Reddit Vs hedge funds

[Croesy Blue]

Re: Reddit Vs hedge funds

https://www.reddit.com/r/pics/comments/l77fdv/twelve_years_ago_the_world_was_bankrupted_and/

This is a good thead too

[Taunton Blue Genie]

Re: Reddit Vs hedge funds

We are all familiar with the concept of supply and demand and its effect on prices but how exactly does a share price rise or fall?
Is it due to buyers and sellers across the board individually stipulating in advance certain thresholds that have to be reached before their personal trading activity would kick in?

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Re: Reddit Vs hedge funds

I don't understand how they can say that a group of people getting together to buy up stock is 'manipulating the market'. Surely a hedge fund betting that a stock will go down is 'manipulating the market' just as much, if not more? Also interesting to see that hedge funds are now getting out of other low-priced stock, such as Blackberry, as they think something similar might happen there.

The owner of Gamestop is the one who has made the most money, though of course it's only hard cash if he sells his shares. The sad thing is that once everyone starts selling up, and cashing in their earnings, the share price will go back to where it was. It's a retail business in an online world - it can't last forever. So in a way, the hedge funds were right all along, it's just someone took them for a very expensive ride.

I don't think people will sell, the reddit community isn't the type to be motivated by money. This is about bringing down melvin capital.

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Re: Reddit Vs hedge funds

I'd be interested to know the background behind this. Is it a deliberate attempt to cause hedge funds to lose massive amounts of money? If so, why, and is that wise?
What's to stop the same group of people (who now have a lot more cash to play with) doing the same thing with other shares? If that happened, then 'manipulating the market' would be exactly what it is, surely?

they won't have cash. MC have to maintain their margin calls each day, placing their exposure on deposit. Once the cash runs dry the hedge fund is bankrupt

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Re: Reddit Vs hedge funds

I do a lot of short term trading on 212, and also use reddit for stock tips, So been following this all the way. A lot of platforms including trading 212 have blocked new purchase orders today on GME and AMC essentially attempting to drive the price back down, which is leading to lots of conspiracies!

that is market manipulation, only allowing disposals.

[Feedback]

Re: Reddit Vs hedge funds

What does that business line contribute to the world? nothing as far as I can see. It should be made illegal itself.

shorting provides liquidity to the financial system i.e. cash

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Re: Reddit Vs hedge funds

Robinhood (the stocks app used by many on Reddit in the US) isn't allowing GME stocks to be purchased. Maybe there's been some outside influence on them.

Is this the end of the road? Opening stock price will be a big fall, it seems.

i believe they are owned by the owners of Melvin, Citadel partners

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Re: Reddit Vs hedge funds

We are all familiar with the concept of supply and demand and its effect on prices but how exactly does a share price rise or fall?
Is it due to buyers and sellers across the board individually stipulating in advance certain thresholds that have to be reached before their personal trading activity would kick in?

in this case the price is rising because there is limited demand and all who own shares in GME know that Melvin at some point have to buy back shares to close their position. As there are fewer shares available than what Melvin require to close, the price rises.

read up on how Porsche family took the hedge funds to the cleaners a few years ago. Behind the scenes they were buying up shares in their own company and one day they announced they owned more shares than the market thought. There were not enough shares for the hedge funds to close and the price ballooned making the Porsche family even richer than they already were by a country mile.

[Taunton Blue Genie]

Re: Reddit Vs hedge funds

in this case the price is rising because there is limited demand and all who own shares in GME know that Melvin at some point have to buy back shares to close their position. As there are fewer shares available than what Melvin require to close, the price rises.

read up on how Porsche family took the hedge funds to the cleaners a few years ago. Behind the scenes they were buying up shares in their own company and one day they announced they owned more shares than the market thought. There were not enough shares for the hedge funds to close and the price ballooned making the Porsche family even richer than they already were by a country mile.

Thanks but that's not actually the answer to my question. It was more about the mechanism as to how shares rise and fall in price. I know why.

[WJ99mobile]

Re: Reddit Vs hedge funds

Robinhood has blocked GME trading, so the price will plummet. Looks like someone leaned on them to stop the hedge funds losing so much.

Price has rose 71% today.

[Croesy Blue]

Re: Reddit Vs hedge funds

Price has rose 71% today.

Dropped 12% since open though, I thought it was going to be a very up and down day but surprisingly stable currently.

[lardy]

Re: Reddit Vs hedge funds

Price has rose 71% today.

Most of that rise was out of hours trading. So one of us buying when it opened wouldn't have seen much of that 71%.

Something like, it closed at 193 and opened at 330 (can't remember exactly).

[WJ99mobile]

Re: Reddit Vs hedge funds

Most of that rise was out of hours trading. So one of us buying when it opened wouldn't have seen much of that 71%.

Something like, it closed at 193 and opened at 330 (can't remember exactly).

Yes, I put an order on before I went to bed with FreeTrade at circa 289 and actually opened at 380 with a high of 413.

My trade was blocked though so is now stuck in the app - Great!

[Croesy Blue]

Re: Reddit Vs hedge funds

Yes, I put an order on before I went to bed with FreeTrade at circa 289 and actually opened at 380 with a high of 413.

My trade was blocked though so is now stuck in the app - Great!

It wouldn't have been blocked it just would have been set at 289

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Re: Reddit Vs hedge funds

Thanks but that's not actually the answer to my question. It was more about the mechanism as to how shares rise and fall in price. I know why.

Generally brokers will set the price based on market trading volumes