amateur traders beat Wall St. pros trading

99% of day traders lose money....unless you listen to the forums. Then 99% make money.

Shark Tanks Kevin O'Leary:
(about shorting)

“You now run a new risk: that these effective social media vigilantes are going to come after you and squeeze you as a short,” O’Leary said, a reference to the popular Reddit forum WallStreetBets. “That’s going to make a lot of hedge funds think a second time before they try and go short stocks, which I think is great.”

I agree.

.....................


a different but similar subreddit "Satoshi Street Bets" ganged up and pumped up the cryptocurrency "Dogecoin" and it soared over 800% before falling to gain of about 150% for the day

these gangs are so powerful - they apparently decided to pump it up randomly

its' market capitalization increased by more than $7 billion in 24 hours

Elon Musk is involved in this - cheering on the gangs on twitter and elsewhere

he hates short sellers because they caused him trouble in the past by shorting TSLA
he has previously been disciplined by the SEC for remarks he made about stocks





https://www.cnbc.com/2021/01/29/dogecoin-cryptocurrency-rises-over-400percent-after-reddit-group-talks-it-up.html

Quote: lilredrooster

.....................


a different but similar subreddit "Satoshi Street Bets" ganged up and pumped up the cryptocurrency "Dogecoin" and it soared over 800% before falling to gain of about 150% for the day

these gangs are so powerful - they apparently decided to pump it up randomly

its' market capitalization increased by more than $7 billion in 24 hours

Elon Musk is involved in this - cheering on the gangs on twitter and elsewhere

he hates short sellers because they caused him trouble in the past by shorting TSLA
he has previously been disciplined by the SEC for remarks he made about stocks





https://www.cnbc.com/2021/01/29/dogecoin-cryptocurrency-rises-over-400percent-after-reddit-group-talks-it-up.html

I'm sorry but most short sellers are #@@$$.

They get what they deserve

I have no problem with an individual who thinks a stock is going to go down deciding to make a short play.

Hedge funds who go all out and actually do extra things to make the stock go down - that I think could be reined in. That business of more stocks being shorted than actually exist was a surprise to a lot of people.

Quote: odiousgambit

I have no problem with an individual who thinks a stock is going to go down deciding to make a short play.

short sellers are often considered the dark side of the market - the short sellers are looked at as the bad guys
I'm not so sure that's accurate

without shorts sellers everything would be buy, buy, buy or sell only to take a profit or cut losses

it seems to me that without short sellers, the market looks even more like a Ponzi scheme than it already does

I think short sellers may serve a purpose in smacking down extremely overvalued stocks
that seems to me to make the market a more efficient estimate of true value




*

Much of this thread reads like a bunch of third graders discussing physics. i'd thought a few posts were intended to be humourous, but now I'm not so sure.

Quote: TDVegas

99% of day traders lose money....unless you listen to the forums. Then 99% make money.

Exactly. And pump and dump schemes are the most notorious for ripping off the uneducated day trader. When there is no value, you cannot create value by shouting really loud. Tulips. Beanie babies. Etc. Now that the short squeeze is mostly over, the only question left is who's going to be left holding their overpriced shares when the price becomes rational again?

EDIT: Before replying to this post read the next one as well

A business going public is trying to raise capital to help finance it's further success

People who buy those stocks are putting their money out to share that success

No company would sell short stocks. No company would offer stocks promoting their failure.

No investor wants the company they invested in to fail. No investor would loan out their shares to a short seller who is hoping to ruin the company.

Short sellers are borrowing shares for a fee from financial institutions that are using the shares held in their possession. Those are the investors shares being loaned out without their knowledge or even permission (BTW-MDawg did correctly state that if you put a large GTC on your order the shares cannot be borrowed. The financial institution could not settle a GTC if those shares were loaned out so they are prevented from loaning them)

So basically financial institutions are milking the cow and slaughtering it for beef. They are making a borrow fee while holding onto investors shares without them knowing about it.

Imagine how you would feel if you knew YOUR SHARES of a company you believe will make you money were being loaned out by your stock trader to someone who believes that your stock will fail and who actively works against your self-interest.

So what happens when the stock does phenomenal in. Quick time? Those who "borrowed" (not brought but borrowed. They don't own anything) have to give back the borrowed stock at cost.

If the cost went sky high and the borrower doesn't have the money to cover, hmmm? Who is on the hook? I mean, who loaned out these shares without asking?

That's right, the fiduciary company that loaned them out. Who's interest would it be for a company like Robinhood to say, no buying, only selling?

Come on, Robinhood didn't want to be on the hook for all the borrowed shares that short sellers were going to say they couldn't cover.

So they rigged it to protect their financial ass. And it worked. GameStop dropped over three hundred bucks in a few hours.

But it's so obvious they may not escape sec, government and investor scrutiny.

We will see.

Andrew Left and his company Citron may be names you are hearing about with this mess.

Let me explain the significance.

What Andrew Left claims is he helps the market by exposing companies that are going to fail and announces them through his "research company" Citron.

Citron has correctly predicted stocks that failed giving them credibility.

So when Citron says a stock will fail, that alone usually causes it to fail.

In essence, Citron didn't discover failing stocks so much as CAUSING THEM TO FAIL.

Oh BTW, forgot to mention that Citron owner Andrew Left ALWAYS takes a short position in the stock he is announcing will fail prior to his announcement.

Here is his pronouncement on GameStop the day before the Reddit community piled on. I guarantee many of those people were investors who got burned by Andrew Left on other stocks.

This is what happens when you profit off other people misery.