Yep which is one argument for the retail platforms blocking trades but dammed if you do, dammed if you dont.

BlinkyBill:

 

Batman:

Who knows. It depended on how much fire the redditers had left.

 

no it doesn’t. It depends on how the company performs in business. This whole saga is temporary and those who bought outside of a realistic valuation are going to lose money.

 

The same could be said about the housing market and what rentals are worth, which also affects house prices in general. FOMO and greed causes bubbles, and applies in asset classes like shares and property. UKs house prices for example dropped in December, it seems people in NZ think that house prices will only go up, but we had a drop in the early 90's, and there have been times in NZs recent history when it has been difficult to sell  a house, which can force people accept a lower price.

All comes down to what someone else is prepared to pay at the time, but at least shares are easier and quicker to sell than houses are.

I don't know how you can look at the average house price going up $500/day in Jan 21 and not see it's the mother of all bubbles thats been building for decades. 

mattwnz:

 

All comes down to what someone else is prepared to pay at the time, but at least shares are easier and quicker to sell than houses are.

 

Which is why their prices can move much, much faster . in both directions, GME went up by ~1500% in a week.. that makes house inflation look like a geriatric with a zimmer frame... 

wellygary:

 

mattwnz:

 

All comes down to what someone else is prepared to pay at the time, but at least shares are easier and quicker to sell than houses are.

 

 

Which is why their prices can move much, much faster . in both directions, GME went up by ~1500% in a week.. that makes house inflation look like a geriatric with a zimmer frame... 

 

Both of you are somewhat naive around the share market, I don’t mean that unkindly but have a think about the below comments, not mine, and I’ll be paraphrasing in simple terms.

- Elon Musk (was shorted unsuccessfully on Tesla, and wildly against shorting as a practice) endorsed the WSB action as activism, but noted that many many will lose a lot of money.

- Mark Cuban did an AMA. He noted that day trading is very hard work, investment requires a lot of investigation before, and you should invest to hold and grow.

- Warren Buffet has never shorted a stock, because of the risk of unquantifiable losses; whereas if you are long your max loss is known at buy time.

Back to me. The trading on the ups-and-downs of a share’s price, margin trading, does indeed depend on the price the market will offer and accept. But getting a reliable return on your investment depends on the performance of the business: profitability, and cost management. 

Very few margin traders, so-called day traders, make money unless they are singularly focused and active. Plenty of investors make money by investing in stable, well-managed companies that perform well. 

GME is an anomaly and there is no way to jump on now and make money. Over a relatively short timeframe the share price will come down, and down, and then stabilise. A fair but optimistic valuation for GME is $16, and that depends on better than expected YE results.

It’s up to anyone to invest their money how they want, but please don’t put your money into GME as an investment. If you want to contribute to the activism, cool, but that’s not an investment.

Don’t take investment advice from me.

Beccara:

 

Yep which is one argument for the retail platforms blocking trades but dammed if you do, dammed if you dont.

 

No it isn't, that creates a self-fulfilling prophecy. The prices are guaranteed to go down if the only people that can buy them are the ones with the incentive to force the price down. It certainly creates an argument for better investor education, and at the very least prominent warnings to ensure that if anyone does buy in, they do so in an informed fashion.

Beccara:

 

Yep which is one argument for the retail platforms blocking trades but dammed if you do, dammed if you dont.

 

Freudian slip?

Kyanar:

 

No it isn't, that creates a self-fulfilling prophecy. The prices are guaranteed to go down if the only people that can buy them are the ones with the incentive to force the price down. It certainly creates an argument for better investor education, and at the very least prominent warnings to ensure that if anyone does buy in, they do so in an informed fashion.

 

Retail platforms blocked trades, The exchange themselves blocked trades for a total of 4 hours over the past 7-10 days, It's worth noting that institutional investors are largely not shorters and weren't blocked from doing anything, the only people blocked from my understanding were retail/semi-pro traders trying to BUY not Sell (Altho I think RobinHood blocked sells for a very short period?). 

The blowback so far has been a lot of hot air, investor education is a bit of a laugh when alot of people can't even read their platforms T&C to know that non-regulator intervention is allowed and don't even know about exchange circuit breakers/halts, we're starting to see people making decent losses on $GME and it could have been a lot worse. Do you really think that people that signed up and on day 1 deposited $1/2/3k via CC, bought $GME @ $200/300/400 wouldn't be complaining to the media right now about why they lost 50-75-90% of their deposit? because they did years ago with Forex/Options/etc etc and we ended up with the FMA regulating who could operate to NZ citizens. Allowing retail traders to blow up accounts risks further regulation and/or risk management requirements.

I really was quite surprised to see Sharsies and Hatch running almost no investor questionnaire's prior to completely sign up, A lot of the decent larger retail brokers like IB run a decent trader evaluation and will contact you before making trades to verify trading history etc before letting you trade.

sbiddle:

 

The whole situation shows what has been happening to markets particularly the US for the last couple of years - in effect "influencers" are pushing stocks in the hope that people will all get sucked in to buying them, and when they start going up FOMO kicks in and people go crazy while the original "influencer" cashes out.

 

The markets these days are largely a casino. More traditional measures like P/E ratios and dividends are largely meaningless to these /wallstreetbets day traders.

 

You just described pump and dump but using the word "influencers"...

eracode:

 

It’s a game of ‘musical shares’ - when the music stops, many of those holding the shares lose their money. It’s like a Ponzi Scheme. The actual values of these companies are a minute fraction of the false valuations implied by the total market value of the inflated share prices.

 

Although the hedge funds have lost or will lose billions, the private investors who have bought into this lunacy stand to lose a lot more in aggregate. A massive price to pay just to see the hedge funds hurt.

 

GameStop stock plunge leaves newbie traders to reckon with heavy losses - The Washington Post

 

As GameStop’s stock plunged 60 percent Tuesday, the online horde that had raced to invest in the “meme stock” scrambled to reckon with the financial bloodshed, wavering between a desire to sell and settle for heavy losses or stick with their online peers who had admonished them to “hold the line.”

 

In interviews Tuesday with novice traders on r/WallStreetBets, the gleefully reckless Reddit forum that helped fuel the onslaught, several said they were holding out hope that the hyperinflated stock would turn around.

 

But others expressed deep turmoil, posting screenshots from their online banks and brokerages to the forum that, in some cases, showed hundreds of thousands of dollars vanishing in a matter of hours.

 

“Being a part of WallStreetBets, it’s like a religion you’re devoted to,” he said on a Tuesday phone call from his parents’ home, where, in his bedroom, he has hung up a printed-out meme image featuring Jesus Christ, the Virgin Mary and Tesla chief executive Elon Musk, with GameStop’s logo shining above them.

 

“There’s this enormous power driving WallStreetBets, this energy: ‘Hold the line. We aren’t giving in. We aren’t giving up. We are in for that ride to that moon,’ ” he said, reiterating several of the forum’s catchphrases. “That is the power that keeps everyone holding their shares.”

 

In other words, not much different from QAnon then?

freitasm:

 

In other words, not much different from QAnon then?

 

Except unlike QAnon's 100% delusional CT, the original "opportunity" of the short squeeze was credible - greed did get the better of hedge funds who got sprung and were subsequently severely punished, and that was at least partly coordinated / jumped on by the *"retards" on WSB.

* anagram for "trader" and not in context intended to be an ableist slur, even though it is.

GME price down to $55 towards the end of today’s trading - down 40% on yesterday’s close and nearly 90% on recent peak. The music hasn’t quite stopped but it’s doing a slow fade.

Original youtube clip of a meme that's been posted on WSB:

so at the end of the day, the big boys win, not just win but win big time

someone tell me how i can short shares? this is really good if another gamestop happens ... !

Options trading would be the "simplest" but it's quite complex to learn from scratch and you will most likely blow up your first couple of accounts, please dont knee jerk into this and blow $0000's