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> there are not many guarantees in trading, but that is a guarantee to lose money. What? This is not at all a guarantee. Even if there were a guarantee that it

by cactus2093 6y ago

> there are not many guarantees in trading, but that is a guarantee to lose money. What? This is not at all a guarantee. Even if there were a guarantee that it will come back down eventually (which seems highly likely but that's still not a guarantee), that doesn't mean it will go down today or tomorrow or next week. For all we know there is still lots of time for new investors to get in, make money, and then get out before the price crashes. The particular absurdity of your claim here is that if it were true, we could not possibly have ended up in this place. That's exactly how we got here, people who "knew better" knew that of course this stock was going down and shorted it. Then it went up a little and people shorted it even more and it went up even more, and on and on as this played out over the past few weeks.

2bitencryption 6y ago
the "guarantee" I'm referring to comes from these two assumptions: - the price is overvalued and will correct - the prevailing sentiment on the wsb subreddit is "HOLD NO MATTER HOW HIGH IT GOES" (seriously, that's what they are saying) So, sure, maybe gamestop will magically become a company as valuable as its stock implies it is. But realistically no one would bet on this. So given that it is overvalued by everyone's definition of the term, and given that the hivemind has decided to "HOLD NO MATTER WHAT", it becomes obvious what will eventually happen - the hivemind will keep holding, since that's the meme, and memes drive stocks now - and Gamestop will correct. And that will be that.
reducesuffering 6y ago
> For all we know there is still lots of time for new investors to get in, make money, and then get out before the price crashes. Yes, that means an equivalent amount of people will be holding the huge loss, because they bought in when the previous person got out...
- mrgreenfur 6y ago
  The short squeeze is to force the hedge funds to buy at a high price when they have to cover their short. This is the whole plan.
  - reducesuffering 6y ago
    And once there's no more hedge funds shorting, or not enough capital from retail to squeeze shorts anymore? Price flatlines, retail will eventually start selling, and the downward spiral to play musical chairs will be devastatingly quick.

2bitencryption 6y ago

the "guarantee" I'm referring to comes from these two assumptions: - the price is overvalued and will correct - the prevailing sentiment on the wsb subreddit is "HOLD NO MATTER HOW HIGH IT GOES" (seriously, that's what they are saying) So, sure, maybe gamestop will magically become a company as valuable as its stock implies it is. But realistically no one would bet on this. So given that it is overvalued by everyone's definition of the term, and given that the hivemind has decided to "HOLD NO MATTER WHAT", it becomes obvious what will eventually happen - the hivemind will keep holding, since that's the meme, and memes drive stocks now - and Gamestop will correct. And that will be that.

reducesuffering 6y ago

> For all we know there is still lots of time for new investors to get in, make money, and then get out before the price crashes. Yes, that means an equivalent amount of people will be holding the huge loss, because they bought in when the previous person got out...

mrgreenfur 6y ago
The short squeeze is to force the hedge funds to buy at a high price when they have to cover their short. This is the whole plan.
- reducesuffering 6y ago
  And once there's no more hedge funds shorting, or not enough capital from retail to squeeze shorts anymore? Price flatlines, retail will eventually start selling, and the downward spiral to play musical chairs will be devastatingly quick.