Gyroscopic Investing

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That’s true. Gold is weird.

Gold is the GME of the precious metals world.

Smith1776 wrote: ↑Fri Jan 29, 2021 11:14 pm Gold is the GME of the precious metals world.

But is it going to the moon?

[deleted]

Lol!

I’m going to open up my own bullion shop and call it GoldStop.

Same colour scheme and everything.

dualstow wrote: ↑Fri Jan 29, 2021 7:14 pm

Kriegsspiel wrote: ↑Fri Jan 29, 2021 4:19 pm I just type in GME to the search bar and move the slider on the chart, where it opened at 381 then bounced around for a while. At 1430 it was at 256, at 1515 it was at 322 for the 25% gain in an hour, then it finished the day at $328.

I guess that’s what Ct-Scott did, looked at the opening but not the previous closing.

Sorry, I was being sloppy and thinking about the highs it had reached. It was up to about $410 around 9:50am on Thurs, 1/28. It crashed to around $126 about an hour and a half later (around 11:15am). It wasn't until the prior day that the whole thing even got onto my radar and I was considering buying some, and the next day it wasn't until around that bottom that I had pulled myself from work, signed into TD Ameritrade, and saw where the price was at, where it had been earlier in the day, and started thinking, "Should I get in right now?" and "How much should I put in?". I believe I had transferred $10K in funds to my account the prior day (it was empty), and was initially thinking that I'd probably be out of luck altogether and would need to wait for it to clear, but was pleasantly surprised to see that the funds were available for me to use. So then I started to place an order and, as I was doing it, the stock was rising quickly, so I had to keep revising my order to make sure to adjust the # of shares I wanted and the limit (again, is there a way for me to just plug in, "Get me however many shares I can get for $10K"?).

I ended up missing out on the low, but getting in at around $170, and only putting in about $6K. So, as of this moment, I've doubled my money (but haven't really made anything, since I haven't sold, and, of course, if I had sold it, the govt would be getting a big chunk of that).

But getting back to the point...I guess I was expecting that, given how much extra coverage this has gotten in just 2 days, I was expecting a lot more people to jump in and for the price to have gone up a lot more. But I suspect that when Robinhood stopped allowing buy orders and only allowing sell orders, that that put a ton of downward pressure on the stock. Now that a lot of those customers are looking at other brokerages, maybe we'll see it skyrocket. Of course, the Redditor "experts" believe that it's also going to start to skyrocket this coming week simply with people holding (not selling) and the shorts needing to cover. That's where I'd like to see some reliable source where I can detect when that is happening.

Kriegsspiel wrote: ↑Fri Jan 29, 2021 10:26 am

Xan wrote: ↑Fri Jan 29, 2021 9:39 am I don't think there's anything wrong with short sellers existing, but they're playing a risky game, and they know that. "Punishing" short sellers... hmm. If they've gone so short that they're vulnerable to this (more than 100% of available shares are short?), then they are the ones who have caused this situation.

Again, I'm just an egg, but each short needs to have a corresponding share that it's shorting. I know we've discussed this before in the context of ETFs (TLT, IIRC), but the shares that WSB are buying are the ones that people are shorting. So if over 100% of the stocks are being shorted, that means people are illegally purchasing "naked shorts," or shorting stock that's already been shorted.

This is all very interesting stuff.

I think I understand now that this is the orderflow that is over %100.

It isn't total stock available. It is stock available to purchase.

So more shorts out there than holders willing to sell.

So if more and more people buy to always hold it will get even worse for short sellers.

I don't know how they calculate this though. Maybe outstanding limit orders?

They can't purchase stock to cover their short if nobody is selling.

whatchamacallit wrote: ↑Sat Jan 30, 2021 11:17 am
I think I understand now that this is the orderflow that is over %100.

It isn't total stock available. It is stock available to purchase.

So more shorts out there than holders willing to sell.

So if more and more people buy to always hold it will get even worse for short sellers.

I don't know how they calculate this though. Maybe outstanding limit orders?

They can't purchase stock to cover their short if nobody is selling.

Here's the original reddit posting from about four months ago - showing all of the calculations.

It's a good read.

Mark Leavy wrote: ↑Sat Jan 30, 2021 11:58 am
Here's the original reddit posting from about four months ago - showing all of the calculations.

It's a good read.

Our choice of weapon... $GME.

My favourite part. Such ominous words lol.

Smith1776 wrote: ↑Sat Jan 30, 2021 12:12 pm

Mark Leavy wrote: ↑Sat Jan 30, 2021 11:58 am
Here's the original reddit posting from about four months ago - showing all of the calculations.

It's a good read.

Our choice of weapon... $GME.

My favourite part. Such ominous words lol.

Wow. Thanks. Seems like some smart folks at WSB.

And Ryan Cohen has some clout according to that post.

It makes me wonder even more now. If SEC allows then GME could become next Berkshire Hathaway.

Internet just decides to keep buying and sec lets gme sell new shares.

January 29, 2021
What happened this week
The mechanics behind your trades

https://blog.robinhood.com/news/2021/1/ ... -this-week

With the extraordinary market activity this week, and the temporary restrictions we put in place on certain securities, we’ve received questions about how Robinhood works, trading, clearing and settlement, and clearinghouses. Here’s an overview of the mechanics—or the plumbing—behind your trades. Let’s dive in.

Settling trades

When you buy or sell a stock, Robinhood sends your orders to market makers that execute your trades. Market makers send a record of the trade to Robinhood Securities, which works with a clearinghouse to record the trade. It takes two days for the clearinghouse to transfer the stock to the buyer and funds to the seller. This is known as “clearance and settlement.” In other words: everyone getting what they agreed to when the trade executed. In the industry, this is referred to as the trade date plus two days to settle, or “T+2.”

Meet your clearinghouse

Clearinghouses are SEC-registered organizations that act as the central depository for securities. They keep a record of the stocks owned through a brokerage. Clearing brokerages, like Robinhood Securities, are members of clearinghouses. These clearinghouses have membership rules, approved by the SEC, that govern the activity of their members. Clearinghouses establish financial requirements for members including deposit requirements designed to reduce risk to the clearinghouse.

Clearinghouse requirements

To clear and settle customer transactions, each trading day by 10am ET, clearing brokers like Robinhood Securities have to meet those deposit requirements to support their customer trades between the trade date and the date the trades settle. We withdraw money on some days, and deposit money on other days, depending on that day’s requirement.

How do clearinghouses determine how much is required?

It’s pretty technical, but the process basically works as follows: clearinghouses look at a firm’s customer holdings as a portfolio. They use a volatility multiplier, looking at specific stocks, to quantify their risk. The clearinghouse may assign significant additional charges based on how much of one stock a firm’s customers hold. If a firm’s customers have more buy than sell orders, and the securities they’re buying are more volatile, the deposit requirement will be higher. Clearinghouses can also require additional deposits if certain thresholds are met.

What happened this week

The amount required by clearinghouses to cover the settlement period of some securities rose tremendously this week. How much? To put it in perspective, this week alone, our clearinghouse-mandated deposit requirements related to equities increased ten-fold. And that’s what led us to put temporary buying restrictions in place on a small number of securities that the clearinghouses had raised their deposit requirements on.

It was not because we wanted to stop people from buying these stocks. We did this because the required amount we had to deposit with the clearinghouse was so large—with individual volatile securities accounting for hundreds of millions of dollars in deposit requirements—that we had to take steps to limit buying in those volatile securities to ensure we could comfortably meet our requirements.

Our goal is to enable purchasing for all securities on our platform. This is a dynamic, volatile market, and we have and may continue to take action to make sure we meet our requirements as a broker so we can continue to serve our customers for the long term.

Rest assured, our position remains firm—we stand with our customers and will continue to provide you with the resources and tools you need to become a confident, informed investor.

Anthony Denier, CEO of Webull | ZingerNation

https://www.youtube.com/watch?v=4RS4JIEVyXM

yankees60 wrote: ↑Sat Jan 30, 2021 4:20 pm Anthony Denier, CEO of Webull | ZingerNation

https://www.youtube.com/watch?v=4RS4JIEVyXM

Good video.

Video doesn't get into it too much but it sounds like it really is short over 100% of total stock.

Would only way to completely unwind be to start issuing new stock then?

Is there anyone other than InsuranceGuy that decided to get onboard the GME train?

I invest in a total stock market fund, so I never got off the GME train, bro.

CHOO CHOO!

(That’s my tiny share of the train.)

Tortoise wrote: ↑Sun Jan 31, 2021 12:09 am I invest in a total stock market fund, so I never got off the GME train, bro.

CHOO CHOO!

(That’s my tiny share of the train.)

LOL.

According to the downloadable spreadsheet that specifies the holdings of VCNS, the fund holds 0.00042% in GameStop. VCNS is 75% of my aggregate portfolio, so my total investment in GameStop is 0.000315% of my portfolio.

TO THE MOON.

I bought 1 share on friday lol. Strictly for kicks.

It was about 25x more expensive than the 4,000 shares i sold a couple months ago

Kbg wrote: ↑Wed Jan 27, 2021 4:23 pm And yes I'm posting again on the board after a personal cooling off period which was needed. Maddy needs to be able to rant about a drama queen and so I'm here to provide that for her.

On a more serious note, I very much appreciate the moderators of the board and thank them for a "solid."

If anyone sees me in the politics section again ask me to leave.

Welcome back Kbg!
And yes, the Politics section is a like a neighborhood bar full of the same regulars. Only one special drink is served there. In the tradition of the Long Island Iced Tea, it is a multi ingredient cocktail containing equal parts anger, bitterness, paranoia, condescension, contempt, and with a few dashes of intolerance added on the top. And by bitterness I did not mean Angostura.

If you feel an occasional craving for this drink, stop in. But if you have a taste for something else and (gasp) you say so, you will be asked to leave, in no uncertain terms. Think of the Soup Nazi and the Aub Zam Zam martini.
Above the bar hangs an honorary portrait of Tech who is the legendary equivalent of Bill Brasky at this particular club. Ah Tech. Remember the time Tech said......

MangoMan wrote: ↑Sun Jan 31, 2021 6:58 am

Smith1776 wrote: ↑Sat Jan 30, 2021 9:53 pm Is there anyone other than InsuranceGuy that decided to get onboard the GME train?

Yep. Via long dated puts.

Nice!

I’m in the process of reviving my old full-service brokerage account that allows for options trades.

With all the increased interest in GME, I figured it was time to write up something bigger than a message board post. Here are a few thoughts, including a large dash of Harry Browne that you guys and gals might appreciate.

How to Play the Game and Live to Tell the Tale

Tyler wrote: ↑Sun Jan 31, 2021 3:34 pm With all the increased interest in GME, I figured it was time to write up something bigger than a message board post. Here are a few thoughts, including a large dash of Harry Browne that you guys and gals might appreciate.

How to Play the Game and Live to Tell the Tale

Great article. I’ll be sending it to my friends!

top notch! Tyler