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Old 29.01.2021, 20:42
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Re: Gamestop/Robinhood

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No. They were discussing Ąwhatís the share which has the most short sellerď. Itís not at all random that itís GameStop- the company is dying a painfully slow death and has the most predictable slowly declining course...
Why couldn't they of chosen UBS?
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  #42  
Old 29.01.2021, 21:03
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Re: Gamestop/Robinhood

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Why couldn't they of chosen UBS?
To make the whole thing work should the company not be that big...
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  #43  
Old 29.01.2021, 23:47
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Re: Gamestop/Robinhood

I wonder if CEOs of those companies can cash out all the shares they have?
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  #44  
Old 30.01.2021, 01:22
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Re: Gamestop/Robinhood

What’s the most amazing though that the GME stock traded low end of Thursday session down to $120 and got back on its feet to $325 per share. How long will it stay there in that region before it goes down or might it go up even higher beating Tesla or Google? Doesn’t look like anybody is selling shares yet.

Nothing wrong with having some fun in the market.

https://finance.yahoo.com/news/finan...222203730.html
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  #45  
Old 30.01.2021, 01:33
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Re: Gamestop/Robinhood

To say almost nobody understood how brokerages make money is stretching the truth. PFOF is regulated and explicitly disclosed and broken down to all retail customers. It’s PFOF that has enabled market makers to squash spreads to nothing and for brokerages to charge no fees. Would you prefer to pay fixed high costs? The fact that retail flow is uninformed is a fact of life. It will be the same with or without PFOF. If you make a good trade you can now make it at zero cost and on a tight spread thanks to PFOF. You can’t expect a professional market maker to not make money against a bad retail punter. That is their business!

So spare me the shock and horror conspiracy theory bullshit. This is NOT ‘front running’
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  #46  
Old 30.01.2021, 02:32
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Re: Gamestop/Robinhood

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To say almost nobody understood how brokerages make money is stretching the truth. PFOF is regulated and explicitly disclosed and broken down to all retail customers. Itís PFOF that has enabled market makers to squash spreads to nothing and for brokerages to charge no fees. Would you prefer to pay fixed high costs? The fact that retail flow is uninformed is a fact of life. It will be the same with or without PFOF. If you make a good trade you can now make it at zero cost and on a tight spread thanks to PFOF. You canít expect a professional market maker to not make money against a bad retail punter. That is their business!

So spare me the shock and horror conspiracy theory bullshit. This is NOT Ďfront runningí
Not front running you say? Then how to explain the fact that Robin Hood marketed themselves as a progressive platform for day traders to compete with "elites" and democratize trading for everyone?

Except...

Unbeknownst to those who subscribed to RH's platform, most of the company's revenue came from data and info sold to - well, who would ever guess - Hedge Funds!! Conflict of interest anyone? RH deserves to go under in my view.

Incidentally, in December, RH was fined USD 65 million by the SEC for "misleading statements and omissions in customer communications". Hmmm...

So yes, I believe Hedge Funds were front running trades based on info from RH. Therein lies the irony that when the tables turned on Hedge Funds, they cried foul play. Unbelievable!

To quote Vice news: RH "makes money, namely, by selling users' trades to large firms before they are actually executed."

Here's the article from Vice:

https://www.vice.com/en/article/qjpn...re-the-product
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  #47  
Old 30.01.2021, 02:45
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Re: Gamestop/Robinhood

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from your article terri "Reddit forum called “wallstreetbets” somewhat randomly decide to keep short-sellers from laying waste to a brick-and-mortar retail video game company called GameStop, betting it up in defiance of the Street. "

so was GameStop really a random choice? if so...wow.
I don't think this was random; these Reddit and "Wall Street Bets" players also invested in other shorted stocks like AMC and Bed Bath and Beyond - and from what I have read the silver market as well.

To me, the fact that RH could get away with suspending buy-ins - is ridiculous/unbelievable. Just protecting those Hedge Fund guys from going out of business. I agree with eyebeebe, these platforms need to be better regulated.

Last edited by terrifisch; 30.01.2021 at 04:18.
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  #48  
Old 30.01.2021, 11:05
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Re: Gamestop/Robinhood

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To make the whole thing work should the company not be that big...
Everyone knows that too big to fail doesn't work. Or does everyone know?
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  #49  
Old 30.01.2021, 14:02
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Re: Gamestop/Robinhood

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Everyone knows that too big to fail doesn't work. Or does everyone know?
Big means tons of shares. Gamestop's short interest is > 100%.
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  #50  
Old 30.01.2021, 14:33
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Re: Gamestop/Robinhood

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Not front running you say? Then how to explain the fact that Robin Hood marketed themselves as a progressive platform for day traders to compete with "elites" and democratize trading for everyone?

Except...

Unbeknownst to those who subscribed to RH's platform, most of the company's revenue came from data and info sold to - well, who would ever guess - Hedge Funds!! Conflict of interest anyone? RH deserves to go under in my view.

Incidentally, in December, RH was fined USD 65 million by the SEC for "misleading statements and omissions in customer communications". Hmmm...

So yes, I believe Hedge Funds were front running trades based on info from RH. Therein lies the irony that when the tables turned on Hedge Funds, they cried foul play. Unbelievable!

To quote Vice news: RH "makes money, namely, by selling users' trades to large firms before they are actually executed."

Here's the article from Vice:

https://www.vice.com/en/article/qjpn...re-the-product
Again. Why are you surprised by this? You donít seem to understand how this works. Finra mandates best ex rules and its well monitored by regulators and participants. The fact the flow is sold is not important to the retail customer as long as they get best ex. It is a requirement that brokerages disclose any PFOF and they do. Itís all there for you to see. Retail customers horizons are (or should be) much longer than prop shops so their orders are generally juicy in the short term. They are uninformed on the high frequency horizon. The prop shops donít care about long term predictions as they turn over their positions much quicker. This isnít front running. That is illegal. By definition, if anyone wanted to front run your financial genius grandmaís Robin Hood order, it would not be juicy flow to execute against. The prop shop pays for the flow to execute against it. They take on the opposite position, and that is so good for them that they pay for the flow. Itís the opposite of front running!

Honestly you shouldnít be dabbling in this space if your basic understand is so limited.

A retail punter engaging in day trading is an idiot. Theyíll never win. Youíve no idea how much goes into making that strategy profitable and the huge investment required to do so. Retail customers should be holding their positions over much longer horizons. They want low fees and tight spread to make those transactions as profitable as possible. What enables that is PFOF.

15 years ago fees and spreads were so big they would wipe out most profit from a sensible investment approach. That is no longer the case. So if I was you, Iíd be thanking jump, citadel and tower along with IB et al. for making that possible.
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  #51  
Old 30.01.2021, 16:48
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Re: Gamestop/Robinhood

There is a predence for this kind of social-media driven David v Goliath success story, just not in finance.



Back in 2009, everyone was sick of Simon Cowell engineering the yearly UK Christmas hit. So together they bid "Killing in the name of" by Rage against the Machine to Christmas #1, despite the song being more than a decade old.



I admire this kind of rebellion
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  #52  
Old 30.01.2021, 17:41
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Re: Gamestop/Robinhood

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Whatís the most amazing though that the GME stock traded low end of Thursday session down to $120 and got back on its feet to $325 per share. How long will it stay there in that region before it goes down or might it go up even higher beating Tesla or Google? Doesnít look like anybody is selling shares yet.

Nothing wrong with having some fun in the market.

https://finance.yahoo.com/news/finan...222203730.html
It's all fun and games until "regular" folk start losing life savings. The subreddit is full of "hold, hold, hold" ...but until when? At some point there will be a sell-off because the stock is clearly overvalued and people are going to get cold feet. A small fry non-professional trader doesn't have the deep pockets or experience of a hedge fund.
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  #53  
Old 30.01.2021, 17:52
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Re: Gamestop/Robinhood

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It's all fun and games until "regular" folk start losing life savings. The subreddit is full of "hold, hold, hold" ...but until when? At some point there will be a sell-off because the stock is clearly overvalued and people are going to get cold feet. A small fry non-professional trader doesn't have the deep pockets or experience of a hedge fund.
Unless some hedge fund gets a margin call before that happens
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Old 30.01.2021, 18:14
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Re: Gamestop/Robinhood

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Unless some hedge fund gets a margin call before that happens
Margin calls have already happened. Hedge funds got greedy, people noticed and called bullsh*t. This week will be interesting to say the least as thereís significant short positions due. If the Reddit mob keep their nerve (like they seem to have done yesterday) and hold thereís no reason GME wonít touch 4 figures, as ridiculous as that seems.
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Old 30.01.2021, 20:24
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Re: Gamestop/Robinhood

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There is a predence for this kind of social-media driven David v Goliath success story, just not in finance.



Back in 2009, everyone was sick of Simon Cowell engineering the yearly UK Christmas hit. So together they bid "Killing in the name of" by Rage against the Machine to Christmas #1, despite the song being more than a decade old.



I admire this kind of rebellion
Yeah, me too. I would bid on that too, only if it was a better song. Not sure why these architects of success like Cowell don't stop before it is too obvious. Maybe he'll become a politician one day
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  #56  
Old 30.01.2021, 20:40
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Re: Gamestop/Robinhood

Main St. vs Wall St.


Kick back watch it crumble
See the drowning, watch the fall.
I feel just terrible about it
That's sarcasm, let it burn!

The dinosaurs will slowly die
And I do believe no one will cry
I'm just glad I'm gonna be
There to watch the fall!
Pre-Historic financial industry
Three feet in La Brea tar.
Extinction never felt so good.
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  #57  
Old 01.02.2021, 00:52
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Re: Gamestop/Robinhood

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It's all fun and games until "regular" folk start losing life savings. The subreddit is full of "hold, hold, hold" ...but until when? At some point there will be a sell-off because the stock is clearly overvalued and people are going to get cold feet. A small fry non-professional trader doesn't have the deep pockets or experience of a hedge fund.
It seems like a “pump and dump” culture or “pump and hold” extends from stock market back to crypto currencies. Last two days saw the surge of XRP over 50% and this may not have much to do with Ripple director’s reply to SEC. Seems like altcoins have been targeted by Telegram group. Personally, I have been holding XRP for very long time and I’m glad it can eventually break out of this stagnant run. I saw similar with XLM (Stellar) and ZRX (x0).

https://finance.yahoo.com/news/xrp-p...192841152.html

https://www.cryptonary.com/xrp-ralli...mps-the-token/

In general, if one understands the block chain and its potential, has extra cash for industrial investment gamble then there are big $$$ to be made out there.
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  #58  
Old 01.02.2021, 00:54
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Re: Gamestop/Robinhood

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There is a predence for this kind of social-media driven David v Goliath success story, just not in finance.



Back in 2009, everyone was sick of Simon Cowell engineering the yearly UK Christmas hit. So together they bid "Killing in the name of" by Rage against the Machine to Christmas #1, despite the song being more than a decade old.



I admire this kind of rebellion
if two traders conspire to manipulate the price of a stock it's illegal. no different if 2 million do it either.
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Old 01.02.2021, 10:46
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Re: Gamestop/Robinhood

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if two traders conspire to manipulate the price of a stock it's illegal. no different if 2 million do it either.
Of course it is a lot easier for the SEC to prove two traders manipulating vs. 2 million decentralized retailers
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Old 01.02.2021, 12:10
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Re: Gamestop/Robinhood

The most prominent fellas are already "out" of the game apparently (covered their positions in the lows of Thursday - RH+ blockage helped I suppose).
https://www.wsj.com/articles/melvin-...ts-11612103117
#missionaccomplished?

And % of shorted shares started falling
https://financhill.com/most-heavily-...d-stocks-today

So I wonder how quickly this will crash.
The "fresh" shorts might be happy soon.
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