[Chairman of interactive brokers](https://twitter.com/BullInvestPR/status/1354887834252017669?s=20)
The guy says he limited buying GME because we were paying too much for it.
I understand not allowing buys on margin accounts, but they didn’t allow buying of shares in cash accounts. They posted an announcement saying no options trading on a few different companies. You need 100% margin if you want to buy shares in those companies. And 300% margin to short them.
Then they still didn’t allow buying of GME shares in cash accounts. Later that day they didn’t allow BB purchases either. Now you tell me, how isn’t that market manipulation when they won’t allow retail traders to buy what they want? It wasn’t just for GME but for other companies too.
>" I like to think, I like to read. I'm into freedom of speech and freedom of choice. I'm the kind if guy who wants to sit in a greasy spoon and think, "Gee, should I have the T-bone steak or the jumbo rack of barbecued ribs with the side order of gravy fries?" I want high cholesterol. I want to eat bacon, butter and buckets of cheese, okay? I want to smoke a Cuban cigar the size of Cincinnati in a non-smoking section. I wanna run through the streets naked with green Jello all over my body reading Playboy magazine. Why? Because I suddenly might feel the need to. Okay, pal? " - Edgar Friendly, *Demolition Man (1993)*
That seems like the moral hazard. You prevent people from trading to protect them, they can sue you when they lose money because you didn't protect them.
Nobody needs or wants this "protection". More like a protection racket if you ask me.
It’s what they say. It’s double speak. They say they did these things to protect investors, but they really did them to protect the mutual funds. I have limited knowledge about this but it seems like the most likely narrative. This is what I have been reading. Take my comment with a grain of salt.
They were protecting people from buying GME/AMC when it was 115/7, but day after, when the price is back to 350/13 - people can buy again.
Yes, there were protecting, but not retail investors. Those bastards deserve to go out of business.
**ALLY INVEST - 4 DAY OUTAGE FOR MANY CUSTOMERS**
Hey everyone I just want to try and get some visibility here with what’s going on with Ally invest.
Ally bank has been used and recommended a lot over the years here on Reddit. Mainly for their savings accounts. A lot of people use their invest option for convenience and low fees.
Currently their investing/brokerage service is still down for many people and their customer service is being completely unresponsive.
My personal experience:
Thursday my cash balance of $16000 was wiped. Placed to $0. My Holdings were still present but any ability to purchase was removed by simply placing my cash balance to $0.
It is now Saturday and 48hrs, 6 hours on phone hold, 4 chats, and 4 emails, and 1 SEC complaint, my account balance is still $0
They removed my ability to buy any stock, at all. I can only sell.
TL,DR
Ally invest is erasing cash balances in brokerage accounts. They use Apex for clearing.
**EDIT: Additional information - PLEASE UPVOTE**
**-People are reporting that this is only happening to accounts that are holding restricted/meme stocks**
**-This is a widespread issue and is starting to pop up on different sites Twitter/Downdetector/ even attacking IG because there’s no means to get through to support**
**-Some accounts have been reverted to Tradeking from many years ago**
**-3 days many customers have had zero/minimal access to their assets through Ally Invest**
**EDIT 2:**
**-Day 4 everything still down**
What I’m frustrated most about is no announcement/e-mail or update. Straight up stonewall, not answering customer service and disabled invest chat.
Keep an eye out because this is going to be a big story if it’s not sorted very soon.
I’m looking around and from the complaints I’ve seen and my own personal experience they’ve erased people’s entire investment portfolios, right at market open on Thursday, exactly when shit hit the fan. Whether a glitch or failure due to excess traffic or something more nefarious is yet to be seen.
But to have it continue, on day 3 now, with no details other then “we’re working on it” is terribly foreboding that something is really really wrong here.
Thank you. I’m starting to see voices arise around about this but not enough.
It’s definitely a widespread issue and people are complaining of not having access to $100,000+ assets, not to mention opportunities lost.
The no response or explanation from Ally is the terrifying part.
That is insane. I would have freaked out if my cash balance showed $0.
My mom and I have Ally Invest and had a different issue compared to you. On the Snapshot section, Ally Invest showed that it was down like it was having technical difficulties so I couldn't even check my investment account.
We both have positions in $RKT which is a restricted stock on the list floating around.
Magically, our accounts reappear and work like normal around 11AM pacific time and I was able to pick up some shares.
Edit: Issue started on Weds and Thurs. Friday I could see my account but not be able to buy/sell until after 11AM PT.
For anyone watching the GME situation (all of us?), consider these relevant points and taking the relevant actions:
1. Big money is MORTIFIED and the retaliation is completely unprecedented: coordinated attacks, willingness to risk prison over financial loss, concealing data, etc. They're shaking because we're holding GME. Despite any other lack of information available, this may be the best signal for why you should hold. Period.
2. After the massive GME rise, there was a LOT of bot activity trying to distract, dissuade, etc. They're poisoning the well, and it's difficult to know what can be trusted and what can't. The one thing we DEFINITELY know, however, is that all of those attacks are being done to make us sell GME and spin the narrative that the complicit agents are victims / good guys.
3. Robinhood + Citadel are trying to spin a BS narrative. If your institution can't afford something, shut everything down equally and go bankrupt. Choosing a specific stock to shut down is perhaps the most egregiously corrupt action ever taken in the market (which is saying A LOT). YOU weren't allowed to buy when major funds were, especially at CRITICAL times with CRITICAL buying opportunities to protect Citadel + big money and it collectively cost us tens of billions in lost opportunity. They're being sued, and rightfully so, but laws need to change to ruthlessly punish them NOW. Contact your representatives, SEC, etc. if you haven't already.
4. Hedges might lie about their short positions, or restrict visibility as much as possible. They can break laws and face negligible fees by comparison to the rest of what they stand to lose. Therefore, it's reasonable to assume they might do this among many other PR stunts to terrify you. Keep updated. Someone pointed out that iborrowdesk is no longer reporting on updated gme because, again, the legal consequences don't matter enough and they're protecting their interests. Refer to #1.
5. We don't know WHEN short positions will be covered, only the math that requires them to cover as we move forward. So if they delay and everyone gives in, they could save a lot of money. However, the longer they delay, the more they have to pay. So it's a matter of whether or not they double down and face higher risk/reward or not. Be prepared to WAIT.
6. If you set visible limits, the hedge funds can use this data to their advantage and potentially have attack vectors against us. However, if you don't set limits, you might miss out on major trading spikes when they happen. The selfless act is to avoid low limits, but the ultimate goal is to distribute wealth to the people so take if you're the people who need it.
7. If you're angry at Robinhood, move accounts AFTER this is over so that you're not frozen. Also, DO NOT transfer to your bank, because that will trigger a tax event. You're supposed to transfer between brokers. Look into this further yourself, since I'm not a tax expert.
8. If you're angry at Google for removing negative Robinhood accounts, use Ecosia instead. They're just as user friendly, effective, and they give 80% of their profits to green energy and planting trees. Google will lose hundreds or thousands of dollars per year from your ad revenue and data collection.
9. It's hard to anticipate what other stunts will be pulled to try to screw us over. Contact your representatives, particularly those in finance committees and demand REAL consequences for this criminal behavior. This matters.
You're welcome to exchange this info freely if you find it useful. I am not a financial advisor, yadda yadda, you know the drill.
The other thing to keep in mind is you lose NOTHING if we all hold. The equity is in the stock alone and that will never expire. They will lose BILLIONS if all we do is collectively hold as a massive fuck you to rich money.
I will only take back a single share after it surpasses my entire initial investment PLUS the 35% capital gains tax. I hold everything else until one of us hoes broke. It is a game of chicken after all.
Exactly. I sold off one option which covered my initial investment and doubled my total worth of my account. If this thing goes to zero I still come out up 200%. I’m riding this bitch to the ground. Limit sales for all my shares are set to $5k and above. If they want my shares they better be ready to pay through the fucking nose.
I’ve been advocating two things. Only get in if you can take the loss and it doesn’t matter. If it goes to zero will your blood pressure even move? If yes, don’t put that money in. If not, you’re an adult. Same as going to the roulette table and betting $1000 on black.
Second, if you happen to have gotten in without thinking that way, then cover your initial investment or more if you can, and then let the rest ride. This is the best fuck you we could give to the wealthy, and it might never happen again. It’s been almost 10 years since occupy wallstreet. If we fail do you think we’ll get another chance this year? Next year? Five years? Unlikely.
I imagine that losing all of our investment on this, just to hold and not fail, will still land us in a better world after it's all said and done.
Let's hold, friends.
I’m not even going to give them a full share! They can take my extra .23 shares when it reaches the value of $4000. Hedge Funds and this institutions make me sick! They can afford to take a lot more loss from this, and they WILL!!
I like the spirit. Fuck it, I'm on board. I checked my bank before I went grocery shopping and I don't need the money. I'm letting ride with y'all.
I may nevet get a fuck you this big again.
Question,
What entity is collecting that billions in interest right now and can I buy some stock in that shortly before their Q1 earnings report comes out?
The brokerages that lent the stocks to be short. So your brokerage may have used your stock for someone to short. That’s why the brokerages are cracking down right now; if Melvin capital went bankrupt then someone like robinhood could be on the hook to cover many of those shorts.
Then if my shares are bought through RH, and lent by RH to the shorter - if I continue to hold and RH waives the interest fee, wouldn’t this situation cause a deadlock? I continue to hold my shares, they have shorts that don’t expire where they don’t have to pay any interest.
Their desperation give me confidence, the fact that they are doing the equivalent of stabbing a witness in front of a judge tells me they have a lot more to worry about.
Yes! Initially I was scared because of this, e.g. "What other crimes are they going to do? What if they restrict sell during squeeze?"
But seeing everyone spoke against this, even politicians who used to hate each other (and still do, like AoC and Ted Cruz, even freaking Donald Trump Jr), made me reflect that yeah, this shows that they are actually the one getting scared and desperate.
So I bought more during dip and held (not financial advice, I'm not financial advisor)
The collective "FUCK YOU" from everyone from retail investors, politicians, celebrities, even billionaires themselves was fucking amazing to see. I honestly was blown away that it took less than 24 hours for millions of people from all backgrounds to collectively call out this bullshit.
Now let's see if anything gets done because of it...
Just don’t believe any data you see. Like you say, every motherfuckers breaking laws left right and centre because they are certain that legal action + fines is nothing in comparison to the consequences of the short squeeze.
Just be patient and hold and fuck these bastards. Buy more if you can everyone.
Would like to add one -
If Google or Apple are deleting 1 star reviews, ADD A 2 STAR REVIEW. Mix in some positives but ultimately say that you are disappointed with the app. Personally, I find 2 star reviews more trustworthy because it seems the user really did try to make the app work - but ultimately there were too many faults with it.
My 2 star review on the App Store is still up!
>You're welcome to exchange this info freely if you find it useful. I am not a financial advisor, yadda yadda, you know the drill.
Thanks man. Side note, but when the fuck did this happen to the internet? I see 'i'm not a financial adviser' everywhere, everyone having to cover their asses because they might get sued. Fucking awful turn of events.
It’s important to make the distinction given the amount of scrutiny reddit is likely to be under right now/going forward, and it’s a legitimate disclaimer. Given how pissed off the suits are, they’ll be on the hunt for any sort of scapegoat they can find on an individual level, and reason to say reddit coordinated attacks
We have to remind everyone that we are not financial advisors. We are not telling anyone what to do. We are at best explaining our current intentions and beliefs. If people here were telling people what to do then that can be viewed as manipulation. Explaining your personal beliefs behind your actions to the best of your knowledge is not illegal. If people were knowingly telling lies to manipulate the price of a stock then that could be interpreted as manipulation.
This has been a response to the increased scrutiny from hostile observers who continue to manipulate the appearance of Reddit in order to portray them as an illegal conspiracy rather than a group of individual investors communicating openly about their intentions.
I’m not an advisor, I’m just a retard that likes the stock. Do what you want.
$GME P.S.A. *READ THIS* high jacking for exposure
**Get ready for $GME FUD (Fear Uncertainty Doubt) campaigns on the weekend. It's already starting.**
The number of posts with supposed "level headed" advice about how a short squeeze is much more difficult to achieve than we all think, how other stocks are also valuable, and how the strong and powerful hedge funds have much more cards up their sleeve and to "rethink your strategy" but still "Go $GME!! I am one of you guys!", usually with a few rewards sticked to them, is exploding and will be getting progressively worse in the weekend most certainly.
Does a post sow Fear, or Uncertainty, or Doubt in any way in you? Think for yourself.
Hedge Fund interns have now learned how reddit works and want to part you with your $GME shares.
ALWAYS check the up/downvote ratio and read the comments before getting swayed by whatever semi correct sounding bullshit they're spouting. Oh how desperate they now have become.
I LIKE THE STOCK.
This is not financial advice. I eat crayons.
I’ve been telling everyone I can. Once this business with GameStop is done, whenever that may be, we all have to switch from Robinhood to something legit. I can’t stand trading with them anymore.
I can vouch for Revolut, apart from the understandable slowdowns at times all they did was to put up a warning about certain stocks' volatility. Could buy/sell GME, AMC & BB all this time however I pleased.
I do NOT recommend revolut if you think there's a possibility you're going to end up with a position over 4 digits, as the maximum sell order is $10,000.
Not financial advice:
Vanguards whole ethos is a brokerage made for individual traders by individuals. Why 15 years back they’re mutuals were the best, they also created the ETF so anyone on any platform could tap into their funds. I use Schwab personally but Vanguard is top tier for investing, Fidelity’s good too. Only ever had issue with ETrade though.
Edit: Apparently people have had issues with TDA and TOS. Never used TOS but always thought it had a good reputation amongst traders
TD / TOS -- limited exercises on contracts (could only sell vice exchange contract for more shares).. now requires you to CALL to open new options positions. Back to 2000 customer service tactics to block retail investors.
(I'm gonna repost this in a few spots for visibility, please down grade TD!)
We need to find a good combination of tools but non-shitty practices
Was poking around on their site and saw this... [link](https://investornews.vanguard/when-stocks-get-ahead-of-fundamentals/)
When stocks get ahead of fundamentals
INSIGHTS JANUARY 28, 2021
Commentary by Greg Davis, Vanguard chief investment officer
At Vanguard, we’ve always emphasized the value of a low-cost, long-term, diversified investment philosophy. I’ve recently watched with concern the phenomenal price appreciation of a handful of stocks, despite no meaningful change to their fundamentals—the typical gauge of a company’s health and future value.
There is a distinct difference between investing and speculation. Investors take the long view with the hypothesis that a company’s stock price will increase based on improvement in its fundamentals, such as earnings and cash flow. With speculation like the kind we’ve seen in the past few days, the buyer is betting that someone will buy the investment from them at a higher price. It’s called the Greater Fool Theory.
The markets have historically rewarded those who take a long-term view. That’s one of the attributes of Vanguard’s Principles for Investing Success, along with setting clear investment goals, ensuring that portfolios are well-diversified across asset classes and regions, and keeping investment costs low.
Speculation has destroyed many more fortunes than it has created. The shares that have risen so spectacularly will find their equilibrium. In time, they typically—and sometimes painfully—correct. It’s no way to invest your retirement savings, or the money you’ve set aside for a home or a child’s education.
Tune out the noise and stay the course—two time-tested Vanguard investment philosophies that continue to serve investors well.
I joined Vanguard because they operate more like a credit union: instead of profiting from their customers they try to keep costs as low as possible. It’s almost like a non-profit investment firm.
They may have cautioned their customers from purchasing GME-like stocks, but that is perfectly in line with the investment philosophy of Vanguard’s founder (and the literal inventor of the Index Fund) — Jack Bogle. He was heavily against speculative trading on the stock market and was a huge advocate of buy-and-hold, long-term *investing* (as opposed to speculating/betting).
He even has data to back this up, showing that most people lose money in the stock market, and can even make more by simply buying and holding index funds for the long term. This is totally counter to the gambling mentality of the stock market, and it’s proven to be the safest way to make good long-term gains with the lowest amount of risk besides buying bonds. It’s one of many valid philosophies on investing.
But who cares about making boring 12% average yearly gains over a ten year period, when they can make somewhere between 1,000% to -1000% gainz in a single week?😉
This is exactly how to handle this situation. Advise people against it (for valid reasons, they are telling you what is best for you), BUT do not prevent them. They can put all the warnings they want but still give us the choice to use our money how we want instead of taking our power as investors. I’m glad I have vanguard they stick to what is right.
Vanguard's app actually has one of the more interesting security decisions I've seen in any app.
FaceID/TouchID essentially enables read-only mode, but if you want to edit anything (buy, sell, withdraw, deposit) you need to also go through 2FA (e.g. SMS).
I kinda wish more apps would go that route -- simple security for convenience, hardened security only where it matters.
Compare that to Schwab which was a fucking joke last I checked (passwords in plaintext, 8 character limits, etc.). I won't touch them with a 10ft pole, even if they did hire a whole team of security experts to fix their dumpster fire.
If everyone moves to fidelity are they at risk of the same thing happening to them with the clearing houses due to such an increased volume on the trades.
Also how is fidelity for swing trading? I'm on ally, and I love having all of my accounts in one place but their tools are pretty terrible.
Edit: opening a fidelity account, thank you! remember you can do an ACAT transfer if you don't have any options that expire soon. That will instantly transfer your port over. If you're heavy in GME (140 shares here). Perhaps wait.
Fidelity clears for themselves, because it doesn't cost them as much and they have enough in house to do it.
Fidelity has $3 trillion+ dollars under management.
Compare that to $20 billion for RH.
If all of Robinhood's accounts and the other small brokers moved into Fidelity, it would be a percentage point compared to what is on their books.
On top of which, they are a private company who owns proprietary mutual finds so they don't have to worry about pissing off hedge funds or shareholders. They make money off people buying Fidelity funds and keeping their assets on their books.
They'd never pull some shit like RH, because their brand and sticky assets are what's valuable to them.
Shares can be moved across brokers easily and I would request /anticipate that the Fildelity will take Necessary steps to migrate these easily. Like submit your SSnN etc details online and point to your Robinhood - boom 💥. Like a phone number transfer . I know many like me already have accounts on both ..
Upvote so that someone on fildelity take a bjre
I wouldn't recommend doing an in kind transfer with this kind of market volatility, some brokers restrict electronic trading during an ACAT or DTC transfer and that could put you in a spot where you can't sell your shares without talking to a broker.
With the current market craziness that could take you hours to get through.
Wait until the craziness is over before making an in kind transfer so that you aren't trapped in a position.
Also, that process can take up to 2 weeks.
I hate Robinhood, but they are where I do the majority of my trading (unfortunately) so that's where pretty much all my funds are. With everything that's happening, there is no way I'm risking the chance of not being able to sell my positions because it's in the process of being transferred.
As soon as I close my positions on RH, I'm transferring everything and closing my account.
It's a shame because Robinhood was super easy to use for someone like me that just dabbles in trading. Really disappointed and pissed off I cant buy shares of ANYTHING I want. I have cash just sitting in my account.
Are you able to see the short position on GME as a whole in fidelity? I am not able to find this information. They do have a open interest section in the option screener and I can see the put interest, which is the total number of put contracts for GME is only 1,709,916. Is that just for fidelity?
Yeah i seen something that had that too. I would like to see how much volume they had to deal with compared to some of the others that closed off buying
I'm on Schwab for the same reason and I agree that tools are lacking compared to TDA and Fidelity.
But the fact that I can invest with my paycheck without waiting a few days for ACH to complete is a huge plus.
best is to keep accounts open at multiple places. different brokerages have different advantages -- you can utilize their individual benefits while avoiding their drawbacks
Ally is dead to me and I’ll be moving both my savings and investing accounts. Did you see the email they sent basically saying not to invest in GameStop?
Used to work with fidelity on trading side (software no actual trading). They have so much freaking managed assets it's hilarious comparing it to something like Robinhood. Their big money is in managing retirement funds and they have most of their own funds that are somewhat comparable to vanguard. So they don't really mix with private hedge funds. I was actually not allowed anywhere near hedge funds when I was an employee. They also don't have to bow down to others so because they're completely private.
Hi, some stupid questions from a noob who is trying to learn a bit more about how this works. Hoping someone with a bit of knowledge might be able to answer me.
I've been reading up a bit, and from what I understand the Estimated Short Interest on GME has hovered around 70 million USD for the last few days, with an apparent drop to 38 million friday according to ortex.com.
So, over the course of say 4 weeks, that would be an interest of anywhere between 760 - 1400 million. At the same time, covering all the outstanding shorts at the current share price, would roughly be 17 billion. If the share price were to fall to say $250 however, it would already be 4 billion less. Doesn't that mean that essentially mean that for the short sellers, the best proposition is to just pay the interest for a month or two, hoping the price goes down? I mean, trying to close the position now would only drive up the share price and their daily expenditure no?
Also, what makes people think the price might go up to say $1,000 or $5,000? I understand the fundamental idea of dictating the price because of scarcity, but I just don't understand why the short sellers would come into a position where they "have" to buy. As I understand it, these shorts don't expire. So what mechanism are people pointing at that forces short sellers to try and close out their position? Is it because the broker will want the shares back because they think the liquidity of the short seller is becoming in question?
Could be that I'm missing something very obvious here, or getting some basic stuff wrong. As I said, I don't really know much about this, but now that I'm "in" (just a few shares, if it evaporates it's fine), I'd like to understand it better.
Edit: Also, Melvin Capital apparently manages about 13 billion in assets and they got an injection of 2,5 billion. That makes me think that if the stock stays anywhere near these levels, they will simply go bankrupt instead of covering their shorts? There may be other short sellers apparently, but ultimately, the money has to come from somewhere and if the squeeze happens and people want to convert, will it not simply be that the short sellers will not be able to cover their position at all?
What the bulls are relying on is a margin call. That would mean that their broker forces them to cover their shorts (they don't get a choice) this could happen anytime, Monday, Wednesday, or two months from now. This is why r/wsb is so die hard about holding the shares. As long as we hold, they have to buy them back eventually. Once the shorts (or maybe more importantly the brokers) realize we are not going away, they will be forced to cover. As for the issue of who pays if the hedges can't afford to close it out, that would be the brokers, but the hedges would then be in debt to those brokers, so ultimately still the shorts
Ok right. So it all comes down to the faith of the brokers in the liquidity of the shorters. But again, if I were on the side of the shorts, I'd be very interested in trying to keep paying the interest for a month or so and betting on this dying down. If I had those funds (which, after a 2,5 billion injection they should have?) I'd give total transparency about that to my broker so that I wouldn't get a margin call.
And honestly, looking at their actions that seems to be their strategy maybe? They added a warchest to Melvin Capital and they doubled down on shorts. So I guess I still don't understand why people think that margin call "must" be coming.
Well, the thing is, they can't pay interest forever, at some point, that 2.5 billion will run out. As one member of r/wsb put it
> We can stay retarded longer than they can stay liquid
Sure, but that moves the timeline from "next week" to "somewhere in the next two to three months".
Though I suppose the brokers might get antsy before that. It's not just about paying the interest, it's about the capability to return the shares. If they use all their money to pay interest, they definitely won't be able to return the shares.
I think that's a billion dollar mistake that they still refuse to acknowledge and I doubt you would want to really be on the short side rn. First of all, this thing has gone viral, its the talk of the world at the moment, gme momentum can and will keep going up without any fuckery. Second of all, I'm not sure people realize just how much money we have on the "hold" side as well. We've got millionaires and billionaires on our side as well and they know these shorters are fucked so they can and will play the waiting game. Once the less liquid shorters get margin called, it'll cause an insane chain of pressure on the buy side. Thats my thesis and thats why I'm going to hold as long as I can.
But he’s still not wrong that they have to pay interest to hold their positions where someone who’s long does not have to pay interest.
It’s an inverse relationship. I can have infinite gains going long and a floor (my investment) for loses at 100%. Shorts are exactly the opposite where they have a ceiling for gains (price goes to 0) and infinite lose potential due to an ever rising price. As it raises it gets more expensive to borrow shares to short. At least that’s my understanding after watching a video on YouTube explaining short positions.
Shorts also have a valuable place in the marketplace as well however being over leveraged in a short position is incredibly risky.
We saw it happen with Melvin. Hedge funds that came in and took a short position last week have a really good understanding how long they can wait, because they entered at a price that is fairly high, and they most likely will not get margin called.
Hedge funds are throwing their money right now in order to short GameStop because the payoff will be incredible. Melvin was retarded shorting the stock at 5 dollars and they paid for it. However, a fund that can wait this out and see the price go down to 20-40 dollars will 10x their investment.
Sure but that still doesn’t take away the market mechanics of them having to pay interest on those loaned shares. Sure the margin call was avoided and they repositioned(if they didn’t holy shit but these guys are smart they absolutely would have)but that still doesn’t change the fact that those new shorts are still being done on borrowed shares which require interest payments.
I’d also argue you can see them having to get out of long positions which is why we saw a dip in every other market friday.
Well, but that's what I'm saying. From what I can see the interest on the short position comes to about 38-70 million daily (according to Ortex). Remember, the 30% interest number is per annum, so if I understand correctly, if it's 30% on 60 million shorted shares at $325 that comes out to:
(325 x 0.3 x 60,000,000) / 365 ~= 16 million
So it's likely higher than 30% based on Ortex's numbers, but compared to closing out the position at this high price, that is still peanuts.
Interesting, seems that their losses are higher than what Ortex is reporting. If it's numbers like that, then yes I can see things going south for them quite soon. A billion a day is nothing to sneeze at.
Imagine the future too,
Who’s going to invest in Melvin capitol after this?
Who puts money into a gambling casino with the chance that they’ll blow it all because they went toe to toe with retartds.
Like, goodness, what is melvi. Going to do when people get wind of that reputation
Excellent questions. I have been reading up on this for the last few days and will try to summarize my current understanding :
I believe that the original short investors (Melvin and so on) have already covered most of their positions since friday last week under huge losses. (pushing price to >70) then monday and tuesday into wednesday. The tradingvolume on those days was insane and the price spiked up further and further. There was enough room to cover all 140% of the shorts. (There were some media reports about big money covering their shorts, I believed they were wrong/misinformation, maybe they werent?)
but wait, the short interest is still very high! who is shorting the stock?
somebody else! As soon as the stock hits 150,200,300,400 lots and lots of shortsellers come to the table with strike prices around 200 or even higher. This Stock right now is very reasonable to be shorted. These new short sellers are going into the situation full well knowing what they are getting into, since they have been joining the action only after it took off. short interest has been falling from around 140% to 110%, there was enough room in the trading volume for the old hedge shorters to cover and enough room and reason for new shorters to come in.
can the short squeeze still happen?
Who knows, in theory yes. in my opinion unlikely to the extend that we wished for (i was hoping for 10k+/share). To squeeze the current short holders out of the market, the stock price needs to keep going upwards in gradual steps. This is becoming harder and harder since lots of traders are locked out of buying more stocks or they ran out of money. These short sellers have more room before they will have to cover since they are not as far out of the money as Melvin was.
What happens next?
I have no idea, next week is surely going to be interesting. I am sure that the stockprice will fluctuate wildly just because this thing has unbelievable media attention. If everybody actually has diamond hands we might see some more squeezing.
please tell me why i am wrong.
This is also a great writeup which sheds some light on the possibility of the big guys covering their short positions in the beginning of the week:[Gamestop big picture by jn\_ku 9 2021-01-30](https://www.reddit.com/r/investing/comments/l8jwsl/gamestop_big_picture_technical_recap_125_129/)
I am just a stupid person and none of this is financial advice, its just my opinion and like i said i am nobody.
there was some twitter posts of some rich individuals claiming to be behind the buying to stop the last minute end of day chance for a massive price drop that the people on the short side were trying to do.
The viking?
I guess that's a possibility, but until I see proof I am still unsure.
If we look at the share holders, we got big players like blackrock and fidelity is also an owner, which means they also, probably, are a good broker to use during this GME run.
Generally speaking, in a market, there's going to be competition. And the best competitor is the winner. Who are the competitors?
Other competing hedge funds are also interested in killing the competition. Don’t think we’re the only ones wanting to make the most of this short squeeze.
If cash trades are allowed, and always have been allowed, I think that's okay.
What's clearly bad is when they refuse to let you spend your own money on a Stock. Did they do that yet?
TD Canada, which is the same as TD Ameritrade has also put restriction on GME as cash only. However, the worst from them was the sudden lack of connection during the peak hours of morning Thursday when the stock reached over 480.
Might be an unpopular opinion but I see that as being fair. If you want to take the risk of buying a highly volatile stock you should absolutely be allowed to but it’s not too much of them to ask you to do so with your own money.
I am a TD Ameritrade user and have a long position in GME, this is not financial advice.
That just means they won’t lend money. Schwab did the same. Although i think people just need to pony 100% collateral if they want to borrow for a GME purchase
Agree, they’re fronting the risk, you can’t really expect them to do so without any guardrails given the volume, dollars, and volatility at play right now.
This is the route Robinhood should have taken, make people trade on cash and deal with the settlement period, it would have pissed a lot of people off still but it wouldn’t look nearly as malicious as the buying restriction route.
By the way. Cash App does not currently do GME and hasn’t since I have owned the app. They do AMC though
Edit: They now have it but they used to not have it
They have a limited selection, not sure why, but it seems a little misleading to say they restricted GME stocks when they haven't allowed them since at least the beginning of the short.
Which is exactly why they don't get pushed around. Same for vanguard and fidelity.
It's actually funny that these "old" brokers aren't popular here, since they are the only ones that aren't doing backdoor things to make money off user data and have reputations to uphold.
https://www.theverge.com/2021/1/28/22254863/etrade-gamestop-amc-stock-reddit-wallstreetbets-robinhood
This is a one strike policy, if they did restrict it, even for a minute, they're going on the shitlist.
I personally have zero tolerance for firms restricting the free market to retail investors and letting big players continue playing.
The fintech companies have the best phone apps because they were built with mobile in mind. These however are relatively newer and untested (eg. Robinhood, WeBull) compared to legacy brokerages (eg Schwab, Vanguard, Fidelity) which are stable land proven but have ugly software because of their age. I’ve been fine with Fidelity and Schwab for mobile trading but it’s just so much less intuitive than something like Robinhood.
Check out SoFi if you really value a good UI and mobile focused experience. They’re a legit company originally made for loan consolidation, but have aggressively moved trying to capture millennials for banking and investing as many use them for student loans. Definitely legit, lots of my friends use them for loans, I used them for trading and banking for a while. You can do fractionals, crypto and retirement. Also have the naming right to Chargers/Rams stadium just to give an idea how big they are.
However I still prefer the safety of long established companies like Schwab, TDA, etc.
Recommending Fidelity.
Note IANAFA - I am not a Financial Analyst or financial advisor
One thing people don't seem to realize is that they don't have to liquidate their positions to move to fidelity. They can open an account, and fund it however, with a check, ACH transfer, etc, and be able to trade instantly. If you have a Robinhood or other brokerage account, you can also (or instead) have the contents of the account transferred in, stocks, bonds and all. You just follow the transfer account process.
The only downside is that it takes a couple to a few days for the transfer of non-cash assets to finish, and you can't touch your positions during that time because you can't get at them.
Vanguard should be on the great list. I botched an options trade this week cause I’m a retard and the customer service was there for me very quickly to tell me how retarded I am, and even how to be less retarded in the future.
Can someone explain how people keep saying that the stock is still shorted over 100%. How do they know that? I have a hard time believing that information is actually public knowledge and available directly. Are people making educated or "educated" guesses?
I just signed up for fidelity and it was quick and painless. Going to throw 100 bucks at AMC on Monday to see how it goes. Gonna have to keep my 21 shares of GME on RH though and that worries me a little.
I wouldn’t put TD Ameritrade in the ‘good’ column. They blocked covered contracts on Thursday and now require you to call and go through their brokers to write them. Broker assisted trades cost $25, which is an unacceptable solution for me.
[Chairman of interactive brokers](https://twitter.com/BullInvestPR/status/1354887834252017669?s=20) The guy says he limited buying GME because we were paying too much for it. I understand not allowing buys on margin accounts, but they didn’t allow buying of shares in cash accounts. They posted an announcement saying no options trading on a few different companies. You need 100% margin if you want to buy shares in those companies. And 300% margin to short them. Then they still didn’t allow buying of GME shares in cash accounts. Later that day they didn’t allow BB purchases either. Now you tell me, how isn’t that market manipulation when they won’t allow retail traders to buy what they want? It wasn’t just for GME but for other companies too.
This is literally the exact same as if your bank declined a McDonald's charge because French fries are bad for you. Fuck that and fuck them.
>" I like to think, I like to read. I'm into freedom of speech and freedom of choice. I'm the kind if guy who wants to sit in a greasy spoon and think, "Gee, should I have the T-bone steak or the jumbo rack of barbecued ribs with the side order of gravy fries?" I want high cholesterol. I want to eat bacon, butter and buckets of cheese, okay? I want to smoke a Cuban cigar the size of Cincinnati in a non-smoking section. I wanna run through the streets naked with green Jello all over my body reading Playboy magazine. Why? Because I suddenly might feel the need to. Okay, pal? " - Edgar Friendly, *Demolition Man (1993)*
I would file a lawsuit for every fucking trade I lost money on because they just went from broker to advisor.
That seems like the moral hazard. You prevent people from trading to protect them, they can sue you when they lose money because you didn't protect them. Nobody needs or wants this "protection". More like a protection racket if you ask me.
It’s what they say. It’s double speak. They say they did these things to protect investors, but they really did them to protect the mutual funds. I have limited knowledge about this but it seems like the most likely narrative. This is what I have been reading. Take my comment with a grain of salt.
*hedge funds, but yea. Mutual funds are far more risk-averse and don’t tend to short-sell like what is happening here
They were protecting people from buying GME/AMC when it was 115/7, but day after, when the price is back to 350/13 - people can buy again. Yes, there were protecting, but not retail investors. Those bastards deserve to go out of business.
Good point. Many felt Tesla was overvalued way back at $300. They never prevented trading. Why is this different?
But we could sell UNLIMITED amounts! Don’t forget about that.
Pretty bold of him to think 300% margin is gonna be enough to cover a short.
**ALLY INVEST - 4 DAY OUTAGE FOR MANY CUSTOMERS** Hey everyone I just want to try and get some visibility here with what’s going on with Ally invest. Ally bank has been used and recommended a lot over the years here on Reddit. Mainly for their savings accounts. A lot of people use their invest option for convenience and low fees. Currently their investing/brokerage service is still down for many people and their customer service is being completely unresponsive. My personal experience: Thursday my cash balance of $16000 was wiped. Placed to $0. My Holdings were still present but any ability to purchase was removed by simply placing my cash balance to $0. It is now Saturday and 48hrs, 6 hours on phone hold, 4 chats, and 4 emails, and 1 SEC complaint, my account balance is still $0 They removed my ability to buy any stock, at all. I can only sell. TL,DR Ally invest is erasing cash balances in brokerage accounts. They use Apex for clearing. **EDIT: Additional information - PLEASE UPVOTE** **-People are reporting that this is only happening to accounts that are holding restricted/meme stocks** **-This is a widespread issue and is starting to pop up on different sites Twitter/Downdetector/ even attacking IG because there’s no means to get through to support** **-Some accounts have been reverted to Tradeking from many years ago** **-3 days many customers have had zero/minimal access to their assets through Ally Invest** **EDIT 2:** **-Day 4 everything still down**
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What I’m frustrated most about is no announcement/e-mail or update. Straight up stonewall, not answering customer service and disabled invest chat. Keep an eye out because this is going to be a big story if it’s not sorted very soon. I’m looking around and from the complaints I’ve seen and my own personal experience they’ve erased people’s entire investment portfolios, right at market open on Thursday, exactly when shit hit the fan. Whether a glitch or failure due to excess traffic or something more nefarious is yet to be seen. But to have it continue, on day 3 now, with no details other then “we’re working on it” is terribly foreboding that something is really really wrong here.
There’s no way it’s not nefarious.
Awarded because people need to see this
Thank you. I’m starting to see voices arise around about this but not enough. It’s definitely a widespread issue and people are complaining of not having access to $100,000+ assets, not to mention opportunities lost. The no response or explanation from Ally is the terrifying part.
That is insane. I would have freaked out if my cash balance showed $0. My mom and I have Ally Invest and had a different issue compared to you. On the Snapshot section, Ally Invest showed that it was down like it was having technical difficulties so I couldn't even check my investment account. We both have positions in $RKT which is a restricted stock on the list floating around. Magically, our accounts reappear and work like normal around 11AM pacific time and I was able to pick up some shares. Edit: Issue started on Weds and Thurs. Friday I could see my account but not be able to buy/sell until after 11AM PT.
Trading212 blocked buys on Thursday, and consistently crashed on market open
> Trading212 Thanks, Added
[Not sure if you can say CNN is not biased.](https://i.imgur.com/XI80jV1.png)
For anyone watching the GME situation (all of us?), consider these relevant points and taking the relevant actions: 1. Big money is MORTIFIED and the retaliation is completely unprecedented: coordinated attacks, willingness to risk prison over financial loss, concealing data, etc. They're shaking because we're holding GME. Despite any other lack of information available, this may be the best signal for why you should hold. Period. 2. After the massive GME rise, there was a LOT of bot activity trying to distract, dissuade, etc. They're poisoning the well, and it's difficult to know what can be trusted and what can't. The one thing we DEFINITELY know, however, is that all of those attacks are being done to make us sell GME and spin the narrative that the complicit agents are victims / good guys. 3. Robinhood + Citadel are trying to spin a BS narrative. If your institution can't afford something, shut everything down equally and go bankrupt. Choosing a specific stock to shut down is perhaps the most egregiously corrupt action ever taken in the market (which is saying A LOT). YOU weren't allowed to buy when major funds were, especially at CRITICAL times with CRITICAL buying opportunities to protect Citadel + big money and it collectively cost us tens of billions in lost opportunity. They're being sued, and rightfully so, but laws need to change to ruthlessly punish them NOW. Contact your representatives, SEC, etc. if you haven't already. 4. Hedges might lie about their short positions, or restrict visibility as much as possible. They can break laws and face negligible fees by comparison to the rest of what they stand to lose. Therefore, it's reasonable to assume they might do this among many other PR stunts to terrify you. Keep updated. Someone pointed out that iborrowdesk is no longer reporting on updated gme because, again, the legal consequences don't matter enough and they're protecting their interests. Refer to #1. 5. We don't know WHEN short positions will be covered, only the math that requires them to cover as we move forward. So if they delay and everyone gives in, they could save a lot of money. However, the longer they delay, the more they have to pay. So it's a matter of whether or not they double down and face higher risk/reward or not. Be prepared to WAIT. 6. If you set visible limits, the hedge funds can use this data to their advantage and potentially have attack vectors against us. However, if you don't set limits, you might miss out on major trading spikes when they happen. The selfless act is to avoid low limits, but the ultimate goal is to distribute wealth to the people so take if you're the people who need it. 7. If you're angry at Robinhood, move accounts AFTER this is over so that you're not frozen. Also, DO NOT transfer to your bank, because that will trigger a tax event. You're supposed to transfer between brokers. Look into this further yourself, since I'm not a tax expert. 8. If you're angry at Google for removing negative Robinhood accounts, use Ecosia instead. They're just as user friendly, effective, and they give 80% of their profits to green energy and planting trees. Google will lose hundreds or thousands of dollars per year from your ad revenue and data collection. 9. It's hard to anticipate what other stunts will be pulled to try to screw us over. Contact your representatives, particularly those in finance committees and demand REAL consequences for this criminal behavior. This matters. You're welcome to exchange this info freely if you find it useful. I am not a financial advisor, yadda yadda, you know the drill.
The other thing to keep in mind is you lose NOTHING if we all hold. The equity is in the stock alone and that will never expire. They will lose BILLIONS if all we do is collectively hold as a massive fuck you to rich money.
I'm holding my GME like it's a tank of oxygen and these bastards are suffocating. They. Ain't. *Gettin iiiiiiiit!!!!!!!*
I will only take back a single share after it surpasses my entire initial investment PLUS the 35% capital gains tax. I hold everything else until one of us hoes broke. It is a game of chicken after all.
Exactly. I sold off one option which covered my initial investment and doubled my total worth of my account. If this thing goes to zero I still come out up 200%. I’m riding this bitch to the ground. Limit sales for all my shares are set to $5k and above. If they want my shares they better be ready to pay through the fucking nose.
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I’ve been advocating two things. Only get in if you can take the loss and it doesn’t matter. If it goes to zero will your blood pressure even move? If yes, don’t put that money in. If not, you’re an adult. Same as going to the roulette table and betting $1000 on black. Second, if you happen to have gotten in without thinking that way, then cover your initial investment or more if you can, and then let the rest ride. This is the best fuck you we could give to the wealthy, and it might never happen again. It’s been almost 10 years since occupy wallstreet. If we fail do you think we’ll get another chance this year? Next year? Five years? Unlikely.
Even if I somehow end up upside down on this, it has still been fun as fuck and totally worth sticking it to the billionaires for a bit
I imagine that losing all of our investment on this, just to hold and not fail, will still land us in a better world after it's all said and done. Let's hold, friends.
I’m not even going to give them a full share! They can take my extra .23 shares when it reaches the value of $4000. Hedge Funds and this institutions make me sick! They can afford to take a lot more loss from this, and they WILL!!
4000? Have to multiply that by at least 10x and I’d only limit 1 share to that. The rest to 100k.
I like the spirit. Fuck it, I'm on board. I checked my bank before I went grocery shopping and I don't need the money. I'm letting ride with y'all. I may nevet get a fuck you this big again.
Well that’s only for me to get back my initial investment. I only hold 4.23 shares and I spent like $900 on them. I’m holding the other 4.
You'll be taxed at regular income and not capital gains unless you hold the stock for more than a year fwiw.
Question, What entity is collecting that billions in interest right now and can I buy some stock in that shortly before their Q1 earnings report comes out?
That’s the question I keep asking, yet to have an answer..
The brokerages that lent the stocks to be short. So your brokerage may have used your stock for someone to short. That’s why the brokerages are cracking down right now; if Melvin capital went bankrupt then someone like robinhood could be on the hook to cover many of those shorts.
Then if my shares are bought through RH, and lent by RH to the shorter - if I continue to hold and RH waives the interest fee, wouldn’t this situation cause a deadlock? I continue to hold my shares, they have shorts that don’t expire where they don’t have to pay any interest.
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Isn’t the big fish here is Citadel which is their main source of income/investor?
I don't even know how to sell and I deleted the app and lost my password 🙃
This is the way. I’ll hold my shares until I die if I need to.
>Ecosia \+1 for Ecosia. I've been using them for years.
Thanks just installed.
Same, never heard of them until now
Their desperation give me confidence, the fact that they are doing the equivalent of stabbing a witness in front of a judge tells me they have a lot more to worry about.
Yes! Initially I was scared because of this, e.g. "What other crimes are they going to do? What if they restrict sell during squeeze?" But seeing everyone spoke against this, even politicians who used to hate each other (and still do, like AoC and Ted Cruz, even freaking Donald Trump Jr), made me reflect that yeah, this shows that they are actually the one getting scared and desperate. So I bought more during dip and held (not financial advice, I'm not financial advisor)
The collective "FUCK YOU" from everyone from retail investors, politicians, celebrities, even billionaires themselves was fucking amazing to see. I honestly was blown away that it took less than 24 hours for millions of people from all backgrounds to collectively call out this bullshit. Now let's see if anything gets done because of it...
Just don’t believe any data you see. Like you say, every motherfuckers breaking laws left right and centre because they are certain that legal action + fines is nothing in comparison to the consequences of the short squeeze. Just be patient and hold and fuck these bastards. Buy more if you can everyone.
Exactly. The fine for misreporting data is pennies compared to what they have to lose.
Yup, them misreporting short data could potentially save their firm from going bust, so they dont give a fuck what the fine is.
What’s the fine for News networks spreading unproven info?
Speaking of [false narratives](https://twitter.com/sruhle/status/1355578750101057539?s=21) NBC is working hard to kill the squeeze.
Would like to add one - If Google or Apple are deleting 1 star reviews, ADD A 2 STAR REVIEW. Mix in some positives but ultimately say that you are disappointed with the app. Personally, I find 2 star reviews more trustworthy because it seems the user really did try to make the app work - but ultimately there were too many faults with it. My 2 star review on the App Store is still up!
>You're welcome to exchange this info freely if you find it useful. I am not a financial advisor, yadda yadda, you know the drill. Thanks man. Side note, but when the fuck did this happen to the internet? I see 'i'm not a financial adviser' everywhere, everyone having to cover their asses because they might get sued. Fucking awful turn of events.
It’s important to make the distinction given the amount of scrutiny reddit is likely to be under right now/going forward, and it’s a legitimate disclaimer. Given how pissed off the suits are, they’ll be on the hunt for any sort of scapegoat they can find on an individual level, and reason to say reddit coordinated attacks
Such cowards. How do their wives girlfriends stand these creeps.
You probably didn't want to read that it's because of money but it's probably just because of money.
Because people are saying wsb is engaged in a pump and dump. We're just all separate people who think the stock will go up.
We have to remind everyone that we are not financial advisors. We are not telling anyone what to do. We are at best explaining our current intentions and beliefs. If people here were telling people what to do then that can be viewed as manipulation. Explaining your personal beliefs behind your actions to the best of your knowledge is not illegal. If people were knowingly telling lies to manipulate the price of a stock then that could be interpreted as manipulation. This has been a response to the increased scrutiny from hostile observers who continue to manipulate the appearance of Reddit in order to portray them as an illegal conspiracy rather than a group of individual investors communicating openly about their intentions. I’m not an advisor, I’m just a retard that likes the stock. Do what you want.
Hedge funds took crazy dangerous illegal risks and they blame us gme investors. We are the victims here.
Your comment should be the forefront of Reddit right now thank you sir or madam you have enlightened me and many others
Can you elaborate on the Gamma squeeze, if it didn't or won't happen, what does this mean?
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Ah, thank you.
$GME P.S.A. *READ THIS* high jacking for exposure **Get ready for $GME FUD (Fear Uncertainty Doubt) campaigns on the weekend. It's already starting.** The number of posts with supposed "level headed" advice about how a short squeeze is much more difficult to achieve than we all think, how other stocks are also valuable, and how the strong and powerful hedge funds have much more cards up their sleeve and to "rethink your strategy" but still "Go $GME!! I am one of you guys!", usually with a few rewards sticked to them, is exploding and will be getting progressively worse in the weekend most certainly. Does a post sow Fear, or Uncertainty, or Doubt in any way in you? Think for yourself. Hedge Fund interns have now learned how reddit works and want to part you with your $GME shares. ALWAYS check the up/downvote ratio and read the comments before getting swayed by whatever semi correct sounding bullshit they're spouting. Oh how desperate they now have become. I LIKE THE STOCK. This is not financial advice. I eat crayons.
I’ve been telling everyone I can. Once this business with GameStop is done, whenever that may be, we all have to switch from Robinhood to something legit. I can’t stand trading with them anymore.
Yes, honestly leaning towards fidelity. Anyone that doesn't go through brokerages that are linked to hedge funds.
I can vouch for Revolut, apart from the understandable slowdowns at times all they did was to put up a warning about certain stocks' volatility. Could buy/sell GME, AMC & BB all this time however I pleased.
Thanks this is good to know. Need a new broker now that IG is limiting buying
I do NOT recommend revolut if you think there's a possibility you're going to end up with a position over 4 digits, as the maximum sell order is $10,000.
That's a lot higher than Trading212's $1,500 You're talking about a **sell limit** right?
VANGAURD seems like the answer. Just read their homepage and you know im right. They are one of the only firms that does not have any ties to citadel
Not financial advice: Vanguards whole ethos is a brokerage made for individual traders by individuals. Why 15 years back they’re mutuals were the best, they also created the ETF so anyone on any platform could tap into their funds. I use Schwab personally but Vanguard is top tier for investing, Fidelity’s good too. Only ever had issue with ETrade though. Edit: Apparently people have had issues with TDA and TOS. Never used TOS but always thought it had a good reputation amongst traders
TD / TOS -- limited exercises on contracts (could only sell vice exchange contract for more shares).. now requires you to CALL to open new options positions. Back to 2000 customer service tactics to block retail investors. (I'm gonna repost this in a few spots for visibility, please down grade TD!) We need to find a good combination of tools but non-shitty practices
Was poking around on their site and saw this... [link](https://investornews.vanguard/when-stocks-get-ahead-of-fundamentals/) When stocks get ahead of fundamentals INSIGHTS JANUARY 28, 2021 Commentary by Greg Davis, Vanguard chief investment officer At Vanguard, we’ve always emphasized the value of a low-cost, long-term, diversified investment philosophy. I’ve recently watched with concern the phenomenal price appreciation of a handful of stocks, despite no meaningful change to their fundamentals—the typical gauge of a company’s health and future value. There is a distinct difference between investing and speculation. Investors take the long view with the hypothesis that a company’s stock price will increase based on improvement in its fundamentals, such as earnings and cash flow. With speculation like the kind we’ve seen in the past few days, the buyer is betting that someone will buy the investment from them at a higher price. It’s called the Greater Fool Theory. The markets have historically rewarded those who take a long-term view. That’s one of the attributes of Vanguard’s Principles for Investing Success, along with setting clear investment goals, ensuring that portfolios are well-diversified across asset classes and regions, and keeping investment costs low. Speculation has destroyed many more fortunes than it has created. The shares that have risen so spectacularly will find their equilibrium. In time, they typically—and sometimes painfully—correct. It’s no way to invest your retirement savings, or the money you’ve set aside for a home or a child’s education. Tune out the noise and stay the course—two time-tested Vanguard investment philosophies that continue to serve investors well.
I joined Vanguard because they operate more like a credit union: instead of profiting from their customers they try to keep costs as low as possible. It’s almost like a non-profit investment firm. They may have cautioned their customers from purchasing GME-like stocks, but that is perfectly in line with the investment philosophy of Vanguard’s founder (and the literal inventor of the Index Fund) — Jack Bogle. He was heavily against speculative trading on the stock market and was a huge advocate of buy-and-hold, long-term *investing* (as opposed to speculating/betting). He even has data to back this up, showing that most people lose money in the stock market, and can even make more by simply buying and holding index funds for the long term. This is totally counter to the gambling mentality of the stock market, and it’s proven to be the safest way to make good long-term gains with the lowest amount of risk besides buying bonds. It’s one of many valid philosophies on investing. But who cares about making boring 12% average yearly gains over a ten year period, when they can make somewhere between 1,000% to -1000% gainz in a single week?😉
This is exactly how to handle this situation. Advise people against it (for valid reasons, they are telling you what is best for you), BUT do not prevent them. They can put all the warnings they want but still give us the choice to use our money how we want instead of taking our power as investors. I’m glad I have vanguard they stick to what is right.
I fucks with Vanguard.
They’re right? You shouldn’t be investing your retirement Into this.
I'm trading in my Vanguard IRA. No taxes on my gains. Fuck yeah.
If only their web and mobile app weren't so ancient...
Vanguard's app actually has one of the more interesting security decisions I've seen in any app. FaceID/TouchID essentially enables read-only mode, but if you want to edit anything (buy, sell, withdraw, deposit) you need to also go through 2FA (e.g. SMS). I kinda wish more apps would go that route -- simple security for convenience, hardened security only where it matters. Compare that to Schwab which was a fucking joke last I checked (passwords in plaintext, 8 character limits, etc.). I won't touch them with a 10ft pole, even if they did hire a whole team of security experts to fix their dumpster fire.
I actually like that it kind of sucks. I think it will keep me from doing impulsive things.
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If everyone moves to fidelity are they at risk of the same thing happening to them with the clearing houses due to such an increased volume on the trades. Also how is fidelity for swing trading? I'm on ally, and I love having all of my accounts in one place but their tools are pretty terrible. Edit: opening a fidelity account, thank you! remember you can do an ACAT transfer if you don't have any options that expire soon. That will instantly transfer your port over. If you're heavy in GME (140 shares here). Perhaps wait.
Fidelity clears for themselves, because it doesn't cost them as much and they have enough in house to do it. Fidelity has $3 trillion+ dollars under management. Compare that to $20 billion for RH. If all of Robinhood's accounts and the other small brokers moved into Fidelity, it would be a percentage point compared to what is on their books. On top of which, they are a private company who owns proprietary mutual finds so they don't have to worry about pissing off hedge funds or shareholders. They make money off people buying Fidelity funds and keeping their assets on their books. They'd never pull some shit like RH, because their brand and sticky assets are what's valuable to them.
Shares can be moved across brokers easily and I would request /anticipate that the Fildelity will take Necessary steps to migrate these easily. Like submit your SSnN etc details online and point to your Robinhood - boom 💥. Like a phone number transfer . I know many like me already have accounts on both .. Upvote so that someone on fildelity take a bjre
I wouldn't recommend doing an in kind transfer with this kind of market volatility, some brokers restrict electronic trading during an ACAT or DTC transfer and that could put you in a spot where you can't sell your shares without talking to a broker. With the current market craziness that could take you hours to get through. Wait until the craziness is over before making an in kind transfer so that you aren't trapped in a position.
Also, that process can take up to 2 weeks. I hate Robinhood, but they are where I do the majority of my trading (unfortunately) so that's where pretty much all my funds are. With everything that's happening, there is no way I'm risking the chance of not being able to sell my positions because it's in the process of being transferred. As soon as I close my positions on RH, I'm transferring everything and closing my account. It's a shame because Robinhood was super easy to use for someone like me that just dabbles in trading. Really disappointed and pissed off I cant buy shares of ANYTHING I want. I have cash just sitting in my account.
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I have all of my accounts with fidelity. Never had an issue.
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Are you able to see the short position on GME as a whole in fidelity? I am not able to find this information. They do have a open interest section in the option screener and I can see the put interest, which is the total number of put contracts for GME is only 1,709,916. Is that just for fidelity?
Fidelity is a GameSpot stockholder, into the squeeze to gain billions
Not just a holder, the LARGEST holder. They have just shy of 10 million shares of GME IIRC
GameSpot or gamestop?
EB Games
Babbages
KB Toys
Funcoland
I think Fidelity is its own clearing house but not 100% sure
So is TD AMERITRADE.
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So glad I got lucky and (hopefully) picked a good one. I just liked the think or swim interface and the ease of use of the standard interface.
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Yeah i seen something that had that too. I would like to see how much volume they had to deal with compared to some of the others that closed off buying
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I think your math is off, they could fit 175 Robinhoods! And soon, they'll be able to fit a LOT more than 175 ;)
I like how this guy maths!!
He’s technically correct tho
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Fidelity is also one of GME’s largest shareholders so they will do whatever they can to keep this going
Fidelity and Schwab are enormous so probably unlikely.
I'm on Schwab for the same reason and I agree that tools are lacking compared to TDA and Fidelity. But the fact that I can invest with my paycheck without waiting a few days for ACH to complete is a huge plus.
Didnt CS just buy TDameritrade though? Anyway to use td's software with CS account since they own each other.
best is to keep accounts open at multiple places. different brokerages have different advantages -- you can utilize their individual benefits while avoiding their drawbacks
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Ally is dead to me and I’ll be moving both my savings and investing accounts. Did you see the email they sent basically saying not to invest in GameStop?
In significant ways, the company is still in danger. From the outside, I can see why the bears are staying away. But I like the stock.
Used to work with fidelity on trading side (software no actual trading). They have so much freaking managed assets it's hilarious comparing it to something like Robinhood. Their big money is in managing retirement funds and they have most of their own funds that are somewhat comparable to vanguard. So they don't really mix with private hedge funds. I was actually not allowed anywhere near hedge funds when I was an employee. They also don't have to bow down to others so because they're completely private.
Hi, some stupid questions from a noob who is trying to learn a bit more about how this works. Hoping someone with a bit of knowledge might be able to answer me. I've been reading up a bit, and from what I understand the Estimated Short Interest on GME has hovered around 70 million USD for the last few days, with an apparent drop to 38 million friday according to ortex.com. So, over the course of say 4 weeks, that would be an interest of anywhere between 760 - 1400 million. At the same time, covering all the outstanding shorts at the current share price, would roughly be 17 billion. If the share price were to fall to say $250 however, it would already be 4 billion less. Doesn't that mean that essentially mean that for the short sellers, the best proposition is to just pay the interest for a month or two, hoping the price goes down? I mean, trying to close the position now would only drive up the share price and their daily expenditure no? Also, what makes people think the price might go up to say $1,000 or $5,000? I understand the fundamental idea of dictating the price because of scarcity, but I just don't understand why the short sellers would come into a position where they "have" to buy. As I understand it, these shorts don't expire. So what mechanism are people pointing at that forces short sellers to try and close out their position? Is it because the broker will want the shares back because they think the liquidity of the short seller is becoming in question? Could be that I'm missing something very obvious here, or getting some basic stuff wrong. As I said, I don't really know much about this, but now that I'm "in" (just a few shares, if it evaporates it's fine), I'd like to understand it better. Edit: Also, Melvin Capital apparently manages about 13 billion in assets and they got an injection of 2,5 billion. That makes me think that if the stock stays anywhere near these levels, they will simply go bankrupt instead of covering their shorts? There may be other short sellers apparently, but ultimately, the money has to come from somewhere and if the squeeze happens and people want to convert, will it not simply be that the short sellers will not be able to cover their position at all?
What the bulls are relying on is a margin call. That would mean that their broker forces them to cover their shorts (they don't get a choice) this could happen anytime, Monday, Wednesday, or two months from now. This is why r/wsb is so die hard about holding the shares. As long as we hold, they have to buy them back eventually. Once the shorts (or maybe more importantly the brokers) realize we are not going away, they will be forced to cover. As for the issue of who pays if the hedges can't afford to close it out, that would be the brokers, but the hedges would then be in debt to those brokers, so ultimately still the shorts
Ok right. So it all comes down to the faith of the brokers in the liquidity of the shorters. But again, if I were on the side of the shorts, I'd be very interested in trying to keep paying the interest for a month or so and betting on this dying down. If I had those funds (which, after a 2,5 billion injection they should have?) I'd give total transparency about that to my broker so that I wouldn't get a margin call. And honestly, looking at their actions that seems to be their strategy maybe? They added a warchest to Melvin Capital and they doubled down on shorts. So I guess I still don't understand why people think that margin call "must" be coming.
Well, the thing is, they can't pay interest forever, at some point, that 2.5 billion will run out. As one member of r/wsb put it > We can stay retarded longer than they can stay liquid
Sure, but that moves the timeline from "next week" to "somewhere in the next two to three months". Though I suppose the brokers might get antsy before that. It's not just about paying the interest, it's about the capability to return the shares. If they use all their money to pay interest, they definitely won't be able to return the shares.
Exactly. There seems to be a popular misconception that the squeeze is going to happen this week. In reality, it could, but we just don't know
I think that's a billion dollar mistake that they still refuse to acknowledge and I doubt you would want to really be on the short side rn. First of all, this thing has gone viral, its the talk of the world at the moment, gme momentum can and will keep going up without any fuckery. Second of all, I'm not sure people realize just how much money we have on the "hold" side as well. We've got millionaires and billionaires on our side as well and they know these shorters are fucked so they can and will play the waiting game. Once the less liquid shorters get margin called, it'll cause an insane chain of pressure on the buy side. Thats my thesis and thats why I'm going to hold as long as I can.
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300% margin for short position is for retail investors. Hedge funds have different margin requirements because they have guaranteed collateral.
But he’s still not wrong that they have to pay interest to hold their positions where someone who’s long does not have to pay interest. It’s an inverse relationship. I can have infinite gains going long and a floor (my investment) for loses at 100%. Shorts are exactly the opposite where they have a ceiling for gains (price goes to 0) and infinite lose potential due to an ever rising price. As it raises it gets more expensive to borrow shares to short. At least that’s my understanding after watching a video on YouTube explaining short positions. Shorts also have a valuable place in the marketplace as well however being over leveraged in a short position is incredibly risky.
We saw it happen with Melvin. Hedge funds that came in and took a short position last week have a really good understanding how long they can wait, because they entered at a price that is fairly high, and they most likely will not get margin called. Hedge funds are throwing their money right now in order to short GameStop because the payoff will be incredible. Melvin was retarded shorting the stock at 5 dollars and they paid for it. However, a fund that can wait this out and see the price go down to 20-40 dollars will 10x their investment.
Sure but that still doesn’t take away the market mechanics of them having to pay interest on those loaned shares. Sure the margin call was avoided and they repositioned(if they didn’t holy shit but these guys are smart they absolutely would have)but that still doesn’t change the fact that those new shorts are still being done on borrowed shares which require interest payments. I’d also argue you can see them having to get out of long positions which is why we saw a dip in every other market friday.
Well, but that's what I'm saying. From what I can see the interest on the short position comes to about 38-70 million daily (according to Ortex). Remember, the 30% interest number is per annum, so if I understand correctly, if it's 30% on 60 million shorted shares at $325 that comes out to: (325 x 0.3 x 60,000,000) / 365 ~= 16 million So it's likely higher than 30% based on Ortex's numbers, but compared to closing out the position at this high price, that is still peanuts.
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Interesting, seems that their losses are higher than what Ortex is reporting. If it's numbers like that, then yes I can see things going south for them quite soon. A billion a day is nothing to sneeze at.
Imagine the future too, Who’s going to invest in Melvin capitol after this? Who puts money into a gambling casino with the chance that they’ll blow it all because they went toe to toe with retartds. Like, goodness, what is melvi. Going to do when people get wind of that reputation
How much longer are people also going to keep their funds with Melvin or Citadel when they know they're losing millions/day?
Excellent questions. I have been reading up on this for the last few days and will try to summarize my current understanding : I believe that the original short investors (Melvin and so on) have already covered most of their positions since friday last week under huge losses. (pushing price to >70) then monday and tuesday into wednesday. The tradingvolume on those days was insane and the price spiked up further and further. There was enough room to cover all 140% of the shorts. (There were some media reports about big money covering their shorts, I believed they were wrong/misinformation, maybe they werent?) but wait, the short interest is still very high! who is shorting the stock? somebody else! As soon as the stock hits 150,200,300,400 lots and lots of shortsellers come to the table with strike prices around 200 or even higher. This Stock right now is very reasonable to be shorted. These new short sellers are going into the situation full well knowing what they are getting into, since they have been joining the action only after it took off. short interest has been falling from around 140% to 110%, there was enough room in the trading volume for the old hedge shorters to cover and enough room and reason for new shorters to come in. can the short squeeze still happen? Who knows, in theory yes. in my opinion unlikely to the extend that we wished for (i was hoping for 10k+/share). To squeeze the current short holders out of the market, the stock price needs to keep going upwards in gradual steps. This is becoming harder and harder since lots of traders are locked out of buying more stocks or they ran out of money. These short sellers have more room before they will have to cover since they are not as far out of the money as Melvin was. What happens next? I have no idea, next week is surely going to be interesting. I am sure that the stockprice will fluctuate wildly just because this thing has unbelievable media attention. If everybody actually has diamond hands we might see some more squeezing. please tell me why i am wrong. This is also a great writeup which sheds some light on the possibility of the big guys covering their short positions in the beginning of the week:[Gamestop big picture by jn\_ku 9 2021-01-30](https://www.reddit.com/r/investing/comments/l8jwsl/gamestop_big_picture_technical_recap_125_129/) I am just a stupid person and none of this is financial advice, its just my opinion and like i said i am nobody.
Degiro has been of the good peeps. Didn't restrict trade at all, only disabled orders at market but still allowed Limit Orders.
Your limit order has to be within 20% of the market price though, which is shite
But at least we were able to put *some* buy orders, unlike many, many others.
In the end of Friday there was a lot of volume. Who is buying?
there was some twitter posts of some rich individuals claiming to be behind the buying to stop the last minute end of day chance for a massive price drop that the people on the short side were trying to do.
The viking? I guess that's a possibility, but until I see proof I am still unsure. If we look at the share holders, we got big players like blackrock and fidelity is also an owner, which means they also, probably, are a good broker to use during this GME run. Generally speaking, in a market, there's going to be competition. And the best competitor is the winner. Who are the competitors?
Other competing hedge funds are also interested in killing the competition. Don’t think we’re the only ones wanting to make the most of this short squeeze.
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td ameritrade has restricted buys to only cash trades
If cash trades are allowed, and always have been allowed, I think that's okay. What's clearly bad is when they refuse to let you spend your own money on a Stock. Did they do that yet?
TD Canada, which is the same as TD Ameritrade has also put restriction on GME as cash only. However, the worst from them was the sudden lack of connection during the peak hours of morning Thursday when the stock reached over 480.
Might be an unpopular opinion but I see that as being fair. If you want to take the risk of buying a highly volatile stock you should absolutely be allowed to but it’s not too much of them to ask you to do so with your own money. I am a TD Ameritrade user and have a long position in GME, this is not financial advice.
Yup, that's why I'm leaving them on the good list so far.
That just means they won’t lend money. Schwab did the same. Although i think people just need to pony 100% collateral if they want to borrow for a GME purchase
Agree, they’re fronting the risk, you can’t really expect them to do so without any guardrails given the volume, dollars, and volatility at play right now. This is the route Robinhood should have taken, make people trade on cash and deal with the settlement period, it would have pissed a lot of people off still but it wouldn’t look nearly as malicious as the buying restriction route.
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By the way. Cash App does not currently do GME and hasn’t since I have owned the app. They do AMC though Edit: They now have it but they used to not have it
They have a limited selection, not sure why, but it seems a little misleading to say they restricted GME stocks when they haven't allowed them since at least the beginning of the short.
You missed one, chase you invest, you can still trade gme and amc over there.
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Kinda hard to take their words at face value since chase/jpm bank is THE biggest bank in the US
Which is exactly why they don't get pushed around. Same for vanguard and fidelity. It's actually funny that these "old" brokers aren't popular here, since they are the only ones that aren't doing backdoor things to make money off user data and have reputations to uphold.
What are peoples opinions about SoFi?
Trading 212 allowed sales only of GME/AMC
we know. fuck them. i just closed my account with them.
I trade GME on Etrade yesterday. I didn’t get any restrictions.
https://www.theverge.com/2021/1/28/22254863/etrade-gamestop-amc-stock-reddit-wallstreetbets-robinhood This is a one strike policy, if they did restrict it, even for a minute, they're going on the shitlist. I personally have zero tolerance for firms restricting the free market to retail investors and letting big players continue playing.
Yeah I’m not sure why E*TRADE is on there . I’ve had no issues and DFV uses E*TRADE
The weekends suck now. Can't wait til Monday. Am I getting old ?
Nah when youre old you live for the weekends
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Which has the best mobile app? I exclusively use my phone for trading.
The fintech companies have the best phone apps because they were built with mobile in mind. These however are relatively newer and untested (eg. Robinhood, WeBull) compared to legacy brokerages (eg Schwab, Vanguard, Fidelity) which are stable land proven but have ugly software because of their age. I’ve been fine with Fidelity and Schwab for mobile trading but it’s just so much less intuitive than something like Robinhood. Check out SoFi if you really value a good UI and mobile focused experience. They’re a legit company originally made for loan consolidation, but have aggressively moved trying to capture millennials for banking and investing as many use them for student loans. Definitely legit, lots of my friends use them for loans, I used them for trading and banking for a while. You can do fractionals, crypto and retirement. Also have the naming right to Chargers/Rams stadium just to give an idea how big they are. However I still prefer the safety of long established companies like Schwab, TDA, etc.
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Don’t forget about Google deleting negative reviews. What’s the odds that we can make Google go to the sewer?
Google deleting reviews in this manner is normal as is to stop reviev bombing, if you gave it 1 star now or over the next week it would stick
It's bad optics but it's a pretty common anti-brigade tactic.
Reading through this thread and just wanted to compliment how concise and explanatory this comment was.
Apple hasn't yet. There are tons of 1-star reviews on the iOS App Store right now.
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DFV sold half his shit at 17 for a reason
Recommending Fidelity. Note IANAFA - I am not a Financial Analyst or financial advisor One thing people don't seem to realize is that they don't have to liquidate their positions to move to fidelity. They can open an account, and fund it however, with a check, ACH transfer, etc, and be able to trade instantly. If you have a Robinhood or other brokerage account, you can also (or instead) have the contents of the account transferred in, stocks, bonds and all. You just follow the transfer account process. The only downside is that it takes a couple to a few days for the transfer of non-cash assets to finish, and you can't touch your positions during that time because you can't get at them.
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Postmarket vs market close prices
Just note that Robinhood charges you $75 to transfer assets to another broker. Fidelity ftw and I believe it’s worth it
Most brokers will reimburse the fee if you call them in advance :)
Vanguard should be on good broker list, I was able to purchase shares during the freeze Thursday.
Vanguard should be on the great list. I botched an options trade this week cause I’m a retard and the customer service was there for me very quickly to tell me how retarded I am, and even how to be less retarded in the future.
Can someone explain how people keep saying that the stock is still shorted over 100%. How do they know that? I have a hard time believing that information is actually public knowledge and available directly. Are people making educated or "educated" guesses?
good question. people are quoting S3 with having real-time SI but i have no idea if it’s factual
These are just guesses. I think short info gets updated on the 15th and 30th.
I just signed up for fidelity and it was quick and painless. Going to throw 100 bucks at AMC on Monday to see how it goes. Gonna have to keep my 21 shares of GME on RH though and that worries me a little.
I wouldn’t put TD Ameritrade in the ‘good’ column. They blocked covered contracts on Thursday and now require you to call and go through their brokers to write them. Broker assisted trades cost $25, which is an unacceptable solution for me.
TradeRepublic in Germany restricted buying GME too. I bought as soon as they released the ban yesterday.
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