S'pore Reddit User Claims Losses of ~S$81,500 Trading GameStop (NYSE: GME) on Tiger Brokers

[Jamesc]

So when will America go into hyperinflation?

You are just guessing or is there any fundamentals to your statement?

3 minutes ago, Yewheng said:

Yes, because of massive amount of money printed, a lot of money that is pumped onto stock are just like gambling not based on fundamentals, coz when people see stock prices keep rising, at 1st they might think cannot be leh, this abc company business fundamentals where got so good? It's over valued, so never go in. Then months later, the stock of coz got up and down, but overall still continue to go up. Sooner or later more and more investors just neglect the fundamentals as the stock price keep rising and they just want to catch the wave. So now investing stock is like gambling. The problem is that there will be a point where the bubble will pop. 

 

This stock market keep rising, housing price keep rising mightbe a good thing. Coz it is because that these hot money that fed print majority went to stock and housing and bitcoin, consumer price like food is not rising that fast, is its a blessing in disgust. However, when ultimately people will want to spend all these inflated stock market (if it haven't popped yet), profit from inflated housing market and etc. So when that happened, the inflation will go into normal consumer goods. 

 

The thing is that because usd is still a reserve currency, so America is actually causing inflation to all over the world. Coz America keep go deeper into trade deficit where other country work hard for them Labour to provide for it. Imagine if say countries one by one decide to say that's it, inflation in our country is getting too high and think that america is not able to pay us back the money this is owned unless America keep printing more money. So one by one start to say bye bye to America. Then America will go into hyperinflation mode and other countries will suddenly see a sign of relief as in now the hot money is gone and could be able to built a more productive economy (not based on money printing to pump up everything). 

 

[Albeniz]

12 hours ago, Jamesc said:

No its not people buy stocks they don't know the company.

They buy stocks BECAUSE they know the EXACT situation.

Hedge funds sell stock they DONT own at a high price and when it goes down they buy at a lower price to give it to the people that bought from them.

This is called short selling.

When they do it with a lot of money there is an opportunity to buy up thousands of shares hedge funds are selling that they DONT own.

Because they NEED to buy back the shares.

Now if you own thousands of these shares and no one is selling then the hedge funds need to buy the shares at ANY cost no matter how expensive because they OWE the shares and need to settle.

As the price keeps going up they get more desperate and bid higher and higher as they need the shares.

Very smart tactical play and NOT buying shares they don't know anything about the company.

 

Thank you for the short and sharp explanation.  You are one emeritus prof here!

[Throttle2]

47 minutes ago, Yewheng said:

Yes, because of massive amount of money printed, a lot of money that is pumped onto stock are just like gambling not based on fundamentals, coz when people see stock prices keep rising, at 1st they might think cannot be leh, this abc company business fundamentals where got so good? It's over valued, so never go in. Then months later, the stock of coz got up and down, but overall still continue to go up. Sooner or later more and more investors just neglect the fundamentals as the stock price keep rising and they just want to catch the wave. So now investing stock is like gambling. The problem is that there will be a point where the bubble will pop. 

 

This stock market keep rising, housing price keep rising mightbe a good thing. Coz it is because that these hot money that fed print majority went to stock and housing and bitcoin, consumer price like food is not rising that fast, is its a blessing in disgust. However, when ultimately people will want to spend all these inflated stock market (if it haven't popped yet), profit from inflated housing market and etc. So when that happened, the inflation will go into normal consumer goods. 

 

The thing is that because usd is still a reserve currency, so America is actually causing inflation to all over the world. Coz America keep go deeper into trade deficit where other country work hard for them Labour to provide for it. Imagine if say countries one by one decide to say that's it, inflation in our country is getting too high and think that america is not able to pay us back the money this is owned unless America keep printing more money. And if China make the 1st move to say bye bye America, slowly one by one will follow. Then America will go into hyperinflation mode and other countries will suddenly see a sign of relief as in now the hot money is gone and could be able to built a more productive economy (not based on money printing to pump up everything). 

In Singapore context, not accurate

consumer prices even your low end food has gone up 5-10% every year for the last few years.

people's propensity to spend in SG has gone up.   Its a shift in our culture.

people spend a large part their winnings all the time. Very few like me dont.  

the other part of if it is leverage.  Again i am not involved.   As i said our spending savings culture has shifted generally. 

[Albeniz]

Oh... btw, the Reddit people might not exactly be our normal innocent uncle and aunty investors we see on the street.

They are likely to be seasoned ex-bankers and traders in the numbers.

Edited January 30, 2021 by Albeniz

[t0y0ta]

1 hour ago, Albeniz said:

Oh... btw, the Reddit people might not exactly be our normal innocent uncle and aunty investors we see on the street.

They are likely to be seasoned ex-bankers and traders in the numbers.

Reddit posters mostly I see from their language and viewpoints - should be majority teenager to young adults. Almost all are anti-establishment at heart. Very similar demographics to EDMW

[noobcarbuyer]

14 minutes ago, t0y0ta said:

Reddit posters mostly I see from their language and viewpoints - should be majority teenager to young adults. Almost all are anti-establishment at heart. Very similar demographics to EDMW

It's all a particular persona that those online folks put on once they log into those forums. 

Wallstreetbets in reddit have this 4chan-like way of s***-talking and trolling.

While EDMW have their own sub culture that's vaguely xenophobic and very anti-establishment.

There are a lot of crouching tigers and hidden dragons within those forums. As for why they do what they do online, perhaps it's just simply an outlet for them to do whatever they wish with the  anonymity that such forums accord.

[Albeniz]

8 minutes ago, noobcarbuyer said:

It's all a particular persona that those online folks put on once they log into those forums. 

Wallstreetbets in reddit have this 4chan-like way of s***-talking and trolling.

While EDMW have their own sub culture that's vaguely xenophobic and very anti-establishment.

There are a lot of crouching tigers and hidden dragons within those forums. As for why they do what they do online, perhaps it's just simply an outlet for them to do whatever they wish with the  anonymity that such forums accord.

Agree about the crouching tigers and hidden dragons.   There are university professors who surf hardwarezone and edmw too, just like in mcf.

[Albeniz]

I think not just the retail investors from Reddit.  Looking at the volumes, rival hedge funds and international players probably also came in to jack up the price of gamestop too until the shortist go bankrupt.

[Wt_know]

3 minutes ago, Albeniz said:

I think not just the retail investors from Reddit.  Looking at the volumes, rival hedge funds and international players probably also came in to jack up the price of gamestop too until the shortist go bankrupt.

 

[Albeniz]

5 minutes ago, Wt_know said:

 

Yes.  Cannot just be the ah bengs and ah lians from reddit.  Must be some bigger hands behind.

[1fast1]

59 minutes ago, t0y0ta said:

Reddit posters mostly I see from their language and viewpoints - should be majority teenager to young adults. Almost all are anti-establishment at heart. Very similar demographics to EDMW

Demographically, maybe. But they are on average much smarter, and much less intolerant (pro-social justice) than EDMWers. With few exceptions on either side.

I hang out quite frequently and happily on reddit with a reasonable rep score. 

I cannot stand to surf EDMW for long before I start gnashing my teeth at the f**ktardedness of many lusers (no typo) there. 

Edited January 30, 2021 by Turboflat4

[Kb27]

what is end-game ?

if the purpose is to punish hedge funds, they have accomplished it. but the reality is that gamestop will come crushing down to earth and all those reddit followers will be scrambling with each other to unload.

[Mkl22]

17 minutes ago, Kb27 said:

what is end-game ?

if the purpose is to punish hedge funds, they have accomplished it. but the reality is that gamestop will come crushing down to earth and all those reddit followers will be scrambling with each other to unload.

Jenga!

[Throttle2]

1 hour ago, Kb27 said:

what is end-game ?

if the purpose is to punish hedge funds, they have accomplished it. but the reality is that gamestop will come crushing down to earth and all those reddit followers will be scrambling with each other to unload.

I doubt they threw in any life changing amount lah.  Few thousand bucks mostly?. 
if they chose to go big, then have to carry the risk lor.    

[Kb27]

At some point, the musical chair will stop. Don't be left without a seat. 

[Jamesc]

I don't think people here understand what a short squeeze means.

Its not the people on Reddit bidding up the stock price, its Wall Street.

Wall St brokers sold share in GameStop that they DO NOT own.

Hoping the price will crash so they can buy at the lower price to make a profit.

But if people buy up GameStop then the price will rise.

Now because Wall St brokers don't have GS shares they need to buy it at whatever price to give to the party they ALREADY sold to.

If no one is selling then they have to bid HIGHER and HIGHER to tempt someone to sell.

They no choice but to pay whatever is the price no matter how high because they need the shares.

[Jamesc]

Maybe for people in SG to understand.

Some sucker offer you a good price for your HDB and you take the money and move in with your In laws.

You expect property price in SG to crash because you listened to a joker in MCF that scream people borrowed too much to buy flat and when they lose their jobs they will sell at bargain prices and 3 years later you still living with In laws.

OR

During CB you sold your car thinking COE will crash and you got a good price from the stupid car dealer Jamesc.

Then you wait for COE to tank.

Jan 2021 you still don't have a car and come MCF saying This round, This round it will crash.

So who is the fool?

Wall street brokers or Reddit crowd?

Who has lost millions and who is laughing?

Edited January 30, 2021 by Jamesc

[Windwaver]

14 minutes ago, Jamesc said:

I don't think people here understand what a short squeeze means.

Its not the people on Reddit bidding up the stock price, its Wall Street.

Wall St brokers sold share in GameStop that they DO NOT own.

Hoping the price will crash so they can buy at the lower price to make a profit.

But if people buy up GameStop then the price will rise.

Now because Wall St brokers don't have GS shares they need to buy it at whatever price to give to the party they ALREADY sold to.

If no one is selling then they have to bid HIGHER and HIGHER to tempt someone to sell.

They no choice but to pay whatever is the price no matter how high because they need the shares.

Short Selling loh

https://www.investopedia.com/terms/s/shortselling.asp

What Is Short Selling?

Short selling is an investment or trading strategy that speculates on the decline in a stock or other security's price. It is an advanced strategy that should only be undertaken by experienced traders and investors.

Traders may use short selling as speculation, and investors or portfolio managers may use it as a hedge against the downside risk of a long position in the same security or a related one. Speculation carries the possibility of substantial risk and is an advanced trading method. Hedging is a more common transaction involving placing an offsetting position to reduce risk exposure.

In short selling, a position is opened by borrowing shares of a stock or other asset that the investor believes will decrease in value by a set future date—the expiration date. The investor then sells these borrowed shares to buyers willing to pay the market price. Before the borrowed shares must be returned, the trader is betting that the price will continue to decline and they can purchase them at a lower cost. The risk of loss on a short sale is theoretically unlimited since the price of any asset can climb to infinity.