GameStop/Reddit vs. Big Financial

[smokingman]

Very few 401k will have any exposure to hedge funds.

How To Invest In Hedge Funds

With government restrictions and pricey buy-ins, hedge funds are all but inaccessible to most mere investing mortals. That may not be such a bad thing, though. Hedge funds are much riskier than most other investments. Here's everything you need to know about investing in hedge funds. What Is a

www.forbes.com

It is not impossible though.

SEC Allows 401(k) Plan as Qualified Investor

SEC Allows 401(k) Plan as Qualified Investor

www.seclaw.com

 

[Ingomike]

I saw a story yesterday that there is a bunch of police, public, municipal, and teacher retirement funds on the line...

Please don't believe all the crap coming out right now. The media is on the side of the hedge funds not the people, but this misdirection allows them to appear for the people while assisting the hedge funds.

 

[Shadow01]

I am worried... I know very little about stocks but I have $45k in various 401k and mutual funds that not in the market but are held with and tied into companies that are in the market and those funds lost HUGE (relative to income) in 2008... I don't like what I am seeing and seriously considering pulling out, tomorrow.

If one guy on Reddit can get a few thousand other little guys on Reddit to do this, just to bankrupt some sleezey 1%ers, and in response HUGE financial compaines that manage stocks shut down trading to give those guys a chance to bail... then I and thousands of other little guys are going to react by selling out of this mess... I hope we don't see a crash.

Even if we don't, the question needs to be asked; "was this planned?".

Is this any different than WS experts telling millions what they think will happen on the evening news? Their appearance on a network and spewing their opinions could be considered stock manipulation.

 

[ziggy]

Sorry to be blunt, but I do not believe anyone on here, Dan Bongino included, has any clue what it means to short a stock.
In simple terms, if you buy 100 GME, then your account shows +100 GME. Of course, you have to pay for it, ignoring the possibility of using margin debt.
If you short 100 GME, then your broker has to find someone who is willing to loan that stock to the brokerage house so they can deliver it to the buyer, and your account shows -100 GME. Suppose you short-sell 100 GME at $10.00 - You do not get the $1,000 dollars because that money has to secure the brokers obligation to "cover" the short position. If the stock falls to $5, then you can use $500 to buy another stock. However, if the stock goes to $20., then the brokerage house calls you up and says, "You have to put up more margin or we will close the position and you will owe us for the loss, that is $1000 plus an additional $1000.
If Big Hedge fund has shorted 10,000,000 shares, and the stock trades up to $400 per share, then the brokerage calls and says you have to put up $400 million dollars, by the way, that means today. People trying to cover their short position bid the stock higher and higher and the short's get squeezed. That is mostly what is happening with GME.

 

[jsharmon7]

How long until the stock market crashes? If you need me I’ll be in the “disaster preparedness” subforum.

 

[BroodXI]

My ask price didn't get tickled.... i feel unloved. But it does look like the Hedge funds just traded shorts today during the halt. there was no volume during the ladder attack. Just doubled down, read short interest doubled. Guess some people just hate to lose. WSB needs to go after Leon Cooperman's shorts next and burn them down. That guy's a douche

 

[BroodXI]

Sorry to be blunt, but I do not believe anyone on here, Dan Bongino included, has any clue what it means to short a stock.
In simple terms, if you buy 100 GME, then your account shows +100 GME. Of course, you have to pay for it, ignoring the possibility of using margin debt.
If you short 100 GME, then your broker has to find someone who is willing to loan that stock to the brokerage house so they can deliver it to the buyer, and your account shows -100 GME. Suppose you short-sell 100 GME at $10.00 - You do not get the $1,000 dollars because that money has to secure the brokers obligation to "cover" the short position. If the stock falls to $5, then you can use $500 to buy another stock. However, if the stock goes to $20., then the brokerage house calls you up and says, "You have to put up more margin or we will close the position and you will owe us for the loss, that is $1000 plus an additional $1000.
If Big Hedge fund has shorted 10,000,000 shares, and the stock trades up to $400 per share, then the brokerage calls and says you have to put up $400 million dollars, by the way, that means today. People trying to cover their short position bid the stock higher and higher and the short's get squeezed. That is mostly what is happening with GME.

This just hurts to read. Why would anyone short a stock that they had to buy without using margin?

Why you should never short-sell stocks

Famous investors do it, but the average investor has too much to lose, says Phil van Doorn.

www.marketwatch.com

 

[Ingomike]

I am worried... I know very little about stocks but I have $45k in various 401k and mutual funds that not in the market but are held with and tied into companies that are in the market and those funds lost HUGE (relative to income) in 2008... I don't like what I am seeing and seriously considering pulling out, tomorrow.

If one guy on Reddit can get a few thousand other little guys on Reddit to do this, just to bankrupt some sleezey 1%ers, and in response HUGE financial compaines that manage stocks shut down trading to give those guys a chance to bail... then I and thousands of other little guys are going to react by selling out of this mess... I hope we don't see a crash.

Even if we don't, the question needs to be asked; "was this planned?".

I am worried... I know very little about stocks but I have $45k in various 401k and mutual funds that not in the market but are held with and tied into companies that are in the market and those funds lost HUGE (relative to income) in 2008... I don't like what I am seeing and seriously considering pulling out, tomorrow.

If one guy on Reddit can get a few thousand other little guys on Reddit to do this, just to bankrupt some sleezey 1%ers, and in response HUGE financial compaines that manage stocks shut down trading to give those guys a chance to bail... then I and thousands of other little guys are going to react by selling out of this mess... I hope we don't see a crash.

Even if we don't, the question needs to be asked; "was this planned?".

The wording of your post makes it sound like you believe the people on Reddit did something wrong, as I read it. They did nothing wrong. They got wind the hedge funds were going to short some of these and bankrupt them for profit, and responded by putting the hedge funds in a trick bag by buying the stock the hedge funds needed, that will break the hedge funds, but unless there is improper entanglement, which there may be, the entire market should not be affected.

 

[BroodXI]

this guy called it last year to the date on the reddit. Even got downvoted for it. but this video is about 5 months old. He makes a very compelling case as to why he loves the stock. He is still holding.

https://i.redd.it/opzucppb15e61.png

Roaring Kitty

 

[phylodog]

 

[jsharmon7]

Given that this whole deal snowballed from a small group on Reddit, has anyone entertained the idea this could be a foreign attack on the US economy? They’ve been accused of interfering with elections via social media, is it impossible that foreign actors could have orchestrated getting the ball rolling on this situation?

 

[zippy23]

That is until your 401K moves to 200.5 because of the same type of manipulation.

I don't think this will tank the entire market. The fund managers may need to sell their big holdings in other companies causing a short term slide, and then I'll buy those swings, but they'll return in no time if that happens. The real reason my 401k will tank is everything is a bubble right now. But I moved my 401k a couple weeks ago into the safest option available, I think the market will tank again this year. Hope I'm wrong but we'll see

 

[BroodXI]

Given that this whole deal snowballed from a small group on Reddit, has anyone entertained the idea this could be a foreign attack on the US economy? They’ve been accused of interfering with elections via social media, is it impossible that foreign actors could have orchestrated getting the ball rolling on this situation?

thats some qanon **** right there. It's from wealth inequality. People are mortgaging their homes for this. hell, one kid paid off his students loan from his earning.

 

[Vigilant]

I don't think this will tank the entire market. The fund managers may need to sell their big holdings in other companies causing a short term slide, and then I'll buy those swings, but they'll return in no time if that happens. The real reason my 401k will tank is everything is a bubble right now. But I moved my 401k a couple weeks ago into the safest option available, I think the market will tank again this year. Hope I'm wrong but we'll see

Not this specific instance, but now that the consequences are known, they could do this anytime,any day, to near any stock.

 

[jsharmon7]

thats some qanon **** right there. It's from wealth inequality. People are mortgaging their homes for this. hell, one kid paid off his students loan from his earning.

It sounds like you’re on the GME train. I hope for your sake I’m wrong and the little guys all walk away with a big win.

 

[phylodog]

I don't know squat about money, investing or any kind of finance but reading through this thread makes me think I should be glad I signed mortgage refi papers today.

 

[Vigilant]

thats some qanon **** right there. It's from wealth inequality. People are mortgaging their homes for this. hell, one kid paid off his students loan from his earning.

Unless you mortgaged your home in the early hours of this, you’re probably going to get hosed.

 

[Ingomike]

Not this specific instance, but now that the consequences are known, they could do this anytime,any day, to near any stock.

I don't think they can unless the hedge funds are overdoing the shorts on a company likely on life support...

 

[BroodXI]

It sounds like you’re on the GME train. I hope for your sake I’m wrong and the little guys all walk away with a big win.

Yes, i have skin in the game, but it's actually the house's money at this point. recovered my seed money getting caught in a ladder attack. As in life, not everyone walks away unscathed, i hope people have sense about it. i believe the foolish ones are the ones who doubled down on shorts instead of getting out .

 

[nightgaunt]

Given that this whole deal snowballed from a small group on Reddit, has anyone entertained the idea this could be a foreign attack on the US economy? They’ve been accused of interfering with elections via social media, is it impossible that foreign actors could have orchestrated getting the ball rolling on this situation?

Not a small group. Over 5 mil on the Wall street Bets subreddit. I'll be moving off Robinhood when all this settles.