The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

HOT TOPIC Reddit r/WSB bankrupts Hedge Fund using Robinhood

Accelerate wealth. Build a business that pays freedom. Join more than 70,000 entrepreneurs and register for the Fastlane Entrepreneur forum. Remove ads? Join the INSIDERS.

Brian Fleig

Contributor
Feb 19, 2018
39
42
109
60
New York

csalvato

Legendary Contributor
EPIC CONTRIBUTOR
Read Millionaire Fastlane
Summit Attendee
Speedway Pass
May 5, 2014
2,053
5,918
1,316
36
Rocky Mountain West
No it's not right. I can daytrade all day every day with a cash account. I can day trade 3 times in a 5 day period with a margin account AND I can have as many margin accounts as I am able to fund.
Can you provide an example of what you mean?

In my experience, whenever I trade more than 1x a day on a particular security, I have received the warning that I need 25k in liquidity in that particular brokerage. Been that way on multiple brokerages, so this must be some other approach that I don't know about.
 

Brian Fleig

Contributor
Feb 19, 2018
39
42
109
60
New York
Can you provide an example of what you mean?

In my experience, whenever I trade more than 1x a day on a particular security, I have received the warning that I need 25k in liquidity in that particular brokerage. Been that way on multiple brokerages, so this must be some other approach that I don't know about.
Yes you get a warning but you still get 3 day trades within 5 trading days on a margin account.
 

csalvato

Legendary Contributor
EPIC CONTRIBUTOR
Read Millionaire Fastlane
Summit Attendee
Speedway Pass
May 5, 2014
2,053
5,918
1,316
36
Rocky Mountain West
Yes you get a warning but you still get 3 day trades within 5 trading days on a margin account.
3 day trades within 5 days is not really day trading, though. That's more of an allowance they give you so you don't get trapped into something as an inexperienced investor.

Day traders will be making making dozens (or even hundreds) of buys within a single trading day.
 

Brian Fleig

Contributor
Feb 19, 2018
39
42
109
60
New York
Can you provide an example of what you mean?

In my experience, whenever I trade more than 1x a day on a particular security, I have received the warning that I need 25k in liquidity in that particular brokerage. Been that way on multiple brokerages, so this must be some other approach that I don't know about.
Not sure about other brokers but TD Ameritrade actually shows you how many day trades you have available in their platform Think Or Swim
 

Brian Fleig

Contributor
Feb 19, 2018
39
42
109
60
New York
3 day trades within 5 days is not really day trading, though. That's more of an allowance they give you so you don't get trapped into something as an inexperienced investor.

Day traders will be making making dozens (or even hundreds) of buys within a single trading day.
Small time day traders use cash accounts and/or multiple margin accounts. All that being said though Wall street bets are not day trading they are swing trading
 

socaldude

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jan 10, 2012
1,770
4,076
1,016
San Diego, CA
LOL

Everyone and my friends and family is asking me which stocks they should buy. You know what that means, it’s time to GTFO.:rofl:
You know, the real reasons why a company is investment worthy?

Lol business and economics. What’s that. Lol

Economics=Just print money Investment=Just buy stocks hoping they go up.

:rofl:
 

James Fake

Gold Contributor
Summit Attendee
Speedway Pass
May 4, 2009
1,496
2,222
581
Las Vegas, NV
In addition to my previous reply/post...

I’ll share that I’ve been eye’ing SQQQ and Spy Puts, its more so a matter of waiting until the ideal entry presents itself. As counter intuitive as that sounds while also rooting for GME; it goes hand in hand in a weird way (and not just cause/effect).

After that; the targets are on a return to bigger upside companies (think March replay), while mixing in some (unknown no name rn) sleeper EV companies/supporting tech and innovative streaming/entertainment companies as well.

Calls should be 50-80% discount if things go as planned.
 

biophase

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 25, 2007
7,707
36,299
5,083
Scottsdale, AZ
No, it's right.

It's illegal for a brokerage to allow you to day trade with less than $25,000 (including Robinhood)


Where @kelvinfernandezm was wrong was that it's a requirement to do any trading...which it's not.
I can remember back in 1997 when I was a 9-5er that many co-workers were day trading. Back then, they were just making a ton of trades a day. These accounts didn't even have margins on them. Then one day, the brokers called and halted their accounts because it took 3 days for a trade to settle and their accounts were all so messed up. Once it was all fixed, they were trading again, but they definitely didn't have $25k in their accounts.
 

csalvato

Legendary Contributor
EPIC CONTRIBUTOR
Read Millionaire Fastlane
Summit Attendee
Speedway Pass
May 5, 2014
2,053
5,918
1,316
36
Rocky Mountain West
I can remember back in 1997 when I was a 9-5er that many co-workers were day trading. Back then, they were just making a ton of trades a day. These accounts didn't even have margins on them. Then one day, the brokers called and halted their accounts because it took 3 days for a trade to settle and their accounts were all so messed up. Once it was all fixed, they were trading again, but they definitely didn't have $25k in their accounts.
The law was passed in 2001.

Screen Shot 2021-02-02 at 12.49.29 PM.png
 

theag

Most Aggressive Guy on the Internet on the Planet
EPIC CONTRIBUTOR
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jan 19, 2012
3,772
10,828
2,456
But the good WSB traders are not focused on that much. We’re already ahead..

For instance, most with early GME entries have made more than enough. I hold some at $30 but I honestly don’t care about it, I’ll hold it to do my part and could careless if it goes to zero.

We’re already grouped up making entry (or waiting entry to open up) on the upcoming breakout companies, easy 10 baggers for both mid and long term.

What makes you think that you can identify multiple "easy 10 baggers" when you just missed the 10 bagger on GME?

Or does GME not count, because you "don't care about it" anymore?

Will you care about it again when it goes back to $300+?
 

James Fake

Gold Contributor
Summit Attendee
Speedway Pass
May 4, 2009
1,496
2,222
581
Las Vegas, NV
What makes you think that you can identify multiple "easy 10 baggers" when you just missed the 10 bagger on GME?

Or does GME not count, because you "don't care about it" anymore?

Will you care about it again when it goes back to $300+?

Did I miss it though? LOL

I see you care exclusively about exit price; I care about entry price. The money is always made on the entry.

And to answer your question... Patience LOL. And yes, I can identify 10 baggers pretty consistently, its also a group so its not just exclusively me.


Serious Question: Why are you so angry and grumpy all the time? Seriously. So hostile. Snappy. Poking. Prodding. Always questioning everyone's ability. Ravoli, is that you playa?
 
Last edited:

theag

Most Aggressive Guy on the Internet on the Planet
EPIC CONTRIBUTOR
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jan 19, 2012
3,772
10,828
2,456
Did I miss it though? LOL
Yes, you did.

The money is always made on the entry.
Yes and you entered GME pretty late at $30.

And yes, I can identify 10 baggers pretty consistently
Why are you still bothering with low amount trades like doubling the $15k at $80 then?

Something doesn't add up here.

Serious Question: Why are you so angry and grumpy all the time? Seriously. So hostile. Snappy. Poking. Prodding. Always questioning everyone's ability. Ravoli, is that you playa?
I'm not angry, just amused :blush:
 

BizyDad

I used to be a banker but I lost interest...
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Oct 7, 2019
966
3,249
744
Phoenix AZ
@theag No, you're definitely angry. Your assumptions in every reply are definitely incorrect as well. Some people live just to argue. I don't have much time these days, so I am going to bow out of this one.
Angry or not, he's pretty upfront about it, right?

1612300580692.png :rofl:
 

ZF Lee

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jul 27, 2016
2,509
4,416
1,036
22
Malaysia
LOL

Everyone and my friends and family is asking me which stocks they should buy. You know what that means, it’s time to GTFO.:rofl:
Same here!

Now after I joined r/bursabets (my country's local version of r/WSB), I'm even getting Reddit PMs from strangers asking me whether their stock picks were good, or whether they should hold or cut-loss or whatever.

And when I look into the companies they picked...I just see shitty companies bleeding cash with horrible profit retention-not to mention industries I never like buying into (like chemicals) and entries right when the chart shows an obvious downtrend.

And I haven't even gotten into the financials yet to check inner details like cashflow...

Some of them even bought call warrants on those loser companies...and the gearing was eating them alive.

Most folks are better off using their cash to fund small businesses or dump it into a mutual fund (Slowlane, but better than YOLO), rather than throwing $$$ into a travesty that needs oodles of research they won't do.

Seems like people are starting to lose money.

View: https://twitter.com/stoolpresidente/status/1356618475234557956?s=20


This guy bought $1M worth of GME yesterday at 260 and lost around half of it in 24 hours, with it currently trading at 130:

https://www.reddit.com/r/wallstreetbets/comments/la6w8q View: https://www.reddit.com/r/wallstreetbets/comments/la6w8q/just_bought_1mm_worth_of_gme_my_profits_from/

Can't wait to see this whole f*cking house of cards crash and burn. And I don't mean just the meme stocks.
On the bright side, at least we'll have some loss porn to see on WSB.
It was painful to keep seeing GME gains all day long.
At least you can learn a few lessons from loss porn (typically).

I'm keen to see more SLV posts though. Those who followed the Agora newsletter cartel's calls to get silver MONTHS before this are gonna eat good today.

If you want to lose an hour down a rabbit hole, I'd suggest going to that subreddit and sorting by "top" over the past 1-2 days. The amount of research they have done to call out these funds is incredible.

Mark Cuban is actually doing an AMA on the sub right now as we speak (9:30 EST)
Fellow Shark Tank partner Kevin O'Leary also had some nuggets to drop:

Namely:
-Hedge your bets
-day trading is NOT investing (duh)
-Don't risk your nest egg (can also apply even for funding Fastlane businesses)
-Set money aside for retirement

Unfortunately, that article starts pimping Slowlane mutual funds and indices as a 'safer' alternative to stock-picking-so I can't help but imagine how f*cking confused people will feel when they see the GME travesty on one end, yet see conventional finance pimping their wares on the other end.
 

Hplusm123

New Contributor
Mar 14, 2018
2
4
13
31
Netherlands
Same here!

Now after I joined r/bursabets (my country's local version of r/WSB), I'm even getting Reddit PMs from strangers asking me whether their stock picks were good, or whether they should hold or cut-loss or whatever.

And when I look into the companies they picked...I just see shitty companies bleeding cash with horrible profit retention-not to mention industries I never like buying into (like chemicals) and entries right when the chart shows an obvious downtrend.

And I haven't even gotten into the financials yet to check inner details like cashflow...

Some of them even bought call warrants on those loser companies...and the gearing was eating them alive.

Most folks are better off using their cash to fund small businesses or dump it into a mutual fund (Slowlane, but better than YOLO), rather than throwing $$$ into a travesty that needs oodles of research they won't do.


On the bright side, at least we'll have some loss porn to see on WSB.
It was painful to keep seeing GME gains all day long.
At least you can learn a few lessons from loss porn (typically).

I'm keen to see more SLV posts though. Those who followed the Agora newsletter cartel's calls to get silver MONTHS before this are gonna eat good today.


Fellow Shark Tank partner Kevin O'Leary also had some nuggets to drop:

Namely:
-Hedge your bets
-day trading is NOT investing (duh)
-Don't risk your nest egg (can also apply even for funding Fastlane businesses)
-Set money aside for retirement

Unfortunately, that article starts pimping Slowlane mutual funds and indices as a 'safer' alternative to stock-picking-so I can't help but imagine how f*cking confused people will feel when they see the GME travesty on one end, yet see conventional finance pimping their wares on the other end.
Honestly, investing/trading is totally not my field at all. I make my cash/revenue in other ways, I opened up a broker account a couple days ago and got 150 shares at 250 dollars. First trade ever, biggest gamble off my life completely bought into the hype and lost all rationale. Contemplating whether I should cut my losses or keep holding the more I am reading, the more I realise what kind of shit show it is. I read too much of the “it won’t happen again ever” and just lost rationale, geeze I’ve made big mistakes but this has to top all of them. We live and learn.
 

Ing

Silver Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jun 8, 2019
896
885
267
55
Bavaria
I do a bit of stocks for a long time and there is a small win over the time.
But me too lost the logical thinking with that shit.
GME and AMC cost me some k last 2 days.
What do I learn: do your own DD!

Soetimes I love to buy a shitty pennystock like lottery. And I ll do that rather than listen to a reddit advice buying a stock after an extreme shortsqueezze at a still extreme prize.

I bought one 20 years ago only because it was cheap for 500000 x 0.005 and forgot about it. About 10 years ago I remembered and sold it for 0.01. Not proud, because in the 10 years it was at over 10 for more than a year.
What I learned about it : care your things!
 

Kelvin Fernandez

Some Profound Quote Goes Here
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jan 26, 2016
714
1,418
441
29
Rice, Texas
Honestly, investing/trading is totally not my field at all. I make my cash/revenue in other ways, I opened up a broker account a couple days ago and got 150 shares at 250 dollars. First trade ever, biggest gamble off my life completely bought into the hype and lost all rationale. Contemplating whether I should cut my losses or keep holding the more I am reading, the more I realise what kind of shit show it is. I read too much of the “it won’t happen again ever” and just lost rationale, geeze I’ve made big mistakes but this has to top all of them. We live and learn.
You bought GME shares?
 

Kevin88660

Gold Contributor
I've Read UNSCRIPTED
Speedway Pass
Feb 8, 2019
1,496
1,714
474
Singapore
9 times out of 10 this is great advice, i just like to look a bit into the nuances of the situation. It looks like a situation that I'd have to buy the dip and assume other redditors will too, and then sell shortly after, making maybe a quick buck with not great gains and lots of potential that we haven't even seen the bottom yet. That dosen't really help their cause either, I'd just be out for myself and a greedy quick buck with the potenital to get slaughtered. Take this as a sign if anything, Mark Cuban supports WSB's movement but he openly says he dosen't own any GME stock.

It's all well and good to send a message, but doing what's best for you at the end of the day is more important and I prefer to send a message that doesn't also follow with me lighting my money on fire.
I think it is about patience and risk management in the gme trade. Let us look at the facts that we know are likely to be true.

Gme trade is a short covering trade. There is no value in long term holding.
There is still over 100 percent short interest to be covered. There are still new shorts entering while old shorts are leaving. There are still new retail piling in.

To me if you play on the long side and build your position as price do down (buy the dip) it is a trade that is unlikely to lose. No matter how strong hands the shorts are they have to cover (either at a good price or a bad price).

The best case for the shorts is when gme goes really rock bottom and then prices starts to fly on a short covering rally.

So what is almost likely to be true is that even if gme price will be zero one day it must go to “infinity” before it goes to zero. Because when retail interest wanes when the stock is back to 20 dollar per shares there is still insufficient liquidity for institutional shorts to cover. When billion dollar shorts try to exist on a small market it is just waiting for an explosion.

Why did Mervin capital ask for billion dollar capital injection? To hold the shorts positions uncovered when challenged with increasing margin requirement.

If I am Mervin Capital I will hold emergency meeting with other hedge funds holding the same hot potato of gme shorts and swear that no betraying of each other (cover in advance) until price hits rock bottom.

This is more “physics” than finance.

This is not counting institutional long who are playing on the same side with wsb.

So the only way for a bull to lose money is to buy at 300 and sell at 80 and declare wsb a “skem”.

Keep your cost of buying low while accumulating your chips, sell a bit on the way up and buy a bit on the way down. Wait for the final mega short covering escape to sell all your chips. That is how I am going to play. With 90 dollars it is a good place to accumulate the chips while price is on the way down.

For my thesis to be invalidated, Mervin capital must convince other funds holding the same bags must collude to do two things

1) Not to cover shorts now and patiently wait for retail interest to wane.

2) When the price go rock bottom at 20 dollar per share. Do not rush to exit. (Do not betray each other please!) Everyone is assigned a quota of monthly shorts to cover.

That itself sounds like an incredible tale.
 
Last edited:

NCNY

Contributor
Read Millionaire Fastlane
Mar 26, 2019
40
93
114
Didn't read whole thread maybe someone answered such comments already.
If not:
@ kevin - nice trick! Following your logic its perfectly legal to convince someone to commit crime by just by talking to them. Its just "talk".
You're shifting definitions.

And for you NCNY - you seem to be kind of revolutionist, same as those who raided Capitol.
Do you know that telling other to do justice on their own or doing justice on your own is a crime? Probably federal one.
You might have all arguments why you should do this.
But its still a crime.
Want to try?
How about this:
if you had really good reason, you know, the one that you sob so about,
guess what judge would tell you and do.

Do you need time to think?

Do you really think he would say: "Ok, you're such a just man, set him free"
You might be a bit confused right now, so i will tell you what he would do.
Instead of sending you to prison for 16 years he would send you there for 15 years.

If he would have a good day.

Something tells me that you are a type of a person who would find it a great bargain.
Is buying a stock a crime? what about all the "analysts"? cnbc? financial newsletters that constantly recommend stocks?

I dont care about that GME movement, I bought at $99, sold at $360 in 2 days, the ones who didnt sell after the buying restriction fiasco will be left holding the bags. I care about making money, not about being a part of the "movement"
You are probaly an employee at Melvin Capital who lost 50% of their AUM in one month.
 
Last edited:

Sponsored Offers

  • Sticky
MARKETPLACE NEW: The Best School for Going Fastlane (Now open for summer enrollment)
Hi Guys! Just wanted to chime in and say that I am a part of Fox's Web School program. Though I...
MARKETPLACE Fox Web School "Legend" Group Coaching Program 2021
Any update? Hey bud! When I can squeeze out the time to work, it's been going pretty well...
MARKETPLACE Not sure how to start? This free book will teach you how to build a successful web design business
Hi Fox. Starting the book and got through the introduction. Had a conversation with Andy Black...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Chris is super sharp and is aware of many facets of entrepreneurship and can help get your...
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
This month's promo code is MINDCONTROL Those who are subscribed to my new Youtube channel will...
  • Sticky
MARKETPLACE Entrepreneur's Toolbox: Company Formation, Virtual Mailbox, Registered Agent, Remote Online Notary
Appreciating the transparency and lack of hidden fees. The website is very up-front and user...
Introducing MJ's Personal Unscripted Network, Join Now for FREE!
Any chance to make it available outside of US? It has been available outside of the US on...

Forum Sponsor

Learn Fastlane Business Skills & Get Profitable Within 30 Days...

Get Started Now

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom