Investment & Investing

Turned $50k into almost $50m. Unreal.

Wow

A few of us were discussing this last week (unrelated to GameStop), Trading 212's conditions make it pretty clear that trades failing/not able to be made isn't something they are liable for.

I said this earlier, it’s the same with a lot of crypto trading platforms. Something happens and the app or website has a heart attack, it’s BS.

I've no idea what GME will open at tomorrow actually. Having read through a bit more of WSB it appears a lot of redditors have sell limit orders at... $420.69.

Fun times.

But they might be bumping that up :D

Over $500 on opening 🤲🤲

Seems a lot of the big guys have taken new short positions out on the assumption that the stock isn't going to go any higher.

Some sites (such as Ortex) are reporting the float on loan under 100% now, which would indicate the longs are starting to sell up and the shorts are starting to be able to cover. (I wouldn't be surprised if Mr $50mm position has shed a sizeable chunk of that.) Last time this stock was under 100% float on loan was June 2019 (which was about the time that he started to accrue his $50k position.)

One way to cover a huge loss going one way (after having to cover your position with $$$$) is to get the majority of it back on the way back down by shorting it. If too many people think the same then it just continues as it creeps back up to >100% float on loan and the squeeze is on again. So it's either up or horizontal for a long time unless something big happens.

The second squeeze is the borrow cost which is running at ~25% (annual) right now. That's going to hurt a lot for anyone with a sizeable short position but, as always, favours the bigger firms.

(I wouldn't be surprised if Mr $50mm position has shed a sizeable chunk of that.)

Lol, he just posted an hour ago he is still in his position with no exit strategy
https://www.reddit.com/r/wallstreetbets/comments/l6ekdz/gme_yolo_update_jan_27_2021_guess_i_need_102/

Look at his cash total, he's already taken close to $14mm out. He's slowly selling his April calls at about 200-300 a day.

You're right just look at his posts from the last couple of days

This Reddit guy is mad, I mean - I’m sure this can’t be the first time he’s done this.

I just can’t imagine a point where clearing 30mil+ is just another days work.

I invested in AMC during the first lockdown. Only small pocket change. I have 60 shares that I brought at $2.27. I assume this is a good thing as they now seem to be worth considerably more. I'm not really sure what's going on. Should I sell?

Lol. Depends. I can buy a few off you, will round the price to an even £10/share. :P

Sell 3 shares tomorrow, get your investment back and have a nice meal. With 57 shares at current prices, you’ll have $2800 left.

r/wsb have now gone private as can't cope with the demand it seems, their discord has been deleted as well, what a rollercoaster

Seems a lot of the big guys have taken new short positions out on the assumption that the stock isn't going to go any higher.

This makes sense. Sad though because of the institutional shorted with deep pockets.

This Reddit guy is mad, I mean - I’m sure this can’t be the first time he’s done this.

I just can’t imagine a point where clearing 30mil+ is just another days work.

He started to take out his position back mid-2019 when he noticed the stock was being shorted more then 100% of the float. It's taken this long for it to come good and the big firms to continue to attempt to wring the stock dry. If the big firms hadn't of done that he might have made a bit of money and no-one would have heard of it.

But still...

Fucking insane.

They way I think about these things is "have I made a good return on the money in the investment timeframe?"

The answer is clearly a yes. There is zero risk in taking the money now. If you take the cash then stop looking at the share price because you have a nice wad of cash in your pocket and the price now is irrelevant.

Could you have a better return? Maybe. Could double from here. Could drop to below your starting position. There is risk in leaving it though.

Personally I like the idea of taking out your initial investment (maybe a bit more if you could do with the cash), then you have zero risk in leaving the rest there to see what happens.

Personally I like the idea of taking out your initial investment (maybe a bit more if you could do with the cash), then you have zero risk in leaving the rest there to see what happens.

Personally I'd pretend to remove and then put back the initial investment because it won't make much difference having pulled it out BUT compounding effect leaving it in may make it worth so much more. Almost like putting it in the equivalent amount but at this point as a punt.

But this depends on your age, circumstances and risk profile.

^good point on the compounding. I don't like to lose money so my risk tolerance is probably lower than a lot of others.

So this deepfuckingvalue chap is making millions as he sells off older positions, can afford to keep buying in at the higher price to show he's got skin in the game but actually is reducing risk and realising reward all the time whilst there are people putting their last dollar into GME all being egged on by WSB and media hype?

Why are WSB calling him their god when he's making millions at their risk?

When does the market open so we can watch this shit again?

Damn, I've never given a shit about a share before. I feel dirty

some of the winners

https://www.theguardian.com/business/2021/jan/27/gamestop-three-largest-shareholders-earn-over-2bn-amid-stock-surge

it's when these guys sell that the game is over

Thanks for the reply. I think I’m going to take out half which will give me a decent return on my initial investment. I’ll leave the rest in and see what happens.

But you also have to note that the guy needs to make a living. Survive.

If it was you, would you sacrifice yourself to stockmarket martyrdom? Would you be a martyr for GameStop?

That amount could set him up for half a lifetime. And even if he is never in the limelight again, and this hasnt fucked up his perception, he may lead a comfortable life as a normal ass trader.

Also, if it was you and the institutional investors, who have deep pockets, are going to crush the insurrection like a bug, isnt it better to get out now? (to the guy who has a low risk tolerance)