Ok I get it, its a movement they say, but what happens to all those at the top of the share price, what about those people that are throwing in their money because of people saying, its going to go up, short squeeze short squeeze SHORT SQUEEZE, SHOW ME THE MONEY…They get holding the bag is what happens and then they have no one left to get them out.
No matter what, I’m all over the Facebook groups and have a group of friends in groups in different social media platforms and people are buying options and that doesn’t move the stock because as Trey Trades puts it, “you need to actually own shares of the stock to make it move”.
So his ratio is 80/20 and that’s fair, absolutely especially after all the research he puts into his video’s, the guy knows what he’s talking about, that’s for sure.
The thing is though, people don’t really know what they’re doing getting involved in a stock that’s way above its evaluated share price.
When you get into the stock market, you are already at a disadvantage *hence the movement, I get it, but once people have to get into a stock any stock at 50$ thats evaluated at lets say 5$, shouting HODL in groups everywhere and the only way for that person to make money is for them to shout HODL and rely on everyone below them not to get out, is a pyramid; the first ones in benefit the most and get rich the most as the little guy on top if there’s no one left playing they lose out as the ones that created the base benefit the most.
The movement is supposed to tell the big guy to stick it because they prey on the weak and naive because the corporations make the big money, but what about those stuck at the top of this pyramid because in the end, that’s what this is and there’s only one way down as soon as some whales get out to take profits or everyone believes at that moment, its time to get out; there’s only one direction from this point on and its down!
Some would argue, whats the difference between getting into a stock at 3$ when its evaluated at 2.50$, you’re left at the top as there’s were in at 1$. True, but, its the potential for growth factor that comes in to play, the research in the company and its ambitions, the CEO, The board of directors, the mission, vision of the company, the industries Compounded Annual Growth Rate (CAGR), the Company’s CAGR, its financial statements…If the company has any value in a growth sector, there’s a high probability that the stock will surpass the 3$ mark and grow beyond it, but if you’re in at 50$ in a stock that should average around 5$, good luck with that, why waste your time here, just go to a roulette table and bet on red or black at least you won’t be going mad with anxiety, making a ton of others rich with no real atmosphere and fun.
Look at what AMC did, the bosses cashed out money on Thursday 2021-06-10 and lines their pockets with big money and of course helped restore the AMC credit rating but at who’s expense, the little guy that has no clue what they’re doing.
Sure, I don’t mind it, I find it super interesting even, I put in some money, but I know what I’m doing, I’ll take a loss to protect my overall portfolio in these types of plays and then I’ll rebuild it with smarter plays if I had lost out, the fact someone calls me an Ape, Diamond Hands or Paper Hands is of no relevance since I know what stocks I should INVEST my money in and where I should place my day trades; those name calling out others and labeling is psychological manipulation because naturally the vast majority or people want to be diamond hands and want to be a part of the club in normal times, so imagine after a year and more of isolation, they want to be called an Ape, because if you’re an APE, you’re one of the click, but you may be holding the bag.
In my opinion, its better to wait and be in the right company at the right time and that includes companies that are about to be shorted; but only if you’re in their normal averages.