Unless he’s a millionaire (which at 23, I doubt), why would he have any money in GME, let alone 10s of thousands? Or does he work there and they are stock options?

yolo trade based on the year old reddit post, they were a 4 dollar share less than 6 months ago

£10,000 or 2500 shares was worth £867k at close yesterday

Gamblers never tell you about their losses. £10k into Gamestop based on a Reddit thread either means you’re too wealthy to care or reckless.

But fundamentally, if the company is sound and correctly valued, the short will either fail or be pretty inefective

but fundamentally Hedge funds should be allowed to say; create fake outages in a states power infrastructure to bump an energy company’s stocks, or drive a country’s (see Puerto Rico) debt obligations and collapse its govt; those are cool, right?

£10,000 or 2500 shares was worth £867k at close yesterday

Yup that’s exactly what’s happened. He originally invested 10k from savings in various things and did quite well. Then he came across the GME thing very early on and took a punt. Now (assuming he’s got out) he’s setup for life. Lucky boy.

How do you have £10k savings at 23?

How do you have £10k savings at 23?

Inheritance, normally. Or working hard, living rent-free at home, and no C&H.

How do you have £10k savings at 23?

Trust fund (yeah yeah I know!), not all young people are skint. He had a lot more than that but only used 10k to have a play on the stock market apparently.

Or, living at home and much C&H, but from a supplier point of view.

How do you have £10k savings at 23?

Inheritance? Previous dabbling in the market?

I had a bit more than that at that age. When I was 24 I stuck over 40k of my savings into investments thanks to a few rather good years and not paying rent (lived in a shed in my folks garden for six years).
Unfortunately I wasn’t aware of GameStop a few months back.

Just took a look at GME on T212:

In the interests of mitigating risk for our clients, we have temporarily placed GameStop in reduce-only mode as highly unusual volumes have led to an unprecedented market environment. New positions cannot be opened, existing ones can be reduced or closed.

Beautiful eh?

Should the platforms be allowed to do that, effectively try and force people to sell?
That’s got to be rigging the game?

The subreddit and online hype are more like a kind of flashmob in my view. It’s a kind of organised chaos.

Basically noise in the system, they can affect an uninteresting stock for a short while, but the markets as a whole will barely notice.

Inheritance, normally. Or working hard, living rent-free at home, and no C&H.

That wasn’t my point – it’s a very unusual investment stratagy (foolish) to have any more than 1 or 2% in a individual company as it’s pretty risky. So unless you had millions in a tracker I wouldn’t expect anyone to own that many shares in one company especially one which isn’t going anywhere.

Exceptions being family business, share options etc.

However, in this case, it might just pay off….

Should the platforms be allowed to do that, effectively try and force people to sell?

Their platform, their rules. Fundamentally this is just people ‘having a laugh’ so I don’t have a problem with the platform saying ‘f*** off and play somewhere else’.

Beautiful eh?

Should the platforms be allowed to do that, effectively try and force people to sell?
That’s got to be rigging the game?

Robinhood in US also has done this. No market manipulation to see here…..curious this happens after Melvin got 2.7 billion from Citadel.

I suspect a savvy 23yr old would be more than willing to take a yolo punt based on a reddit forum.

Yolo being the operative term here.

However, in this case, it might just pay off….

Don’t know the full details but he banked the profit from previous (more sensible) investment and used some of it to take a punt on GME and others. He only gambled what he could already afford to lose, and it paid off big time. I’m quite jealous!

Without trying to sound like a killjoy, if you’ve earned that £10k on minimum wage you’re less likely to ‘punt it’ like this. This kind of ‘trading’ is proven to fail in the long term. It’s a middle-class equivalent of going down the dogs.

That wasn’t my point – it’s a very unusual investment stratagy (foolish) to have any more than 1 or 2% in a individual company as it’s pretty risky.

if he’s followed the reddit thread though, this isn’t an investment strategy? It’s acting on a tip… still risky of course!

Let’s see what the overnight market manipulation, or counter-manipulation, or counter-counter etc achieves.

Marketwatch has crashed for me 🙂

Their platform, their rules. Fundamentally this is just people ‘having a laugh’ so I don’t have a problem with the platform saying ‘f*** off and play somewhere else’.

Fair enough, just seems like a rather obvious double standard, they didn’t squash trading of Tesla when price started running up and up (and seems to be continuing).
It does feel like they’re happy for people to jump on a hype train, so long as it doesn’t upset the big funds/institutions…

Casual/amateur traders can “play” in a disorganised way with their pocket change and that’s fine,
but if they mess with the “Pro’s” cheeky bets that won’t stand…

just seems like a rather obvious double standard

It’s blatant market manipulation, and proves the whole system is rigged, which for many on the GME bandwagon is exactly the point. If the big funds and traders can manipulate the market by colluding wiith each other why not small investors?

Fair enough, just seems like a rather obvious double standard, they didn’t squash trading of Tesla when price started running up and up (and seems to be continuing).

They are quite different situations. People are allowed to be overly optimistic about companies (eg Tesla) and overly pessimistic about others (most of the FTSE is undervalued right now). GME is market manipulation for no other reason than they can – which is sort of taking the piss and not something the plarforms want to encourage. It certainly isn’t productive.

Casual/amateur traders can “play” in a disorganised way with their pocket change and that’s fine,
but if they mess with the “Pro’s” cheeky bets that won’t stand…

Care to take a “cheeky bet” which of those two groups actually provides anything but chump change for those platforms and their owners?

The hand that feeds is being bitten, no great surprises the industry isn’t keen on that.

It’s acting on a tip… still risky of course!

I act on tips all the time, but each tip only gets a small % of my pension and I only follow a tip if it makes sense to me ie the company / fund should do better in the future (IMO). I fully expect some tips to be duff and loose money – although currently my worst performing asset is a FTSE100 tracker, which I keep meaning to ditch as I don’t see sentiment changing.

GME is market manipulation for no other reason than they can – which is sort of taking the piss and not something the plarforms want to encourage. It certainly isn’t productive.

but its productive for hedge funds to short a business into oblivion?

Chickens coming home to roost?

Many people are confused about what's happening in the stock market, specifically with #GME vs the Hedge Funds.

This letter, from /WallStreetBets, is the best way to explain it. This isn't just a bunch of random retail investors ganging up.

It's a reckoning. pic.twitter.com/vgWBcgKurG

— Muhammad Lila (@MuhammadLila) January 28, 2021

We might have to accept some ambiguity here about what is and isn’t collusion, but the kind of market instability that it can create is bad for everyone ultimately and the economy (we all own stocks through our pensions). Anyway, they put the stock in special measures ‘cos of some suspicious trades. It’s not been declared collusion yet.

I only follow a tip if it makes sense to me ie the company / fund should do better in the future (IMO)

probably why you didn’t clear £800k profit this week then 😃

They are quite different situations. People are allowed to be overly optimistic about companies (eg Tesla) and overly pessimistic about others (most of the FTSE is undervalued right now). GME is market manipulation for no other reason than they can – which is sort of taking the piss and not something the plarforms want to encourage. It certainly isn’t productive.

Allowing only the sell of GME shares on their platform (thus the price only going one way) seems more of market manipulation to me.

If the big funds and traders can manipulate the market by colluding wiith each other why not small investors?

I belive it’s because it can’t be proven (for what it’s worth I’m sure they do) whereas the reddit gang can.

It’s shit and it stinks.

Nah it’s just the ugly self-righteousness of Reddit-bros.

yikes – on eToro it updated to $19.90 but then the site bombed, a page reload and it was back at $350 (I may need a new pair of trousers…).

but its productive for hedge funds to short a business into oblivion?

Yes, shorting only works if a company is genuinely over valued, so just speeds up the eventual discovery / correction. Companies (normally) only dissapear into oblivion if they are commiting fraud ie frigging their results.

I bottled at $430 and closed out all but $500 (I was $1250 in at one point). It’s $475 now!

I bet the shares in trading platforms are booming.

I bet the shares in trading platforms are booming.

T212 has suspended new signups due to ‘unprecendented demand’, or rather ‘no you’re not jumpiing on this bandwagon, because it’s upsetting our paymasters’.

HL share price is down 5% today, so no, not booming (cba to check other trading co’s)
But it’s January, when trading is usually in a bit of a depression. Which means bargain hunting in February 🙂

I bottled at $430 and closed out all

Not a bad option to take, I wonder if the selling infrastructure will work properly once the sell-off starts in earnest?

I wonder if the selling infrastructure will work properly once the sell-off starts in earnest?

That was my main concern – it’s one thing if it crashes and I just watch it happen and choose not to sell but if eToro blocks trading or it falls too fast for sell orders to process so it’s not in your control then that would be gutting

tanking now.