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Does GameStop Prove the Stock Market Is Rigged?
- chovybizzass 6y agoit proves the little guy can't win.
- icedchai 6y agoThe little guy who bought puts when the stock was at 400 did okay.
- PragmaticPulp 6y agoEarly Gamestop investors made a lot of money on the trade, but only if they ignored the misinformation in /r/WallStreetBets. Wall Street is an easy punching bug, but let's not forget that the misinformation coming from /r/WallStreetBets misled a lot of people into believing that the stock could only go up. The only allowable content in WSB was "diamond hands", rocket emojis, and shaming anyone who dared admit they took profits. It turned into a group pump and dump scheme, but many participants didn't realize that they were supposed to dump the stock before it inevitably crashed back down. The sub is still full of posts encouraging people to hold their stock forever.
- doublejay1999 6y agothe moment one random internet guy posts "this could go to $1000" there is an anchoring effect. It's the oldest boiler room scam on the books. "this could ten bag!" someone cries..... and suddenly you've got people not taking profit at 2x 3x 4x 5x and so on, because they're anchored to 10x.
- boh 6y agoAny market is subject to risk which is most likely asymmetrical between market participants. "Wall Street" isn't some homogenous mass that's collectively conspiring as a unit. The most consistent victims of "Wall Street" machinations is "Wall Street". If there's an opportunity to screw the other guy, people take it. It's unfortunate, but attempts at riches rarely includes moral etiquette.