GetRichOrDieTrying
Member
A WARNING for WallstreetBets Short-Squeezers: Like most retail traders, I have been excited to see institutional investors get destroyed by “The Robbin Hoodies” in stocks like GME, AMC, and EXPR. The elites think retail traders are all a bunch of idiots, which is why they have crowned themselves, “the smart money,” and they refer to us as “the dumb money.” Today, the lords of finance have egg on their face. I digress.
Before we (retail traders) continue to gloat, we need to be aware of the long-term impact of these coordinated short squeezes continuing. In particular, there are 3 things we should all be terrified of, that will impact ALL OF US.
1.) Regulation: After the collapse of the 1990’s dot com bust, The Federal Government created the PDT (Pattern Day Trading Rule) which requires day traders to have an account balance minimum of $25,000. This is how the government pretends to look out for the best interest of retail traders by trying to protect them from themselves. This time around things are worse. The government would be protecting the institutional investors from us. If this continues for too much longer, I GUARANTEE, we will see regulation that will force most retail traders out of the game.
2.) Shutdown of WallstreetBets: Public pressure got The President kicked off of every social media platform on the planet. I say that to say, that we shouldn’t underestimate how easy it will be to shut this entire operation down, by taking away the ability for short-squeezers to disseminate information. You have to keep in mind that short-squeezers are stealing from the rich, and giving unto themselves. That never ends well, and it starts with de-platforming. We should expect that Reddit will come under MAJOR government scrutiny to shut down WallstreetBets, and any other online forum that promotes efforts to execute a coordinated short-squeeze. First, the discussion will start on CNBC, and then it will slowly but surely make its way into the press pool of a White House Press Briefing, at which point, The Federal Government will be forced to act.
3.) Interrupting Market Dynamics: GME, AMC, and EXPR are piece of **** dinosaurs that were barely holding on pre-Covid, and post-Covid, they will face bankruptcy, as “The Great Reset” renders their business models obsolete. Short selling is necessary to provide balance to price discovery. It’s not a perfect vehicle for pricing an asset, but it’s FAR SUPERIOR to over-pricing an asset, which is what this coordinated effort of short squeezing has introduced. Ironically, this leads me back to point #1… Which is regulation. Interrupting market dynamics at such an atrocious level is the PERFECT excuse for the government to regulate the participants who are allowed to play the game. So I beg of you… If you’re engaging in coordinated short-squeezes, tread lightly. What feels like success in the short-term, will **** all of us in the long-run.
Original Post: https://stkmktmaster.medium.com/the...-from-the-gamestop-short-squeeze-bb46baec94eb
Before we (retail traders) continue to gloat, we need to be aware of the long-term impact of these coordinated short squeezes continuing. In particular, there are 3 things we should all be terrified of, that will impact ALL OF US.
1.) Regulation: After the collapse of the 1990’s dot com bust, The Federal Government created the PDT (Pattern Day Trading Rule) which requires day traders to have an account balance minimum of $25,000. This is how the government pretends to look out for the best interest of retail traders by trying to protect them from themselves. This time around things are worse. The government would be protecting the institutional investors from us. If this continues for too much longer, I GUARANTEE, we will see regulation that will force most retail traders out of the game.
2.) Shutdown of WallstreetBets: Public pressure got The President kicked off of every social media platform on the planet. I say that to say, that we shouldn’t underestimate how easy it will be to shut this entire operation down, by taking away the ability for short-squeezers to disseminate information. You have to keep in mind that short-squeezers are stealing from the rich, and giving unto themselves. That never ends well, and it starts with de-platforming. We should expect that Reddit will come under MAJOR government scrutiny to shut down WallstreetBets, and any other online forum that promotes efforts to execute a coordinated short-squeeze. First, the discussion will start on CNBC, and then it will slowly but surely make its way into the press pool of a White House Press Briefing, at which point, The Federal Government will be forced to act.
3.) Interrupting Market Dynamics: GME, AMC, and EXPR are piece of **** dinosaurs that were barely holding on pre-Covid, and post-Covid, they will face bankruptcy, as “The Great Reset” renders their business models obsolete. Short selling is necessary to provide balance to price discovery. It’s not a perfect vehicle for pricing an asset, but it’s FAR SUPERIOR to over-pricing an asset, which is what this coordinated effort of short squeezing has introduced. Ironically, this leads me back to point #1… Which is regulation. Interrupting market dynamics at such an atrocious level is the PERFECT excuse for the government to regulate the participants who are allowed to play the game. So I beg of you… If you’re engaging in coordinated short-squeezes, tread lightly. What feels like success in the short-term, will **** all of us in the long-run.
Original Post: https://stkmktmaster.medium.com/the...-from-the-gamestop-short-squeeze-bb46baec94eb