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It says as much in the article. He literally just thought GME was undervalued on its merits. He had no intention of creating a squeeze or punishing Melvin.
by tootie 6y ago
It says as much in the article. He literally just thought GME was undervalued on its merits. He had no intention of creating a squeeze or punishing Melvin.
- hehehaha 6y agoThe guy struck rich! Same with people who shorted crude last year when it went straight to -40. Billions were made.
- dbtc 6y agoI realize I need to do some basic reading on this stuff... but, when you say "made" does that really mean "changed hands"? Or is value/money somehow generated in these processes?
- hehehaha 6y agoNo, it’s zero sum.
- alasdair_ 6y agoIt’s zero sum until a too big to fail actor is in danger, then new money is created and the game ceases to be zero sum.
- SuoDuanDao 6y agowell really, at that point everyone's purchasing power is diminished, so the game remains zero sum relative to anything outside itself.
- deleted 6y ago[deleted]
- alasdair_ 6y agoBillions were made, but retail traders lost out. The fact that IBKR couldn’t handle a negative oil price at that time made me realize that for all their marketing as being a higher quality broker for serious investors, they had some serious holes. Then when they stopped buys on GME while Vanguard and Fidelity still allowed them, I gave up on IB completely. Right now I’ve bought puts on IBKR - I expect a lot of clients with money will drop them (along with Robinhood etc.) and move to Vanguard/Fidelity.
- aphextron 6y agoLiquidated everything on Robinhood today and moved to Fidelity.
- hehehaha 6y agoAs a derivative trader and some one who is constantly looking for mispriced assets from the upside (ie short), my number one concern when we have market turmoils is always broker liquidity. This is also why hedge funds have prime accounts directly with bulge brackets. My recommendation is to always have at least two accounts plus Fidelity. FIDO, while expensive, invested a ton of money into their platform/technology. I rarely see them go down. Plus they basically own everything including cryptos. Key is to have multiple accounts and know how to wire money without even looking up the information so that you’re up and running in minutes not hours or days.
- bravura 6y agoWhich are good brokers for the primary two accounts?
- hehehaha 6y agoTo be completely honest, you can’t beat RH and zero commish on options. But I only use it for trades that I can execute over the course of a day. Schwab/TOS is probably going to be the best discount broker when they complete the integration. I don’t like IKBR because it’s not that much better than others unless you are a quant. Pick the products you think you want to trade first then pick the brokers. For example, you don’t want to trade on a platform that doesn’t offer futures because you are more than likely to need it later down the road (this is also why some prefer IKBR due to their breadth in products). And make sure you try their mobile apps since most of them are horrible!
- sumedh 6y ago> He had no intention of creating a squeeze If I am not mistaken he did say in one of his videos that there is a chance for a squeeze to happen.
- ggggtez 6y agoI believe this is CYA (cover your ass) language. Given the recent interest in the case, he's likely saying now that he didn't intend to (or that even if he intended to, he didn't think it was within his power) as a pre-emptive defense against litigation.
- jstanley 6y agoIt's more likely that he thought he was nowhere near influential enough to create one on his own. He would previously have had no reason to believe that his public statements would move the market.
- ggggtez 6y agoThat's exactly what I mean. Even if he thought he had some power, or acted as if he did, it's in his best interest to downplay that as much as possible. This guy was a well known poster. I'm sure he thought he had some power to motivate wsb users to invest, but he might not have predicted he had enough power such that he would get embroiled in an investigation. Regardless of how "internet-tuff-guy" people are, most people really don't like to suddenly be thrown into the limelight of a financial fraud investigation, even if they are innocent of any crimes. Thus, the CYA language. Better to get out in front and claim ignorance just in case.
- ManofPeace 6y agoWhile the narrative has made him the poster boy, you can look at the past discussions regarding GME. His initial posts around a value play were widely ridiculed. The short squeeze thesis(s) were made by other reddit users. Even those weren't particularly popular until around 1/13-1/15 when GME saw an unexpected pop. It was around then people were like "oh this squeeze thing might happen. we could test it"
- ggggtez 6y agoJust because he's still in doesn't mean that it's actually worth $300 on the fundamentals. I could definitely see the argument that $20 was undervalued, but it's plain to see that the short-squeeze is now part of the calculation of value. There is no way that GameStop has an actual fundamental value of $300 per share. That price is clearly inflated, and in a few weeks will decrease, probably to somewhere above $20, but not that much higher. The market will eventually correct, but $300 is an over-correction for sure.
- jzoch 6y agoTrying to figure out the "fundamental" value of anything is a fools errand. Im not saying GME wont drop eventually but there is no value on fundamentals of everything. Look at all the short-sellers of TSLA who made the same mistake. These companies are valued on what the market decides and we all know "The market is irrational".
- shyn3 6y agoWsb can remain irrational longer than the market can remain solvent. That was a comment by a poster which I find funny.
- jdminhbg 6y agoThis is a common aphorism, attributed sometimes to Keynes: https://quoteinvestigator.com/2011/08/09/remain-solvent/ https://quoteinvestigator.com/2011/08/09/remain-solvent/