This is 100% true, BUT, there are also forces at work that want you to believe like you cant make calculated plays that payoff. They want you to shut up, tune out the market, and go about your 9-5. In the right market... the regular guys can win. It's not hard, just risky. They want you to think it's hard so you stay out of it.
Everyone else that's BEEN in this thread will back it up. You're new to this year's market. That's fine, but no need to pretend.
again, if it is accounting-related, it is GAAP-related it it is not accounted-related, it is non-GAAP
The solution isn't to cheer on stuff like this. The regular guys can win with regular investing too. The GME situation is dangerous because it gets awfully close to flat out gambling. That subreddit was called wall street bets after all. Those people literally treat the stock market as a means to gamble your way to a fortune. You can be an intelligent investor with a diversified portfolio and come out just fine. The path to success in the market isn't speculative bets on short squeezes. It's diversified and thoughtful investment in stocks that you actually believe will grow. You can be very engaged with the stock market without resorting to this sort of behavior. Traditional retail investment strategies may not produce an 800% rate of return over a day but nothing is supposed to give you a return like that.
I just don't see "Charlie in Trees" like you do.... It seems like you have sensational view of investing when day trading has been around for a long time and it's just hard to make money in the long term.
GME was a great play 2-3 years in the making. One of the most famous traders in the world, Michael Burry, went long on them. Avid retail investors noticed and continued to speak about it amongst themselves on forums like WSB. Roaring Kitty/Keith Gill/DFV starts to outline the TECHNICALS and reveals his long position to the community. Some people seem interested, others are skeptical. Over time, Gamestop is recognized as a promising, undervalued company, that will get a revenue boost from Next Gen console sales. GME hires a superstar CEO. Meanwhile, on the other side of the spectrum, you have Melvin Capitol. They made a legitimate bad call. They LOST. They made the WRONG play. Nothing crazy has happened yet. Then the news picks it up. The short interest is still sitting. Citron comes in and makes another bad call. The play is right there, it's math, time to curb stomp the short sellers. This was not a get rich quick scheme, these people put in GOOD, HONEST work and WON. Anything after that - blame the media and blame the short sellers for not backing down on a losing hand.
And? Why is the media to blame? It seems like a bunch of folks just need places to channel their anger at the world.
ONLY if those positions will help you diversify your portfolio and you actually believe they will grow. If not take that money and play the Iron Cross, don’t forget to save some for the Yo bet!
I don't see why just because someone is "gambling" in GME, you assume they are not doing other wise investments. Why can't I do everything else (savings account, maxing out 401k, Roth IRA, other quality large caps) and also play GME? Why do I need RH or CNBC to protect me? What's next....not allow people to trade penny stocks? Everyone has to buy S&P 500 index? This reminds me of people complaining about the Rockets taking too many 3s. So? You can take them too. If you don't want to play GME, then don't. There are others willing to take risks for a quick return (or loss).
from the risk perspective, short squeezes are much less risky than shorting stocks yet, u somehow give the shortists a pass. shorting on a stock that has 140% short is reckless/stupid gamble, while the risk associated w a short squeeze---assuming no margin---is limited to the cost of the investment. the risk associated w a short can be limitless you have misplaced your criticism; in the case of GME, it needs to to directed at the reckless/stupid/compacent shortists shorting on a stock w 140% short interest a "diversified" portfolio includes some speculative plays including, but not limited to short squeeze.
You're absolutely delusional if you think Gamestop has an actual business strategy that will save the company. GME is screwed long term. Sales of physical media for games is disappearing rapidly. Game publishers have to sacrifice their margins to sell physical media so they'll continue to gravitate to lower margin online storefronts (Steam, Epic, etc..). Meanwhile, Gamestop's vaunted online strategy does nothing to touch the likes of Steam. Steam (and now Epic) are entrenched as distributors of games and Gamestop doesn't really have a value proposition that will allow them to enter the market. Epic entered because they were able to heavily subsidize publishers in the form of lower margins and lowered margins even further to get some exclusive titles. All of this could be done because Epic has a cash cow in the form of Fortnite. Gamestop doesn't have the money or resources to pull of what Epic did and even then Steam is still the dominant platform. It takes a massive investment to create what Steam has done. Epic is still functionally years away from fully recreating what Steam has and Gamestop has neither the time or money to do this. Shorting Gamestop was never a bad idea. It's a company that probably will fail in the long run but shorting 140% of float was the real problem. You're getting caught up in a story that isn't real. And as I explained in another post, hedge funds are cashing in on Gamestop's surge right now as well. You think these people are fighting hedge funds when hedge funds are probably making most of the money off of Gamestop's rise. If you want to support every day retail investors, then stop glorifying what happened. Those people in reddit are being taken advantage of now too. If you want to support the little guy, you should be encouraging regular diversified investment. And you should support stronger regulations around transparency and disclosures of hedge fund investments as well as limits on some of the tools that hedge funds use (high frequency trading, shorting as a means to bully companies into failing, etc..) But none of this deterred shorting. If anything, this encourages hedge funds to infiltrate WSB in order to trick them into positions that will benefit those hedge funds. GME just demonstrated how easy it is to create a wave of investment from a reddit post and you know that hedge funds will unleash a wave of bots on social media and reddit to recreate this.
Who said I wasn't critical of the funds that shorted GME 140%. That should be illegal. My point is that the short squeeze's success will convince people that the way to prosperity is to recreate these types of waves rather than traditional diversified investment. And it will fail more often than not. And as I mentioned, reddit outed itself as being an easy way to manipulate potential investors. Bots will flood reddit to manufacture investment waves that benefits hedge funds. This is not a black and white debate. The original shorts were 100% wrong (and should be regulated) and the aftermath of this will be bad for the WSB crowd as well. I feel like everyone feels the need to pick a side. The WSB crowd doesn't win in the long run. They will be used and manipulated by institutional investors who see them as a means to make money.
