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It’s hard to understand what happens here. Obviously, if market manipulation is bad, then banding together to act en masse and drive stock prices to unreal lev
by codyb 6y ago
It’s hard to understand what happens here.
Obviously, if market manipulation is bad, then banding together to act en masse and drive stock prices to unreal levels is bad.
But, what do you do? Ban the internet? Ban retail traders from accessing the markets? Simplify the markets?
It seems to be a classic pyramid scheme predicated on the idea the hedge funds will pay and maybe a couple will but I suspect Wall St, its executives, other hedge funds, institutional investors and its clearhouses/market makers/brokerages are hoovering up most of the profits, so it seems like an odd way to “get back at them”.
All very bizarre.
- thinkingemote 6y agoThere will be many normal people who got sucked in by the hype and will lose. The house always wins.
- dariusj18 6y agoI don't necessarily think it should change, but I think the fee free trades remove a pretty heavy barrier to this kind of manipulation.
- ldiracdelta 6y agoI think this craziness encourages fundamental questions -- what is the actual value of this stock or commodity? If you're just surfing the wave of the stock ups and downs and jumping onto a band wagon instead of actually understanding whether a stock is overvalued or undervalued by your own investigations, then you're bound to get screwed some day anyways. However, if you know that the market is acting crazy and totally undervaluing a stock due to fundamental analysis that you have done, then you know you should buy it.