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stocker08

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This is a fascinating mid week story. I invest in relatively safe, long term stuff(mutual funds, index, oil companies, ATT) so this is all kind of a different world to me. My brother has been making a killing with all the "hot stocks" this last year and I considered jumping in, but I'm kind of a pussy with money so I figure I will just steer clear. Mo' Money Mo' problems! Bernie Madoff, The Big Short, and the crash in 2008 (right when I was graduating college) scared me away from stock market get rich quick dreams I ever had.
If you even have a little tolerance for risk....you can do very well in the OTC.
 

balds

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I went on Reddit for the first time. Reddit is awful. Other stocks being mentioned as targets are AMC and NAKD. NAKD was up 108% in pre-market, then went red, now up about 15%. GME was up another 25% (100 points), before going red, down 22%. NAKD is only about 1.50 a share, might buy 1000 in my IRA just for the hell of it. KOSS was 3.86 on Monday and was trading at 94 in the pre-market this morning. Wild times.

On Reddit/Wall St. Bets there are a lot of "Why do you want to get rich" posts. Buying a house for parents, paying off $90,000 in student loans, etc. I have a feeling this isn't going to end well.
 

saintpaulguy

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When I lived downtown, my neighbor was a day trader. Just like guys at Mystic, he'd only tell you about his wins, as if his life was nothing but wins. You could tell by his moods that not everyday was sunny.
 

fan of Ray Williams

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I went on Reddit for the first time. Reddit is awful. Other stocks being mentioned as targets are AMC and NAKD. NAKD was up 108% in pre-market, then went red, now up about 15%. GME was up another 25% (100 points), before going red, down 22%. NAKD is only about 1.50 a share, might buy 1000 in my IRA just for the hell of it. KOSS was 3.86 on Monday and was trading at 94 in the pre-market this morning. Wild times.

On Reddit/Wall St. Bets there are a lot of "Why do you want to get rich" posts. Buying a house for parents, paying off $90,000 in student loans, etc. I have a feeling this isn't going to end well.
Ha! And their choice of car is ALWAYS a lambo! Always.
 

Nax5

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I went on Reddit for the first time. Reddit is awful. Other stocks being mentioned as targets are AMC and NAKD. NAKD was up 108% in pre-market, then went red, now up about 15%. GME was up another 25% (100 points), before going red, down 22%. NAKD is only about 1.50 a share, might buy 1000 in my IRA just for the hell of it. KOSS was 3.86 on Monday and was trading at 94 in the pre-market this morning. Wild times.

On Reddit/Wall St. Bets there are a lot of "Why do you want to get rich" posts. Buying a house for parents, paying off $90,000 in student loans, etc. I have a feeling this isn't going to end well.
Yeah, if you didn't get in early, I wouldn't risk it. But the guy on that subreddit who predicted this whole episode has made 50 million dollars! Insane.
 

saintpaulguy

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Pyramid scheme more than justice for the little man.
 

stocker08

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Good for them for taking the hedge funds down a few pegs. But the aftermath is going to be really ugly for a lot of these people if they think they are going to ride this to riches. Somebody is going to end up on the peak of this reverse ponzi.
 

TruthSeeker

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Robinhood just barred users from buying GME and AMC
Media is writing bad stories about them. Brokerages are restricting trades of stocks. Wall Street is manipulating the market to protect fat cats.

There's massive fraud being committed by big money right now.

The rich get protected from losses, but they're allowed to prey on everyone else.
 

fan of Ray Williams

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Media is writing bad stories about them. Brokerages are restricting trades of stocks. Wall Street is manipulating the market to protect fat cats.

There's massive fraud being committed by big money right now.

The rich get protected from losses, but they're allowed to prey on everyone else.
Stock market is vicious.
 

stocker08

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Robinhood just barred users from buying GME and AMC
I mean....they already crushed the hedge funds shorting these stocks. At this point....it's a lot of people pumping money into already WAY overinflated stocks....thinking that it will forever go up? They are fucking up the trading platforms with this WSB stuff. Time for it to go away.
 

Section2

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Media is writing bad stories about them. Brokerages are restricting trades of stocks. Wall Street is manipulating the market to protect fat cats.

There's massive fraud being committed by big money right now.

The rich get protected from losses, but they're allowed to prey on everyone else.
Exactly. The solution is easy: stop protecting the rich from losses. But Liz Warren is going to use it as a way to increase control of markets. The Reddit folks will get wiped out, the little guy will get wiped out, feds get their hooks in, markets further broken.
 

Winnipegopher

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This is bad. It sure looks like the retail traders are getting screwed. I am worried we will see riots today/ tonight as it is all will be seen as unfair to the little guy.

I also think this is the start of a huge crash but I have been wating for one since COVID started (and largely missed the gains).
 

TruthSeeker

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Exactly. The solution is easy: stop protecting the rich from losses. But Liz Warren is going to use it as a way to increase control of markets. The Reddit folks will get wiped out, the little guy will get wiped out, feds get their hooks in, markets further broken.
Yep. We've also got a lot of big businesses who aren't profitable, and they're staying alive due to low interese rates. It hurts upstarts from breaking into markets by propping companies that should have failed.

We're making monopolies worse, big companies bigger, and stifling new businesses and entrepreneurs.
 

TruthSeeker

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This is bad. It sure looks like the retail traders are getting screwed. I am worried we will see riots today/ tonight as it is all will be seen as unfair to the little guy.

I also think this is the start of a huge crash but I have been wating for one since COVID started (and largely missed the gains).
We're seeing in real-time how the financial system is rigged. Socialism for the rich. Brutal capitalism for the working class.
 

Winnipegopher

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We're seeing in real-time how the financial system is rigged. Socialism for the rich. Brutal capitalism for the working class.
Agreed but we are also seeing the strength of the retail traders. It is back up to 280. Crash averted for now.
 

mnsportsgeek

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Too much volatility for my blood. I should have bought a couple shares earlier this week just to join in the fun though.

This is gonna end with a chunk of people making cash and everyone else holding the bag that didn't get out in time.
 

Section2

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Yep. We've also got a lot of big businesses who aren't profitable, and they're staying alive due to low interese rates. It hurts upstarts from breaking into markets by propping companies that should have failed.

We're making monopolies worse, big companies bigger, and stifling new businesses and entrepreneurs.
Yes!! The entire economy will crash once we pull the phoney supports. Many of the really rich will be wiped out, but it can happen quickly, and new opportunities will exist everywhere. The system is corrupt. Most everyone sees it, they just differ in what’s causing it, and what to do about it.
 

Spoofin

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When I lived downtown, my neighbor was a day trader. Just like guys at Mystic, he'd only tell you about his wins, as if his life was nothing but wins. You could tell by his moods that not everyday was sunny.
I knew a guy who loved to play the slots. He could pump $5K into that machine and if somewhere along the night he it a $2K winner he would strut around like he won $2K, brag about hitting $2K, buy dinner for others, tip huge, etc. like a real winner does. Was amazing to watch, really.
 

howeda7

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Too much volatility for my blood. I should have bought a couple shares earlier this week just to join in the fun though.

This is gonna end with a chunk of people making cash and everyone else holding the bag that didn't get out in time.
I bought a couple of shares of AMC at $13, mainly to see if Fidelity was going to let me. They did. So far down 22%, but bottomed out at $7.
 

Unregistered User

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Robinhood just barred users from buying GME and AMC
GME and AMC are back up on Robinhood.

Robinhood is paid a huge annual fee by Citadel for data. Citadel clears about 40% of all trades made (execution). Citadel is owned by Melvin Capital. Melvin Capital has a huge short position on GME.

Melvin Capital told Robinhood to allow sells of GME and AMC but no buys.

Class action lawsuits are in the works.

Melvin changed theirs minds and GMC and AMC are now tradable on Robinhood.

Crazy.
 

MplsGopher

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Media is writing bad stories about them. Brokerages are restricting trades of stocks. Wall Street is manipulating the market to protect fat cats.

There's massive fraud being committed by big money right now.

The rich get protected from losses, but they're allowed to prey on everyone else.
I assume you think it is a bad thing when the wealthy collude and use insider information.

Why is it OK for a bunch of people to collude, out in the open, via Reddit?

Not a gotcha. Just wondering your opinion.
 

balds

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I assume you think it is a bad thing when the wealthy collude and use insider information.

Why is it OK for a bunch of people to collude, out in the open, via Reddit?

Not a gotcha. Just wondering your opinion.
Trading on insider information is illegal, although it clearly happens frequently. The people on reddit are using public information, and in my opinion, no different than an investment club or subscription based investment/alert services/chat rooms, etc. I'm all for the big boys having the ability to short stocks. They know the rules of the game and what can/has happened. Shorting stocks is an important function of the market, perhaps now firms will think twice about relentlessly punishing companies they deem weak in order to make m(b)millions at the expense of the average shareholder. Hate that brokerages cut off/limited the ability to buy these stocks this morning.
 

chri1673

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GME and AMC are back up on Robinhood.

Robinhood is paid a huge annual fee by Citadel for data. Citadel clears about 40% of all trades made (execution). Citadel is owned by Melvin Capital. Melvin Capital has a huge short position on GME.

Melvin Capital told Robinhood to allow sells of GME and AMC but no buys.

Class action lawsuits are in the works.

Melvin changed theirs minds and GMC and AMC are now tradable on Robinhood.

Crazy.
Not tradable, only sellable. As of 5 seconds ago.

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MplsGopher

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Trading on insider information is illegal, although it clearly happens frequently. The people on reddit are using public information, and in my opinion, no different than an investment club or subscription based investment/alert services/chat rooms, etc. I'm all for the big boys having the ability to short stocks. They know the rules of the game and what can/has happened. Shorting stocks is an important function of the market, perhaps now firms will think twice about relentlessly punishing companies they deem weak in order to make m(b)millions at the expense of the average shareholder. Hate that brokerages cut off/limited the ability to buy these stocks this morning.
Some lawyers do agree with you:

Such outright calls on social media for investors to coordinate their behavior struck many observers as skirting the line of market manipulation. On Wednesday, the S.E.C. said in a statement it was “actively monitoring the ongoing market volatility.”

Lawyers say platforms like Wall Street Bets are incredibly difficult to police, and it is not clear that there have been any violations of securities law.

“If it’s simply garnering enthusiasm for people to go out and push the price up, I mean on its face, without something more, I don’t think that’s illegal,” said Andrew Calamari, a securities lawyer at Finn, Dixon & Herling, and the former director of the New York office of the S.E.C.
 
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