The REAL Lessons to be Learned From the Gamestop Short-Squeeze

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 shit 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 fuck all of us in the long-run.

Original Post: https://stkmktmaster.medium.com/the...-from-the-gamestop-short-squeeze-bb46baec94eb
 

germanburrito

Active member
@GetRichOrDieTrying I agree with a lot of points you made, however i do not think that you could call this stealing from the rich, this is how the market should function, a collective of what the majority of retail investors want, not what the overall money wants. They should not have shorted 150% of the stock and there really is not a case to be made about what wallstreetbets is doing, they are exercising their freedom to share ideas. we should not be scare of wall street passing laws to favor the rich, because retail are the majority and they are the minority> the narrative should be that they do not hold the power to change the rules for their own gain, when for the first time they lose at their own game in which they set the rules to begin with.
 

scott69

Member
Golden Rule - he who has the gold makes the rules. The retail traders, in their quest for equality, have really poked the sleeping bear, no pun intended. I agree with the items listed in the 1st post. They have already quarantined WSB. Yes, the government, supported by the rich, will enact regulations. I had no skin in the game that played out in the last couple days. The posts on WSB showed a lot of anger. Wall Street is a game that, I thought, all the players knew the rules, and tried to play within them. Some bend the rules, some break them. Some get caught, some get away. Happens in EVERY business, trust me. While following the story, I wasn't sure if the WSB traders were mad because they couldn't become millionaires over night, or if they were truly mad at the manipulation that goes on. So, if the latter is the case, they used manipulation to fight manipulation? Although that is not totally wrong, I have a hard time with it. I have always traded and "played" within the rules. I really just trade for a hobby now, being retired. I made my fortune in commercial real estate. Try to deal with Chicago property owners and brokers some time if you really want to see how bad it can get. Anyway, this was a good conversation that needs to be heard, although as my first line states, a group of traders forming a raiding party will only win a few battles but never the war....I hope no one was hurt during the combat.
 

MatthewA

Active member
VIP
@GetRichOrDieTrying you are brilliant my friend...
Only thing I would add is that I think that Citron and some of those guys were smart enough to really hedge their positions...
Well okay maybe not maybe they did lose shares due to market calls. But in the end WallStreetBets has bankrupted more kids who try to trade off of credit cards then will ever meme into short squeezes... And that is the real tragedy
 

germanburrito

Active member
@scott69 The idea of manipulation was never brought to light until WSB acts in the same manner in which the elite do, the elite are the ones giving it a definition. And if that's the definition they give it then the rules should change for them too. lets talk about how the elite lied on CNBC, saying that they covered their position to get retail to sell. This is more than a meme this is a balance of ideas, let ideas flow free and see where that leads a true free market. With that being said WE WONT SELL UNTIL IT SQUEEZES.
 

rad14733

Well-known member
VIP
The issue at hand as far as any punishment can be summed up in one word... Collusion... We retail traders are free to do as we please as far as trading and in recent years we have been welcomed into the trading fold... Granted, some of the institutions and market makers may target the unknowing trader at times, or so it may seem, but that just makes us trade smarter... The problem as I see it is that when a group of traders try to manipulate the market beyond the norm to others, whoever they may be, with the intent to do financial harm, then it crosses the line to be consider collusion... Pressed far enough it could even breach the RICO Act which would take things to yet another level...

I say to every member here, don't jump on any bandwagon that could get you into trouble... Just keep trading the way you have and nobody will bother you or implement new regulations, nor will the brokerages reinstate commissions or add other impediments to dissuade us from trading freely... A few of us discussing and using BTD or TTM_Squeeze won't even be a blip on the radar... But if everyone decides to take the same trades, en masse, with intent to do financial harm, then there could be issues...

One thing the traders who perpetuated the GME debacle don't realize it that their very own brokers may have been hurt financially in the process... Let's not give TDA any reason to see those of us who use the TOS platform, web-based TDA, or mobile App users as the enemy... Just keep trading, keep learning and, hopefully, reap the benefits...

NUFF SAID...
 

germanburrito

Active member
@rad14733

1. COLLUSION
2. RICO ACT
3. BTD
4. GME

1. Collusion is defined as "secret", however this is the opposite of that, you see the idea of buying GME grew publicly and organically, it wasn't behind close doors, like the big players do it. Someone posted it and it grew traction, much like any idea grows on this site, we don't decide whats popular, it just is, this is how any idea should grow. I am very respectful and i considered of your ideas, but we were not welcomed, this
this is our market. The people should be the market.

2. Rico act is a corrupt organization, a group of people conspiring, but once again the elite conspired all the time. I sure dont know how the market should work, should we ban all conspiring of driving a stock up or down, then CNBC should be banned, every hedge fund working together should be be guilty of the RICO ACT, the truth of the matter is that WSB is playing by the rules. and the reality of it is that small players get hurt all the time, we know that 90% of traders already lose money, does anyone care about that? but all of the sudden they care about the little guy that they constantly hurt. We all know they are not on our side.

3. BTD great indicator, but shorting a stock is knowing that you are causing financial harm to the little players. the reaality is they should not short a stock 150%, just like i know what im getting into when i day trade a stock i know the risk, they should know too what would happen, i take full resposabilty for my loses in the market and they should too.

4. TDA should be on our side, lets not forget they need us just as much as we need and respect them, but how they halted the trading of the stock on their platform was not the ultimate most virtues thing to do.

with that being said GME HOLD STRONG. I WILL NOT SELL
 

rad14733

Well-known member
VIP
@germanburrito I stand by every word I stated... If this gets too far out of hand the SEC can find anyone involved... They can bar you from trading, forever should they see fit... If you feel you've done nothing wrong that's fine... But there could be long term implications and I'd rather have members know the potential risks... I feel that you are errant in some of your assumptions and I'd rather err on the side of caution... Once you're in, you're in... YMMV...

And, for the record, its WSB, not GME, that is potentially at fault here...
 

germanburrito

Active member
@germanburrito I stand by every word I stated... If this gets too far out of hand the SEC can find anyone involved... They can bar you from trading, forever should they see fit... If you feel you've done nothing wrong that's fine... But there could be long term implications and I'd rather have members know the potential risks... I feel that you are errant in some of your assumptions and I'd rather err on the side of caution... Once you're in, you're in... YMMV...

And, for the record, its WSB, not GME, that is potentially at fault here...
ofcourse i am errant, everyone and every idea contains a bit of error, that"s why it should be discussed and freedom of expression should always be protected, that way we may polish the truth until we get closer and closer, however i do believe that the problem is not the little guy thats doing things the wrong way, the proble is that the little guy is acting like the big players always act and all of the sudden is a big deal, so they believe the solution is to shut WSB up, or stop people from sharing their beliefs, how else would we become less errant if they try to stop us from sharing ideas and letting the best idea win. YES there is risk, but I rather err on the side of freedom...

WSB may be at fault, but at fault of what? no one is forcing anyone to hold the stock, no one is forcing anyone to buy, it is an idea coming to fruition by its own accord, who do we blame the first person that posted the idea, or the first person that gave it a like, or the third person because now its a group thing, why don't they just incarcerate or ban the idea altogether cause that's who's really at fault, the IDEA.... well thas exactly what they want to do. they want to ban the idea that the small player can win too.
 

MatthewA

Active member
VIP
I don't know that WallStreetBets or the video game store are at fault...
@germanburrito @rad14733
Guys do you remember when COVID-19 started and the rental cars and airlines were insolvent?
The FED rushed in and bid them up and by doing so they brought traders in after them.

More $ was spent pumping Hertz and other crazy things then was ever given to people suffering with the COVID19 lockdowns...

That is one of the powers that the FED has and while this is all cool I don't think the guys on WallStreetBets will ever match the FED it is just some fun and profits we should enjoy right now.
 

rad14733

Well-known member
VIP
@germanburrito I'm not going to litigate any merits of WSB, or lack thereof, here in these forums... My initial point was to implore members to avoid being associated with WSB, not to totally avoid trading GME... However, should they trade GME they should be aware that they could incur unexpected losses... And anyone associating themselves with WSB could, in fact, become complicit should any federal investigations be pursued... And while The "Rico Amendment" precludes civil pursuit by individuals it does not preclude the federal government from such action... Remember, laws are intentionally written with ambiguity which benefits prosecution, not defense... And Article 78 filings are almost always ruled in favor of the laws because any judgement otherwise would set precedent, essentially rendering said laws moot... Don't ask me how I know this and, for the record, I am not a lawyer nor would I ever want to be one... Should you feel the need to pursue this further we can do so via DM on Discord...

Members are free to do as they please with regard to trading GME or any of the securities WSB has or may target but, again, I would implore them to do so independently and let the WSB insanity run its own course... Just steer clear of WSB so as not to leave digital footprints should the shit hit the fan... We have enough hot topics brewing in this country at the moment...

No hard feelings... Trade on...!!!
 

germanburrito

Active member
@germanburrito I'm not going to litigate any merits of WSB, or lack thereof, here in these forums... My initial point was to implore members to avoid being associated with WSB, not to totally avoid trading GME... However, should they trade GME they should be aware that they could incur unexpected losses... And anyone associating themselves with WSB could, in fact, become complicit should any federal investigations be pursued... And while The "Rico Amendment" precludes civil pursuit by individuals it does not preclude the federal government from such action... Remember, laws are intentionally written with ambiguity which benefits prosecution, not defense... And Article 78 filings are almost always ruled in favor of the laws because any judgement otherwise would set precedent, essentially rendering said laws moot... Don't ask me how I know this and, for the record, I am not a lawyer nor would I ever want to be one... Should you feel the need to pursue this further we can do so via DM on Discord...

Members are free to do as they please with regard to trading GME or any of the securities WSB has or may target but, again, I would implore them to do so independently and let the WSB insanity run its own course... Just steer clear of WSB so as not to leave digital footprints should the shit hit the fan...

No hard feelings... Trade on...!!!
More than likely I misread your message, this is true, they should be weary of the consequences of associating with WSB, and this site is not WSB and holds no position on the matter, my point is that there is nothing to fear if people stick together, and great change can ensue if they do so, GME going to 380 being the example.

No hard feelings sensed, none taken... trade on!!!
 

johnny2

New member
What a perfect lie. Who really covered in this squeeze. Some retail traders following it down looks like to me, look at the numbers for yourself the funds love this. They just added at the top and bam look at it now. Like you said theses dino's should expire, but none wants to kill the golden goose. So fake it and draw in a bunch of suckers into the trap then wait a couple of days and presto gold in the bank. They've done this before ,it's just been awhile.
 

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