Wall Street City: Stock Trading & General Investing Thread

NYCFC_Dan

Registered
Staff member
Seasoned Supporter
Mar 17, 2014
7,115
14,301
303
31
Tampa, Florida
is any of this illegal though? as far as i know there has been no private info released and all is based on whatever news was out there about the stock.
I don’t see how any of it is illegal. If anything a stock being shorted 140% should be illegal.
 

Shwafta

Registered
Elite Donor
Jan 16, 2018
4,122
5,246
303
23
Long Island
why would it be even borderline illegal? can't blame robinhood for people who make poor decisions.
That's the same argument for regular sports betting or any other type of gambling. But this is not just people making poor decisions, this is more than that. A lot of unknowing or innocent people getting sucked into something they don't know what they're getting into. It's the same reason smoking, alcohol, etc are all prohibited to minors, and gambling in general is illegal outside of specific locations - because people make poor decisions and ruin their lives when it's readily available.
 

Fantazma

Registered
Seasoned Supporter
Nov 9, 2014
7,159
8,145
303
I don’t see how any of it is illegal. If anything a stock being shorted 140% should be illegal.
right im just seeing on twitter that there are calls for regulation on this...but what exactly is there to regulate?
 

mgarbowski

Registered
Elite Donor
Donor
Seasoned Supporter
Jul 16, 2014
13,537
38,492
353
Queens, NY
mgarbowski.com
is any of this illegal though? as far as i know there has been no private info released and all is based on whatever news was out there about the stock.
I don’t see how any of it is illegal. If anything a stock being shorted 140% should be illegal.
It's not completely unlike a pump and dump scheme, where someone buys shares of a stock regardless of its merits to create a bit of movement up, then starts pumping others to buy because it's going up, and it feeds on itself, and then the pumpers dump the stock near the peak and inevitably it falls back down and all but the earliest investors take a loss.
It's not exactly like that either, as far as we know.

Honestly thinking about it, it is possible this was just a very well disguised pump and dump. I am aware of no evidence for that, but I also know nothing inconsistent.
The scam would be to identify a legitimate short squeeze target, and then get a bunch of small investors involved ostensibly for the squeeze but really to allow the organizer simply to ride the wave and sell high. Frankly it could be hard to disentangle, and this is why securities criminal prosecutions are pretty rare. It's not because Wall Street hustlers have the feds in their pocket (even though they might) but it is simply hard to prove this stuff is intentionally criminal as opposed to a legitimate strategy that went awry).
 

413Blue

Registered
Seasoned Supporter
Apr 23, 2014
3,484
5,759
303
MA
There is rarely such an easy target for this scheme.
The pandemic has some businesses that are technically viable but completely destroyed by the pandemic. They have low market caps, so you don't really need get crazy volume to make this take off. They have high short volume because bankruptcy seems to be looming. They have been beaten down for a long time, so everyone who still owns these shares (prior to squeeze) are institutional or insider and likely won't be selling at the first sign of a surge (as would happen with most stocks, halting the squeeze) so buyers outnumber sellers by far, driving up price, amplified by the fact that these buyers are buying without considering the fundamental value of the asset so they will pay anything. Add that to the shorts who are forced to buy, and there is nothing stopping the price.

DONT BUY AFTER THE SQUEEZE HAS STARTED. YOU WILL BECOME THE VICTIM, LIKELY.
 

moogoo

Registered
Nov 8, 2017
2,905
4,206
273
NYC
There is rarely such an easy target for this scheme.
The pandemic has some businesses that are technically viable but completely destroyed by the pandemic. They have low market caps, so you don't really need get crazy volume to make this take off. They have high short volume because bankruptcy seems to be looming. They have been beaten down for a long time, so everyone who still owns these shares (prior to squeeze) are institutional or insider and likely won't be selling at the first sign of a surge (as would happen with most stocks, halting the squeeze) so buyers outnumber sellers by far, driving up price, amplified by the fact that these buyers are buying without considering the fundamental value of the asset so they will pay anything. Add that to the shorts who are forced to buy, and there is nothing stopping the price.

DONT BUY AFTER THE SQUEEZE HAS STARTED. YOU WILL BECOME THE VICTIM, LIKELY.
or better yet - don't buy/invest in companies that have no value, no worth, no reason for their stock price going up. stick with solid companies. don't get greedy. you can make a killing on good companies too if you choose wisely.
 
  • Like
Reactions: 413Blue

mgarbowski

Registered
Elite Donor
Donor
Seasoned Supporter
Jul 16, 2014
13,537
38,492
353
Queens, NY
mgarbowski.com
Anyone who didn't foresee that the "hate speech isn't free speech" movement would inevitably be used to shut down anything the people in charge don't like just got played. Discord shut down the shorts, and claims it has nothing to do with the trading activity but for hate speech. Lol.


The Reddit is also shut down, but no announcement I'm aware of.
 
  • Like
Reactions: moogoo

413Blue

Registered
Seasoned Supporter
Apr 23, 2014
3,484
5,759
303
MA
Not much of a shock. They've been in the media all day. They probably inundated with spam, hate posts and just crazy traffic overnight.
 
  • Like
Reactions: moogoo

NYCFC_Dan

Registered
Staff member
Seasoned Supporter
Mar 17, 2014
7,115
14,301
303
31
Tampa, Florida
I honestly couldn't say if this is indeed a lie.

It’s like when our forums first opened up and we dealt with CFG fan boys non stop. But worse.
So they’ve been periodically shutting down to prune the Reddit.
Discord’s reasoning is hate speech and it’sa cop out but not exactly wrong. They (the WSB people) refer to new members as ‘retards’ and regularly use derogatory slurs for humor.
I’m sure that played a part in their ban but was likely also a way out to cover their own ass from a SEC investigation.
 

JayH

Registered
Elite Donor
Donor
Seasoned Supporter
Oct 2, 2014
5,226
16,802
353
It’s like when our forums first opened up and we dealt with CFG fan boys non stop. But worse.
So they’ve been periodically shutting down to prune the Reddit.
Discord’s reasoning is hate speech and it’sa cop out but not exactly wrong. They (the WSB people) refer to new members as ‘retards’ and regularly use derogatory slurs for humor.
I’m sure that played a part in their ban but was likely also a way out to cover their own ass from a SEC investigation.
I do miss TypicalCity