13 erma vs 9 ema stock market reddit full#

The broader financial investment world thinks these people are morons and degenerates” Vice Historically, the top posts in this subreddit are “loss porn” and “gain porn,”.screenshots of people’s investment portfolios showing how they turned a small amount of money into a huge amount of money in a short period of time, or turned a huge amount of money into a tiny amount of money in a short period of time.

13 erma vs 9 ema stock market reddit full#

So what happened with GameStop? Essentially, a hive mind of average people on Reddit took on ‘Wall Street’ by coming together to put a ‘short squeeze’ on GamesStop stock, after some big hedge fund players bet against the video game company to fail.Ī Reddit forum called Wall Street Bets exists of a group of ordinary folk who enjoy betting their own money on high-risk high-reward options on the stock market: “ It is full of day traders without a ton of money who YOLO their money into a single stock.to hopefully realize a giant profit in a short period of time by taking advantage of temporary price movements. REDDIT VS WALL STREET: THE GAMESTOP EFFECT A ‘short squeeze’ happens when traders, who bet the price of an asset will fall, scramble after the stock jumps sharply higher, unexpectedly.

The risk is that they are counting on being able to replace what they borrowed with something cheaper. It’s a strategy used by high-risk investment funds (hedge funds) to try to maximise profits.įor example (in a successful short selling scenario) investors borrow stock valued at $10 from someone, sell it on for that price, and return the stock to them after buying it back for $7, after the stock price falls, making a $3 profit themselves. Shorting stock or short selling stock essentially is borrowing stock (that you think is going to fall in value) from a broker and selling it at its current price, then buying it back (at the lower price) and returning the shares, but keeping the difference as profit. First up, a short explainer on shorting stock (shares in a corporation).