shares in certain companies.
It’s nuts, but they’ll end up fixing the situation by putting in regulations that stops people from investing their own money, or something equally as stupid.
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Post by Big Blue on Jan 29, 2021 8:49:31 GMT
Sorry, I'd never heard of Game Stop before this evening Neither had most but I bet you’ve heard of Blackberry who had the same treatment. It’s about the practice of pushing a stock price up to cause losses to large funds being seen as Robin Hood (weak personal investors v. big funds) being used as pump and dump by less scrupulous PIs and / or funds. |
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Post by PG on Jan 29, 2021 13:24:23 GMT
Lots of hedge funds have been pumping and dumping for years, using short selling to make huge returns, and got away with it. So if a group of "little people" get together to take them on, good on them. The whole issue of short selling is ethically dodgy in many ways anyway, so if you lose a shit load of money being caught out, you've only yourself to blame.
Although politicians are being seen to support the small traders, I am sure that the big money will be lobbying like crazy to find a way to stop this going on in future.
What I did read that concerned me was that if you hold shares in nominee accounts with brokers (as nearly all private investors do) some brokers will lend those shares out to aid others shorting.
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Post by Bob Sacamano v2.0 on Jan 29, 2021 13:25:56 GMT
700% increase in stock price in a week. That's a ride I could really have got onboard with.
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Post by johnc on Jan 29, 2021 14:49:49 GMT
I see the shorting of stocks as being little different from insider trading. It's the use of knowledge (in this case self generated) to make money at the cost of others (normally the small guy)
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Post by PetrolEd on Jan 29, 2021 15:43:33 GMT
I think its fantastic, yes there are plenty of people who will have made money but its a win the the little guy. I quite like it when a bunch of spivs catch a cold, I don't like the concept of betting on downturns. its more then a game.
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Post by franki68 on Jan 29, 2021 15:53:40 GMT
I love the concept of hedge funds getting fucked ,they are to my mind parasitic leeches who extract huge wealth whilst giving nothing back,they manipulate the markets to their whim and ruin people and companies.
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Post by Ben on Jan 29, 2021 16:29:44 GMT
I love the concept of hedge funds getting fucked ,they are to my mind parasitic leeches who extract huge wealth whilst giving nothing back,they manipulate the markets to their whim and ruin people and companies. +1 to this |
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Post by racingteatray on Jan 29, 2021 19:21:23 GMT
I really haven't concentrated on this story so difficult to comment, but in principle the notion of short-sellers getting a taste of their own medicine certainly raises a chuckle.
Question is though whether there is someone else equally unscrupulous behind this making out like a bandit because they know when to jump and the foot soldiers don't. I wouldn't bet against that being the case!
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Post by Bob Sacamano v2.0 on Jan 29, 2021 19:53:28 GMT
Unfortunately, I think a lot of not very well off people, many of whom borrowed heavily to get on this bandwagon late, will be left holding the baby when the Merry go round stops.
Apologies for the range of mixed metaphors there. No idea...
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Post by Stuntman on Jan 29, 2021 21:21:55 GMT
I buy precious metals (PMs), both physical and using Exchange Traded Commodity Funds (ETFs) and this is a hot topic on the PM forum I frequent. Some people think that the Robinhood group will do the same with silver.
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Post by Big Blue on Jan 30, 2021 9:03:24 GMT
Question is though whether there is someone else equally unscrupulous behind this making out like a bandit because they know when to jump and the foot soldiers don't. I wouldn't bet against that being the case! Yep. That’s my view as well. Speculative gains are one thing but using someone else’s manipulation to make them whilst hiding behind the white hat cowboys is like Tonto handing the Lone Ranger’s appointments diary to the Mohicans. |
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Post by garry on Jan 30, 2021 10:22:50 GMT
.
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Post by garry on Jan 30, 2021 10:23:09 GMT
Taking the story at face value, if it is a number of individuals who have given a hedge fund a black eye by going on a buying frenzy then their party Is going to be short lived as the stock value plummets and they’re left holding stock that will never again reach the price that they paid.
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Post by chipbutty on Feb 1, 2021 20:01:56 GMT
Agreed, someone, somewhere is going to be taking a real kicking at some point. Unless this was an action by hundreds of thousands of investors who bought a handful of shares each that they will never sell, then I would assume it’s Bob’s bandwagon jumpers who pushed the prices into the stratosphere and will get burned.
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Post by Stuntman on Feb 1, 2021 22:01:49 GMT
As ever - the early adopters will have the opportunity to cash out and crystallise a largge gain.
The later adopters (bandwagon jumpers?) are a lot more likely to get burned.
Some people won't care, as they are just making a point of principle.
Silver has indeed seen some action on Friday/Monday and is now at or near an 8-year high.
My ETF holdings are up by about 75% on the average price I paid.
I have bought these holdings over the last 2 years or so (first investment was Nov 2018 when the price was under £11 per ounce, it's now over £21 per ounce).
It won't exactly make my fortune (yet) but I may lock in some gains if the price rises a fair chunk further over the course of this week.
Realistically I suspect it'll remain at or near its current level for a good while.
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Post by Stuntman on Feb 2, 2021 20:14:31 GMT
Well the silver price got smashed back down today, so back to square one!
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Post by johnc on Feb 3, 2021 9:24:46 GMT
I am sitting on 600% to 1000% gains on llika, ITM power and Ceres Power and am getting a bit nervous. However I keep coming back to the people who invested early in Apple, Google, Microsoft etc and sold out early on for great gains which ended up being tiny in comparison to the gains they could have had if they hung in there for the long run. I might half down.
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Post by Stuntman on Feb 3, 2021 22:13:00 GMT
^^^ That wouldn't be a bad idea at all.
I'm sitting on a couple of 1000% gains, but I made these initial investments 20 years ago!
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Post by PG on Feb 4, 2021 11:51:00 GMT
I am sitting on 600% to 1000% gains on llika, ITM power and Ceres Power and am getting a bit nervous. However I keep coming back to the people who invested early in Apple, Google, Microsoft etc and sold out early on for great gains which ended up being tiny in comparison to the gains they could have had if they hung in there for the long run. I might half down. If I ever made a 100% I always halved down. Maybe silly and missing out on more, but then the rest was "free money" as it were. On 1000% I'd have halved down ages ago! |
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Post by johnc on Feb 4, 2021 13:37:30 GMT
I am sitting on 600% to 1000% gains on llika, ITM power and Ceres Power and am getting a bit nervous. However I keep coming back to the people who invested early in Apple, Google, Microsoft etc and sold out early on for great gains which ended up being tiny in comparison to the gains they could have had if they hung in there for the long run. I might half down. If I ever made a 100% I always halved down. Maybe silly and missing out on more, but then the rest was "free money" as it were. On 1000% I'd have halved down ages ago! They have just gone daft over the past 3 to 4 months and had I not been so busy I would have halved down a lot sooner too but they seemed to have so much momentum that I left them - tax return season then arrived and I have only come back to the planet this week. |
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Post by michael on Feb 4, 2021 14:09:34 GMT
They have just gone daft over the past 3 to 4 months and had I not been so busy I would have halved down a lot sooner too but they seemed to have so much momentum that I left them - tax return season then arrived and I have only come back to the planet this week. I had you in mind when I sent off to my accountant last year rather than the usually January submission. |
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