Oh my god! GME is down to $150! It's down to $100! It's down to 30 cents! The hedgies are going to cover all their shorts at that 30cent price point! It's over!
Wrong.
No one is selling at these prices. Sure, maybe a few scared folk who don't know any better. Maybe they trigger a few stop losses. Maybe some margins get called. But it's not enough. Say it with me:
PRICE DOESN'T MATTER
WHAT?!
You heard me. 30cent GME? No problem.
They don't need a low price, they need your shares. If 10 people sell at 30c cents, and that's the only market activity, it's a "30 cent stock" but Melvin only netted ten shares. They are still fucked. They aren't buying 50 million shares at 30c, nor $100, nor $300, and that's their problem. It's an availability issue. Sometimes it's ALSO a price issue (too high for them) but primarily it's the availability.
All the activity driving down the listed share price are illegal ladder attacks (not that legality should be expected at this point, these folk are crooks). Those aren't actual sales though, it's just shares trading hands from hedgie to hedgie. They aren't gobbling up value. These people don't admit defeat, they are neither smart nor humble, they are crooks. They need 50 million+ shares. They need over 100% of the float to sell to them (that 50% float you hear about is accounting shennaigans, ignore it, they are still exposed). You can NOT close that many positions sniping a few shaky handed noobs. We aren't talking about a few shares they need to buy, we're talking about fucking ALL OF THEM.
I'll explain that in a second, but first let me repeat:
PRICE DOESN'T MATTER
So let's say you want to buy 50 million shares, let's look at what shares are being asked for in my hypothetical example market:
# of Shares - Price
x 20 - $0.30c
x 80 - $5
x 400 - $20
x 600 - $40
x 900 - $60
x 2,000 - $100
x 5,000 - $150
x 10,000 - $200
x 30,000 - $300
x 50,000 - $400
x 150,000 - $500
x 1 mil - $1,000
x 15 mil - $5,000
x 30 mil - $69,420
Get it? There are only a few people willing to sell at those low prices. By the time you've bought a quarter million shares (0.5% of what you need to buy) you're back up to the sustained highs. And these are just exaggerations to make a point. A stock price only reflects current trade values, not availability at those prices. If the hedgies are trading their shares back and forth to each other to drive down the price and they have ladder attacked down to a Nickel, that doesn't mean anyone's shares are only worth pocket change, that just means that that is what things are trading at in the moment. There's no volume to buy up at those costs. No one can force you to sell at a Nickel.
Get it?
PRICE DOESN'T MATTER
They need our shares, not a low price. The price does not reflect whether we are 'winning' or not. Their financial reserves indicate that, but there isn't a ticker for that. But be sure, every day the inevitable closes in. Sell out of fear if you like, but you'll just miss out in the end. People like me, as we shore up more funds, snipe these low prices, stealing away shares the hedgies use to ladder and taking shares away from shaky hands and putting them into steady ones.
This isn't financial advice, I just want to make sure people on this sub have the knowledge to not make fools of themselves in casual conversation.
This.
The wanna play around? I have another paycheck to throw at them.
I'll eat fucking cold beans from a can for a while, the sting of their fraudulent election hasn't worn off and I'm still looking for a fight.
Buy only what you're comfortable walking away from and forgetting about.
If you buy so many that you start to worry, it's not good for your health.
Everyone's hands turn to jelly if they are in deep enough.
No one can diamond hand when they are in so deep that they put their child's insulin up as collateral to a pawn broker.
Buy to the point of comfort, don't buy to the point you start to quiver. Your mental health matters too.
*This IS financial advice
That being said, my goodness are these good prices.
If you're comfortable eating beans, like actually doing that, then the risk vs reward at these price points is really hard to pass up. But be sure you're actually comfortable doing it.
But you don't have to go all in, no one does. The phrase, "buy what you're comfortable losing" isn't wise because you might lose it all, it's wise because you need to be comfortable walking away and not worrying about it.
I'm down and am not phased at all. I sleep fine, and my days aren't distracted. It's not just because of how confident I am in the purchase, but because my purchases won't ruin me.
Two weeks ago people need to buy. A week ago people needed to buy. Now all people need to do is hold. That's it. If you have the diamond hands to scoop up some paper handed sells then great.
But don't budget two weeks of eating beans unless you have two weeks of tortillas, sour cream and guac in your budget as well ya dig?
If you're comfortable eating beans, like actually doing that, then the risk vs reward at these price points is really hard to pass up. But be sure you're actually comfortable doing it.
But you don't have to go all in, no one does. The phrase, "buy what you're comfortable losing" isn't wise because you might lose it all, it's wise because you need to be comfortable walking away and not worrying about it.
I'm down and am not phased at all. I sleep fine, and my days aren't distracted. It's not just because of how confident I am in the purchase, but because my purchases won't ruin me.
Two weeks ago people need to buy. A week ago people needed to buy. Now all people need to do is hold. That's it. If you have the diamond hands to scoop up some paper handed sells then great.
But don't budget two weeks of eating beans unless you have two weeks of tortillas, sour cream and guac in your budget as well ya dig?