Can someone explain what has to happen for the short sellers to be forced to buy all available shares which in turn makes the price of the stock “Skyrocket” or “Go to the moon”? It is still confusing to me when it might occur.
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In my opinion GME is no longer in play.
Way back when, a trading/investment sub reddit saw a mass shorting of GME by looking at volume purchases on the down side. They spread the news and started buying like crazy to fuck over the institutions trying to short GME. That is called a short squeeze, where small traders in mass keep buying, forcing the stock price up, which forces the leveraged contracts on the down side to buy at a higher price than their purchase price to mitigate extraordinary losses, which also raises the stock price.
Then the institutions, thinking it was over, tried it again and were caught a second time by masses of small traders fucking them over. It is done and over with IMO.
GME is no longer in play by big investment houses because they lost twice and they know everyone is watching. So they take their money and will play with some other company.
At this point, keeping GME is an act of faith in a religion that is dead IMO. GME will not see $24 a share again, at least not without systemic changes to monetary policy, and US oil production being unleashed, which is not going to happen under Biden.
You may be right but I do not invest and hold, I trade for short term gains, in and out like the wind.
I cannot fathom holding a position for months on end on sheer faith. I can roll that same money over a hundred times sniping profits, while the faithful wait for Moses to part the Red Sea for a third time.
IMO long term investments, in this climate, are far more risky than sniping small gains a hundred times and getting your money back out.
Edit: I would not buy anything Kramer recommends either. But that's just me.
Would you recommend a newb to buy and hold as a sound investment?
Thanks for the info.