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Reddit and Gme


Forrest Gump 9

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Market makers and brokers don't have to execute your orders at the price you think and in any stock it's called slippage and happens with any trade. I trade for extremely thin margins all the time and see it constantly.

 

With a stock as volatile as GME right now they could manipulate your amateur sell orders and blame slippage easily. Part of the market makers job is to keep the trades following and I'm sure they get paid to make sure the big boys get top priority over joe noob.

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GME is plummeting!!!

 

Maybe market manipulation by the funds?

I need to read into this more to understand, but probably even then still difficult to tell which invisible hand is moving this situation.

https://seekingalpha.com/instablog/11442671-gerald-klein/3096735-anatomy-of-a-short-attack

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I'm not sure if some of you realize it or not but this has been exactly what happens in penny stocks all the time. Except this time there was a component trying to be a type of justice warrior. Textbook pump and dump, I've been doing this for 25 years. This time all parties tactics have been exposed and many times more noobs have been involved but it's the same thing that normally only a small fraction of traders see routinely.

 

 

I told someone Thursday that the charts don't support "massive" higher prices and I expect a large correction before anything goes higher. The reason for this is simple, each investor had his own goals fears. As prices move higher people get greedy and get in and some people get out taking great gains. As prices move lower people get greedy and sell while they are ahead or got in at wrong time and sell because they lost and a stop loss got hit. As price continues down more people get out or stops execute and people get auto removed. It's all completely explainable. Then theres manipulation and that's normal too and an experienced trader factors that in.

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I’m wrong all the time but like a broken clock I’m right twice a day.

 

Couple things to remember, check the volume? Does it support the crash?

Another thing to look at is the price you see is the last sold price. Who sell and who buy?

Retailers, small investors, can’t buy only allows to sell or can only buy/hold so many share, that creates a one side demand.

What I’m trying to say is one firm selling to another firm at a discount price doesn’t count as market price.

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I read the whole theory over the weekend and it sounded good to the novice but they forgot to add in things the company's and shorts could do to help their side. I think they went overboard getting major media involved but with tens of billions on the line I don't blame them but don't like it either.

 

Shorts can also read charts and put in short positions at the top and ride it down negating their losses. They are called "hedge funds" after all.

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As I said I make the majority of my successful trades as shorts and that huge vertical wall before the weekend was very tempting. I didn't place a short because all my money is considered to valuable to lose right now and saved incase my business doesn't do well for the next year. Looks like I'd have made out good on it though.

 

I'm not going to do any fast volatility trading but I suspect a bottom will form any moment and getting in now and then getting out maybe close of day or in a day or two you might gain a good percentage. Though definitely sell it and immediately enter a short position when you see a top form you could ride this two or three more times but it would take study.

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As you can see the day traders are in the stock now and making waves today and taking profits on both sides of the coin. I normally consider 1-2% in a half hour to be good gains. People are day trading this and doing as good as 50% in the past two hours. 10-20% several times up and down.
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Here's how it works if you're up dump your shares and take the gift that the market has given you. Don't try to hold for Grand slams some people get them but it would be better to take the profit you got and buy when you think there's another good entry point and if you're right sell that when you're in some good profit or at least for God's sake set a stop loss.
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SEC is finally put GME on short restriction list affecting tomorrow. So I guess that means SEC actually doing something and hopefully GME price will start making sense

 

Usually when that happens they are planning to block short attempts because they know something is heading for a nose dive. Its just another way us retailers get limited in how efficiently we can earn in the market. Of course they blocked it after the huge drops today that the fund managers needed.

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Been reflecting on this a bit, Reddit is still acting like the price drop is a "scam" by hedge funds helping each other out, as though hedge funds helping each other out is even a thing. They all spend millions of dollars on software and hardware to try and outcompete each other but we're to believe that none of them would short squeeze each other if they had the chance? Seems unlikely.

 

Last week seems like a fluke, and anyone who didn't cash out is now left holding the bag, eh?

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Been reflecting on this a bit, Reddit is still acting like the price drop is a "scam" by hedge funds helping each other out, as though hedge funds helping each other out is even a thing. They all spend millions of dollars on software and hardware to try and outcompete each other but we're to believe that none of them would short squeeze each other if they had the chance? Seems unlikely.

 

Last week seems like a fluke, and anyone who didn't cash out is now left holding the bag, eh?

 

I think your on to it, If the truth came out, this looks and smells exactly like a pump and dump executed by some people on reddit, the justice warriors just added icing to the cake. I'm willing to bet the instigators sold last week and are basically required now to stay on the forums "leading the charge" to keep it going or they basically did something illegal. Think about it, they can't really come out and say "gotcha suckers". They'd be killed or at the very least in courts for years and likely jail.

 

Trust me I see this all the time and have even learned through loses of my own over the years.

 

1) load up a bunch of shares

2) use your reddit following to pump a stock that has shorts in it heavy and create a false goal of creating an artificial short squeeze (to the moon!)

3) it actually works better than you expected so you double down your bullshit

4) take profit

5) try to avoid prison

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If you guys want to know how to make consistent money in the market this stock is a great example since everyone's been looking at it carefully. Look at it on a 15 day chart. If you ever see that "parabolic" appear on a stock its about to tumble so short it. No stock can go up forever and as things move further from the DMA they get more likely to go back towards that DMA. Its kind of a constant and these parabolic charts are how you make money beyond just being lucky enough to be in a stock before it all happens and then smart enough to actually take the profit as an amazing gift.
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This is what I get for not staying disciplined. Bit of uncharted waters for me, given the circumstances.

 

Luckily, made some heavy moves when it dipped hard today and sold almost at today's peak.

 

 

Still carrying a fair bit though....

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This is what I get for not staying disciplined. Bit of uncharted waters for me, given the circumstances.

 

Luckily, made some heavy moves when it dipped hard today and sold almost at today's peak.

 

 

Still carrying a fair bit though....

 

The sad part is there's a ton more people who have no idea and probably did their first stock purchase in the last week or two because of some guys on an internet forum telling them this is going to the moon.

 

Notice the chart today, the morning bottom was exactly when I said in my earlier post that we are probably near a bottom. If you bought right then and sold within 2 hours you got around a 50% gain. That will happen tomorrow as well at about the same time though probably not as big of a move most stocks do that about 10:30-11:30 after big morning moves or news that drives volume. Afternoons are usually pretty flat which is exactly what we saw today.

 

Yeah I talk a lot, I know. Truth is I've had a rough decade and have only recently recovered financially and as I said I consider the world to risky right now to risk the money I have been able to save and I'm planning my next moves very carefully involving my business, etc or I'd be all over this, but working against it and making money on the small price movements.

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