2021 starts off great with crowd-funded stock market manipulation

[WiredIncorrectly]

This is absolutely crazy. Have a read ... https://www.wsj.com/articles/gamesto...es-11611838175

I don't know trading laws, but if this is found to be manipulation will traders have to pay that money back?

I do agree with this tweet by Robert Reich though: "If Redditors rallying GameStop is unacceptable market manipulation, what would you call greed Wall Street bankers gambling away our economy in 2008 and facing no consequences?".

[WiredIncorrectly]

This is insane. I'll tell you why.

I've just made an account on capital.com and dropped £300 in there. I can purchase GameStop stock, but that's not the aim, but it shows not all places are banning you buying GameStop stock. That's nothing though, there's a bigger picture.

It's called Reddit trading, and it's power in numbers. 100k people buy up company x stock and instantly its value rises. The winners are those investing at the bottom. Which is how wall street works, except they don't need power in numbers because they have power in money. And they get their signals direct from Bloomberg which sits on Wall Street so get signals before any of us peasants. Reddit trading has flipped that.

I'm still looking more into this, but I want a piece of this pie.

I decided to join the Reddit trading discord group. There's 20+ people connecting to that group every single second. I've never seen anything like this. Because of the GameStop manipulation and it's news in the media flocks of people are joining the Reddit trading discord groups and it's happening with stock all over the market. Not just GameStop.

And it begs to question what this going to do to the economy. In such a bullish market it's going to be a risk to float your company. With more people acquiring wealth so easily I fear the value of money will drop in an already hostile economy.

Inflation will occur. It was going to happen anyway with COVID. Also begs to question if this is the transition period into inflation. A scapegoat maybe. There's no evidence behind this, just a stream of thought.

Like I say, I don't know much about stock markets, but I'm about to learn.

[Fishmanpa]

I was watching a story about this on the news last night. Looks like a small minority are really messing with the establishment and causing some havoc on Wall St. Interesting to say the least. GameStop is crashing ATM. Curious to see how it plays out.

Positive thoughts

[WiredIncorrectly]

I was watching a story about this on the news last night. Looks like a small minority are really messing with the establishment and causing some havoc on Wall St. Interesting to say the least. GameStop is crashing ATM. Curious to see how it plays out.

Positive thoughts

The next drop is Monday. So everybody is waiting eagerly. Monday will show another company go through the same process. That's the big channels like /r/wallstreetbets on Reddit. There's a few. The discord group is where the drop comes from so you sit in that chat channel on monday and wait. And then you snap it up as fast as possible. It'll sky rocket and you cash out whenever you feel ready.

The trick is to get in before anybody else. It's likely it'll turn into a majority becoming involved now that it's hit the news. And then things become a little scary for the economy.

Early cashers in will make some money, but then also contributing to any downfall. And then an opposing thought to this is "Well this is what billionaires are doing why are they allowed to"?

I think 2021 might be worse than 2020 at this rate

[ankietyjoe]

This is nothing new, the stock market has always worked this way. This is just more open.

All stock markets are little more than betting shops for frat boys. It's about gambling on other peoples gambles.

[WiredIncorrectly]

I was wrong. This video explains exactly how this works: https://reddit.com/r/Wallstreetbetsn...the_beginning/

Elon Musk is going mad

[Noivous]

Problem is ya gotta put your money somewhere. So do you take a gamble on the market as a-joe says and beat inflation or do you put it in a savings account or under your bed where it makes less than the rate of inflation meaning it's worth less in 15 years than when you made it. That's a personal choice. Many of our parents liked under the mattress. There's something to be said for that I think. I don't understand investing in individual stocks but I do get mutual funds. That's where I invest. But what funds you invest in has a lot to do with your age. About 16 years ago one of my brothers (a janitor) came to me and said I might like to invest some money in one of those mutual funds you were talking about. I said sure how much do you want to invest? I figured he had a few thousand he wanted to put in. He said I have a check here for $75K lol. I almost fell off my chair. Well we dollar cost averaged it over 15 months into a nice simple low cost S&P 500 index fund where it sits today at $325K. He just let it ride the ups and the downs - even through 08 and 09. Never touched it. Not a million dollars but not a bad return either. Historically over time I don't think anything has out performed the market. Real Estate maybe but not sure. Of course you have to know when to go from growth mode to protection mode. Many find that hard to do especially in a bull market.

[WiredIncorrectly]

[WiredIncorrectly]

[Noivous]

Great educational videos, Wired! Thanks for posting!

Interesting case.