1022
A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock. (www.theverge.com)
submitted 2 years ago by [M, B] to c/technology@lemmy.world
191 comments fedilink hide all child comments
 

A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock.::Reddit seems like a likely candidate for a meme stock. But the actual reaction suggests that r/WallStreetBets isn’t going to send the stock to the moon.

you are viewing a single comment's thread
view the rest of the comments
[–] 283 points 2 years ago (12 children)

Reminder that shorting is a high risk play and you should never make investment decisions out of spite.

  • permalink
  • fedilink
  • source
  • hideshow 24 child comments
    •
  • [–] 231 points 2 years ago (1 child)

    The market can remain irrational longer than you can remain solvent.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 34 points 2 years ago (1 child)

    Holy shit put that on a t-shirt

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 82 points 2 years ago (2 children)
  • permalink
  • fedilink
  • source
  • parent
  • hideshow 4 child comments
    •
  • [–] 91 points 2 years ago (2 children)

    A reminder that the stock market and any kind of high level money market of any kind including digital money .... is a rich man's game where poor are by design destined to lose.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 4 child comments
    •
  • [–] 21 points 2 years ago (2 children)

    This is a gross over simplification. Yes, rich people can have higher risk tolerance, but that doesn't mean people shouldn't be going long on index funds and otherwise safe, low risk investments for retirement with what they can afford to.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 4 child comments
    •
  • [–] 14 points 2 years ago (1 child)

    Yes, rich people can have higher risk tolerance

    It's not just risk tolerance. The very rich can manipulate the market in ways that the poor can't.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 9 points 2 years ago (1 child)

    You don't need to manipulate markets to dollar cost average the S&P500 for 40 years and retire. This is a get rich slow scheme that's worked since the inception of index funds.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 2 points 2 years ago (1 child)

    Yeah, and some rich people may do that. But, other rich people aren't satisfied with the returns of an index fund, so they'll manipulate the markets to get higher returns.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 2 points 2 years ago

    I don't know what you're trying to get at. The original comment stated the stock market is a rich man's game that poor men are designed to lose. I pointed out that anyone with extra income can take advantage of the stock market and not lose. Just because rich people can take advantage of market manipulation doesn't mean poor people have to lose.

  • permalink
  • fedilink
  • source
  • parent
  • [–] 11 points 2 years ago

    And then listen to every asshole yell 'but think of their retirements!!1!' when the stock market shits itself.

    Fuck this system. It's original intent is way long gone, and we should stop pretending it's helping anyone but the rich.

  • permalink
  • fedilink
  • source
  • parent
  • [–] 62 points 2 years ago* (2 children)

    Instructions unclear, purchased Lemmy stock using Amazon gift cards

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 4 child comments
    •
  • [–] 46 points 2 years ago* (2 children)

    ¡Alert! Your Lemmy account may be suspended in 2 days unless you send Google Play gift card codes to me right now!

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 4 child comments
    •
  • [–] 53 points 2 years ago (1 child)

    100%, this is a trap being set for retail investors... not touching this even if I had a 1000ft pole.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 24 points 2 years ago (3 children)

    What if you had a 1001ft pole?

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 6 child comments
    •
  • [–] 37 points 2 years ago (1 child)

    Playing the stock market at all is a form of gambling. You should never gamble money you aren't completely willing to lose.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 19 points 2 years ago (1 child)

    And with shorting there's no upper limit to what you can lose.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [+] -7 points 2 years ago (1 child)

    Not true

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [+] 14 points 2 years ago* (last edited 6 months ago) (3 children)
    [deleted]
  • permalink
  • fedilink
  • source
  • parent
  • hideshow 6 child comments
    •
  • [–] 16 points 2 years ago

    Yeah, if there's a "Superstonk" style event, the shares might jump to $1000 per share.

    Say you shorted 100 shares. If you shorted it at $30, the absolute maximum you could make is just under $30 per share, or $3000. But, if it jumps to $1000 per share, you would lose $970 per share, and owe $97,000.

    Maybe it's not technically possible for there to be "no upper limit" to what you could lose, but you could easily lose many multiples of the maximum possible gain.

  • permalink
  • fedilink
  • source
  • parent
  • [–] 5 points 2 years ago

    No. There are lots of ways to short a stock which just means betting that a stock will fall. If you buy Puts you go short, you can only lose the money you spent on the Puts. What you are talking about is unhedged short selling but that is far from the only method to short a stock.

  • permalink
  • fedilink
  • source
  • parent
  • [–] 10 points 2 years ago (1 child)

    To quote XKCD's "Engineer Syllogism":

    1. I am good with numbers and math.

    2. The stock market is mostly numbers and math.

    3. Therefore, I would be -- wait, where did all my money go?

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 5 points 2 years ago

    It will be about a week until options come out. A put option simulates renting 100 shares of a stock over a time period, and collecting the difference between the strike price you pay for and the lower price if there is one. If the price ends higher, you lose the rent you paid.

  • permalink
  • fedilink
  • source
  • parent