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Reddit vs Hedgefund explanation for those who don't understand

Trexxxy

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So basically what is going on in the stock market right now is huge.

A few weeks ago a redditor on wall streets noticed that a hedgefund had taken a massive amount of short position against Gamestop. They convinced everyone on the thread to do the same and buy as many stocks as possible. This position caused a huge soar in prices which made the hedgefunds lose billions. Estimated amount lost was close to 13billion, eventually leading to the hedgefunds closing their position and buying the gamestop shares at an even higher price, making the price rise in even higher this is called a short squeeze. The hedge fund eventually files for bankruptcy
Now the reddit thread is combing through the trades to determine which other hedgefund took a massive position so they can short squeeze them into bankruptcy as well
 
So basically what is going on in the stock market right now is huge.

A few weeks ago a redditor on wall streets noticed that a hedgefund had taken a massive amount of short position against Gamestop. They convinced everyone on the thread to do the same and buy as many stocks as possible. This position caused a huge soar in prices which made the hedgefunds lose billions. Estimated amount lost was close to 13billion, eventually leading to the hedgefunds closing their position and buying the gamestop shares at an even higher price, making the price rise in even higher this is called a short squeeze. The hedge fund eventually files for bankruptcy
Now the reddit thread is combing through the trades to determine which other hedgefund took a massive position so they can short squeeze them into bankruptcy as well
You know hedgefunds has been in the habit of taking advantage of their huge investment in the stock market to muscle out small companies, micro investors and traders.

If 80% of the acclaimed Redditors out there look much closer to discover things like this, small trader and investor will make good money on stocks.
 
This is an interesting topic to dissect and one I would like to follow because its really interesting to me. Reddit is an online forum I have been using for a while and a very credible one at that so what they post there I take serious. But for the hesgefund world the general perception about them is that they are business rogues and thieves who bank on misfortune of others. But to me they only occupied a niche in the investment market and no need to be hostile to them like most people are towards them they just making it for themselves.
 
Thank you for the story and for the added knowledge. To be honest, I am not well-versed with hedgefunds although my idea of it is a manager of a pool of investments. Now with your story I am quite confused why the hedgefund went bankrupt when the demand surged on the stocks of Gamestop. The buyers were buying even at high prices which is also an anomaly to me. Usually you only buy when the price is lower. Anyway, I hope you can clarify on the reason why the hedgefund went bankrupt.
 
So basically what is going on in the stock market right now is huge.

A few weeks ago a redditor on wall streets noticed that a hedgefund had taken a massive amount of short position against Gamestop. They convinced everyone on the thread to do the same and buy as many stocks as possible. This position caused a huge soar in prices which made the hedgefunds lose billions. Estimated amount lost was close to 13billion, eventually leading to the hedgefunds closing their position and buying the gamestop shares at an even higher price, making the price rise in even higher this is called a short squeeze. The hedge fund eventually files for bankruptcy
Now the reddit thread is combing through the trades to determine which other hedgefund took a massive position so they can short squeeze them into bankruptcy as well
This is the second time I'm hearing about Reddit of a thing. I actually don't know what it is all about but I'm very sure it's very important. I'll check the comments of others here in order to know more as this post is not totally explainble about Reddit.
 
I don't really know how this hedge fund work both I would appreciate if someone put me through on how to go through it maybe someday in the future I will be able to be good at it.
 
I had 7 GameStop shares and ended up selling 2 shares for $285 and $350. That allowed me to get my initial investment and a bit of profit back. Now I have 5 shares left over and I'm waiting for the price to go up quite a bit. Can't wait for the short squeeze to start so that we can start making a lot more money.

Hopefully these Hedge Funds suffer a lot 😉
 
With the name of the thread , I thought I will understand the meaning of hedge or Reddit but it's still confusing to me , I can't still understand I wish someone there can put me on
 
Hmmm, pretty smart move from them I must say. Those kind of opportunities are the ones investors should not miss out on. That's why one needs to stay updated.
 
I think it has been something i do not really understand,besed on the norm in investment on ow one will actually go out to invest when the value is low,and wait for the price appriciation to sell.
 
Thank you for the story and the added knowledge. To be honest, I am not well-versed with hedge funds although my idea of it is a manager of a pool of investments. Now with your story, I am quite confused why the hedge fund went bankrupt when the demand surged on the stocks of Gamestop. The buyers were buying even at high prices which is also an anomaly to me. Usually, you only buy when the price is lower. Anyway, I hope you can clarify the reason why the hedge fund went bankrupt.
I'm just seeing this message, I would have replied sooner. The reason the hedge funds were bleeding; let me paint a scenario, imagine a horse race with 15 horses because you had some sort of information you placed a huge bet on horse number 12 to finish 8, but instead of horse no 12 finishing in 8th position, it just keeps on going beyond the 8th, now as the horse keeps overtaking other horses beyond the 8th position your investment is losing value rapidly. Because they have taken a massive position they are losing millions.
 
This is the second time I'm hearing about Reddit of a thing. I actually don't know what it is all about but I'm very sure it's very important. I'll check the comments of others here in order to know more as this post is not totally explainble about Reddit.
Reddit is more like a forum or should I say a social media, depending on how you view it. It is a very popular platform used in discussing various things ranging from movie critics to our daily happenings.
 
So basically what is going on in the stock market right now is huge.

A few weeks ago a redditor on wall streets noticed that a hedgefund had taken a massive amount of short position against Gamestop. They convinced everyone on the thread to do the same and buy as many stocks as possible. This position caused a huge soar in prices which made the hedgefunds lose billions. Estimated amount lost was close to 13billion, eventually leading to the hedgefunds closing their position and buying the gamestop shares at an even higher price, making the price rise in even higher this is called a short squeeze. The hedge fund eventually files for bankruptcy
Now the reddit thread is combing through the trades to determine which other hedgefund took a massive position so they can short squeeze them into bankruptcy as well
WOW!! this is very serious. But do you think such practises are legal? I think its a crime and its like manipulating the stock market. Isn't this related to what Mr. Jordan Belfort was jailed for sometimes ago? Another angle to look at this is what we eventually happens when the Redditors started selling?
 
WOW!! this is very serious. But do you think such practises are legal? I think it's a crime and it's like manipulating the stock market. Isn't this related to what Mr Jordan Belfort has jailed for some time ago? Another angle to look at this is what we eventually happens when the Redditors started selling?
Good question. Practice is like these are within the line I guess, this isn't the first time this is happening most of the time these hedge funds use their positions to their advantage if you dig deep into these trades most of their actions and how they come about their information is illegal. But it is hard to go after them because they have access to the best lawyers around.
 
From the very first moment I read about hedge funds here on this forum, I knew that it's a no go area for me because it doesn't suit my investment personality. They're so aggressive in taking such decisions.
This only goes to solidify my mindset that I wouldn't try to be overly greedy in investing.
 
I've heard about Reddit before, but this is the second time.
Even if I'm not exactly sure what it's about, I'm confident that it's crucial.
Since this post just covers a portion of Reddit, I'll read the comments left by others to learn more.
 
Well the honest truth is that I don't really know how this hedge fund work both I would appreciate if someone put me through on how to go through it maybe someday in the future I will be able to be good at it.
 
Since I don't really understand how hedge funds operate, I would appreciate it if someone could walk me through the process so that perhaps someday I will be able to master it.
 

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