I noticed something last night (see below) and just wanted to throw it out there and see if others see it too / agreeā¦ and finally whatās your thoughts?
I donāt typically hold many penny stocks, spacs or hype stocks but I have noticed the ones that I do own their price has been inversely proportional to GME stock, so where GME has gone up these stocks have gone down and it made me think, are a lot of the retail traders now selling penny stocks in order to buy GME stock which is causing this or is it just coincidence?
Itāa not only that. Hedge fund manager have to sell their existing positions to cover GME and other shorts as they have stock as collateral. Some say thatās why the market might be down.
Whether the stock is GameStop or AMC, the pattern is similar and played out bluntly on Wednesday morning. A group of small-scale investors communicating through electronic platforms identify and embrace small-cap and heavily shorted stocks. The resulting price volatility gives way to an enormous breakout on the upside. As more investors pile on, short sellers face higher margin calls, with some forced to cover their shorts and others going further and ādegrossingā their positions ā reducing both shorts and longs concurrently. In turn, this leads to the sale of more liquid stocks, putting pressure on the broader market indexes. As an illustration, this was the price configuration some 30 minutes into Wednesdayās highly volatile trading session: GameStop up 93%, AMC up 217% and the S&P 500 index down 1.7%.
I have started to do the same, I plan to drop some cash in each day this week as I think it will go lower and lower the more GME pulls people away!
My thoughts are I wonder if its going to get worse if people start then pilling into AMC, NOK and BB hoping they get the same crazy returns as GME or if this has already happenedā¦ I know its happened or happening with AMC currently!
I read an argument somewhere, perhaps on these forums or on twitter, that it could be either due to retail investors selling stocks to fund GME/AMC buys and/or it could be funds needing to sell stock to fund their short positions/losses. No idea but yes lots of stocks down I think linked whether sentiment or actual reasons.
It is realy awfull that they let you buy on the pro accounts. But we retail āādumbāā invenstors are not qualified becouse of the risk, we see on what side you playing t212.
To upgrade your account to a Pro you will have to meet at least 2 out of the 3 criteria:
You have traded with an average of 10 times in each of the last 4 quarters on CFD or Forex in significant size with Trading 212 and/or other providers.
You hold an investment portfolio ( including cash savings and financial instruments (exceeding 500 000 EURO)
You have worked for at least 1 year in the financial sector, in a position that has given you knowledge of CFD trading.
Surprisingly I actually can meet two of the criteria, does it cost to go premium? Sure I remember reading somewhere that only retail traders get free trades
Also now they have locked everyone out of GME and AMC does this mean NOK and BB are the next to explode!
averaging down is always better than averaging up
