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Stock Trading 101
=================
| Author | Source |
| :-------------: |:-------------:|
| [u/graiz](https://www.reddit.com/user/graiz/) | [Reddit](https://www.reddit.com/r/stocks/comments/lnw3w5/stock_trading_101/) |
---
[Advice](https://www.reddit.com/r/stocks/search?q=flair_name%3A%22Advice%22&restrict_sr=1)
I've been trading about 20 years and while I'm "not a financial advisor" there are a lot of basics that people just aren't doing.
The influx of investors jumping into GameStop has been fun for some, painful for others. I'm going to outline some best practices for making money in the market year over year.
1\. Never invest in something that you don't understand.\
GME was the latest example but I've seen people do the same thing with Calls, Puts, Shorts and other more exotic trading mechanics. If you don't understand something don't invest in it... assume that there's someone who does understand it and will trade on their deeper knowledge.
2\. Trade in the long-term.\
Your ideal positions will be in companies where you're betting on their 3-5 year trajectory. The markets have a ton of daily/monthly volatility but if you're taking a longer-term view, you'll have many more wins than losses. Long-term trading is also far more favorable in terms of taxes. This can give you an instant 20-30% advantage over a swing/day-trader. Translation... You're not gaining or losing money every day... you only gain or lose when you sell. Your potential is going up or down but it's just potential.
3\. Care about the companies you're investing in.\
Investing is both a way to make money but it's also a way to support companies that you believe in. It's more fun to own a stock of a company that's doing something great than simply a company you think is trending on reddit. It also incentivizes you to read their financials, their news releases and makes you knowledgable for when to sell if you start seeing long-term trends that don't look good. I love talking about the products of the stocks I own because I tend to like them both.
4\. Do your research.\
If you're going to own an individual stocks then do your research. Ideally in a field or area that's tied to something you already know a lot about. Some people know a lot about sports, others know a lot about travel, or science, or cars. Lean into the sectors that you're interested in and do your research. Each sector has winners and if you're deeper in one sector, you'll be more capable of spotting winners.
5\. Zoom in and Out of the Chart\
Stocks tend to follow macro-trends. If you're buying or selling you need to understand the last few years to get a sense of what is likely to happen. Companies tend to have inertia. If they lift 10% yearly, they have some inertia to keep doing that. If they stay flat or go down... they have inertia to continue. Look for changes that can alter that trajectory. If you can spot these inflection points, there's a lot of potential to outperform. Sometimes these inflection points are external (COVID/Election) sometimes they are internal (new CEO, new product, new direction), your research of the sector (4) can often give you an advantage when thinking long-term (1) over people who are zoomed in. Remember to think long-term.
6\. Don't invest money that you can't afford to lose it.\
If you invest stocks long enough you'll have bad days... really bad days but that's part of the market. If it stresses you out... Don't do it. That being said, a disciplined and long term investing approach can give you a lot of financial freedom... and it can be a lot of fun.

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Young apes need to understand the fundamentals. For all of you that bough GME recently, please have a quick read and don't hesitate to ask questions. Obligatory 🚀🚀🚀
=======================================================================================================================================================================
| Author | Source |
| :-------------: |:-------------:|
| [u/karamster](https://www.reddit.com/user/karamster/) | [Reddit](https://www.reddit.com/r/GME/comments/md0bsl/young_apes_need_to_understand_the_fundamentals/) |
---
[Discussion](https://www.reddit.com/r/GME/search?q=flair_name%3A%22Discussion%22&restrict_sr=1)
List of fundamentals
1- The price doesn't matter
This is not value investing, it's a short squeeze. I read a post saying 175$ is the floor. This is in line with the revised price target from some analyst. Don't get me wrong, it's a huge upgrade from the previous price target of 10$ per share. But this is in no way the floor. the floor, last I checked, was in the millions. PER SHARE. I will explain further below. Also note that after the squeeze, GME will become an excellent value investment as the transformation of the company is not yet priced in.
2- HODL
This means hold. In non-ape, it means buy the stock and ignore it until we're somewhere in outer-space. The only thing required for the short squeeze to happen is for apes to buy and hold. Repeat as much as you can. Do not day trade, as this negatively affects the rocket launch. Do not buy options as this gives away your positions to market makers like Citadel (our opponent).
3- Do not post your positions
Rookie mistake, we all did it on WSB in the early days. We soon found out that Hedge Funds use algorithms to scrape reddit for all relevant information on our positions. They, on the other hand, do not have to disclose their positions, thus giving them a huge advantage. The less information (about your positions) you post online, the better it is.
4- Do not set sell limits
Market makers have access to this information, they buy it from various trading platforms and you better believe they use it against you. They manipulate the price to trigger sell limits and take your shares away from you. See item 2 above: you need to hold as long as it takes.
5- Do not set dates
I have been guilty myself of setting dates, and this only results in disappointment for myself as well as other apes that read my posts. All we need to do is wait. It costs us absolutely nothing. The squeeze will happen, it is inevitable. Shorts must cover. They have shorted more that 100% of the float. This fact was explicitly written in GME's annual report (10-K).
6- Get yourself some wrinkles
Some of us have been holding for months. I personally bought in in January right before the first mini-squeeze. Smart apes have been unleashing god-tier DD (Due Diligence) at a constant rate from the start, and we pick up more and more smart apes along the way. Do yourself a favor and read the DD.
[DUE DILIGENCE COMPILATION](https://www.reddit.com/r/GME/comments/lj1wqv/a_comprehensive_compilation_of_all_due_diligence/)
7- Exit strategy
This is a touchy subject, as the floor gets constantly raised, it is difficult to determine a dollar target for when to sell. After you read the DD, you will understand the mechanics of an infinity squeeze. In short (hehe👀), the price per share will go to infinity as demand is bigger than supply by an extremely wide margin. Last number may have been around 900%, but we do not know for sure. What we do know is that they are desperate for us to sell our shares, and that is why they are manipulating the price in such a blatant way. I will refer you to an excellent DD about exit strategy by the wrinkly-brained [u/WardenElite](https://www.reddit.com/user/WardenElite/) : [Exit Strategy DD: A comprehensive guide to maximizing your gains during the GME short squeeze. Advice from a day and swing trader.](https://www.reddit.com/r/GME/comments/m073v6/exit_strategy_dd_a_comprehensive_guide_to/)
I am copy/pasting the TLDR:
> TLDR; Selling early is bad. Sell on the way down. Look out for triangle patterns and understand how to trade them! Don't sell everything at once, scale out slowly. Try your best to time the peak and know that a telltale sign that you are near the peak is a huge green candle stick before reversing. The peak is not symmetric! The price won't drop immediately back to 40; it should bounce a few times!
basically hold, and the more of us hold, the higher the price gets since we control the supply.
8- Be excellent!
I will repeat what [u/Rensole](https://www.reddit.com/u/Rensole/) says at the end of every one of his daily updates: be kind to each other. In recent days, I have been called a shill on multiple occasions, and I know people are on edge. Shills are definitely among us. Before accusing other apes, look into their post history and their account age. Instead of accusing or telling somebody off, report them to mods who will look into it.
9- Do not lend out your shares
Unbeknown to know, Hedge funds can use your shares for shorting. You need to make sure to have your shares in a cash account, and not in a margin account. Contact your broker to insure that your shares are not being loaned.
This is definitely not financial advice, you do you. This is my personal opinion on how to achieve maximum tendyness.
Apes together strong. See you on the moon you beautiful apes.
💎🙌🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
Edit: Thank you for the awards, plz use your money for GME instead! Also added item 9, it's an important one.

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GameStop Glossary
=================
| Author | Source |
| :----: | :----: |
| [u/dexter_analyst](https://www.reddit.com/user/dexter_analyst/) | [Reddit](https://www.reddit.com/r/GME/comments/mvbjmk/gamestop_glossary/) |
---
[🔬 DD 📊](https://www.reddit.com/r/GME/search?q=flair_name%3A%22%F0%9F%94%AC%20DD%20%F0%9F%93%8A%22&restrict_sr=1)
I've seen a lot of confusion over terms found in some of the DDs, etc. Feel free to leave suggestions, but this should be a good introductory glossary for people that have close to no understanding of the financial (or other) terms.
- 🚀🚀🚀🚀🚀 - Apes being excited about their metaphorical mode of financial transportation to space.
- After hours (AH) - After market hours. US markets are generally open Monday through Friday from 9:30 AM to 4PM Eastern Time Zone. Some trading days have an early close and some trading days don't happen on account of holidays.
- All time high (ATH) - The highest price or volume on record for a given security.
- Arbitrage - In the economic-theoretical sense, any time there is an opportunity to exploit price differences for profit. More specifically in a market sense, used to describe buying in one market and selling in another or buying and selling very quickly at small price differences.
- Assets under management (AUM) - Similar to net worth except for financial institutions. The approximate value of their positions and cash. There are different categories of assets under management.
- Bear market - When market conditions produce prolonged and/or substantial declines.
- Bearish - A belief that the value of a thing will fall. i.e. I am bearish on SPY.
- Beta - A measurement of how a stock performs against the market in general (the S&P 500 for the most part).
- Bloomberg Terminal - A reasonably expensive piece of software that gives you a huge amount of information about the market and the securities in it. Sometimes simply called "a terminal."
- Board of directors - Often referred to as "the board." Required for public companies (i.e. companies with stock tickers). The board is generally supposed to be a kind of independent entity that looks out for shareholders, sets policy for how the company operates, and holds company officials to account.
- Bollinger bands - A technical indicator that emphasizes boundaries for price movements. [Learn more here](https://en.wikipedia.org/wiki/Bollinger_Bands).
- Bonds - A debt security that pays interest.
- Buffett indicator - A technical indicator that looks at stock valuations. [Learn more here](https://en.wikipedia.org/wiki/Buffett_indicator).
- Bull market - When market conditions produce rising prices or are expected to produce rising prices.
- Bull run - Indicates that a security had a substantial increase.
- Bullish - A belief that the value of a thing will rise. i.e. I am bullish on GME.
- C-suite - Common term for the executives of a company. CEO, CFO, CTO, etc. The term tends to refer to all of them unless a qualifier is present like "most of the C-suite."
- Call - An options contract that gives the buyer of the contract the ability to purchase 100 shares of a given underlying asset for a specified price before a given expiration. A call can be referred to as "deep" if its strike price is far away from the current underlying price.
- Cash - Value stored in currency as opposed to positions.
- Catch a bid - A phrase used when a price substantially increases.
- Chart - A visual representation of stock pricing and volume.
- Circuit breaker - Put in place to interrupt price changing momentum and make sure that information is properly disseminated throughout the market when big moves happen. Could apply to the entire market or specific securities.
- Clearing/clearance - The resolution of a settlement process resulting in a successful exchange.
- Collateral - Assets or cash provided to a lender to give them an acceptable risk exposure profile.
- Consolidation - Periods of time where the price of a security bounces around between a rough high and a rough low.
- Covering - The act of buying back shares that have been short sold.
- Cryptocurrency - Also called "crypto" by godless apes. Virtual coins that tend to have public ledgers (i.e. blockchains) for transaction integrity. Almost all of them are deflationary by design - i.e. there's a limited supply within a particular cryptocurrency and smaller and smaller fractions of that pool are traded over time. Many of them use a system called [proof of work](https://en.wikipedia.org/wiki/Proof_of_work) which is how the coins are "minted" into existence.
- Dark pool - A private exchange that is allegedly designed to allow large trades that do not affect the market price of a security as a result of bookkeeping share transfers.
- Day trading/trader - Trading on an intraday basis, i.e. purchasing or selling positions and then performing the converse operation generally within a day.
- Deep option - An options contract where the strike price is very far away from the current underlying price.
- Derivative - A position that derives its value from something else. For example, options are derivatives of their underlying assets.
- Depository Trust and Clearing Corporation (DTCC) - A self-regulatory organization that handles the backend of trade settlements. [Learn more here](https://www.investopedia.com/terms/d/dtcc.asp).
- Diamond hands - Being rational about your holdings and not allowing common emotional biases to dictate your entries or exits. Specifically holding regardless of gains or losses.
- Dividends - Some securities will occasionally pulse profits per share out to investors directly.
- Due diligence (DD) - The important stuff. Information and data organized in a meaningful way to support a conclusion.
- Elliot waves - A technical indicator that characterizes price movements based on how price movements typically occur. [More information here](https://elliottwave-forecast.com/elliott-wave-theory/).
- Exchange-traded fund (ETF) - A type of mutual fund that is bought or sold on exchanges throughout the day. Most of them are index funds.
- Exit - Closing a position. An exit strategy is a plan about when and how to close a position.
- Exposure - The quantity of currency that was put at risk by opening positions.
- Failure to deliver (FTD) - A failure to produce a share for settlement within the standard settlement timeframe.
- Fear, uncertainty, and doubt (FUD) - Fairly self-explanatory once the acronym is expanded.
- Financials - Earnings reports and balance sheets. Used to make a fundamental case for the business.
- Float - The number of shares available for public trading as opposed to restricted stock or stock held by company insiders.
- Front-running - A practice where knowledge of a transaction taking place allows the party with this non-public knowledge to profit from the transaction. Typically this is done by brokerages or market makers.
- Fundamental investing/trading - Investing or trading on the basis of balance sheets, earnings reports, sector information, and general financial environment information.
- Gamma squeeze - When hedging against an option causes a chain reaction and the price spikes or plummets. For example, suppose an XYZ $10 call has been sold naked when XYZ's price is $4. Then someone buys calls for $5, $6, $7, $8, and $9. The $5 one likely requires all the shares to be purchased as a hedge, driving up the price. Which then increases the amount of shares needed to hedge for the $6, and so on.
- Hedge fund (HF) - A type of pooled investment fund that actively manages positions in an attempt to make a profit. They tend to use complex trading, portfolio construction, and risk management techniques.
- Hedging - Opening positions that will mitigate losses for your primary guesses about asset price direction. For example, if you buy 5 XYZ $8 calls and XYZ's price is $6, you might also open 3 XYZ $3 puts. This would help reduce your losses in the event that the price goes against you and is a relatively cheap so it doesn't drag very hard on your call gains if it goes correctly.
- Hold on for dear life (HODL) - The mating cry of the ape.
- Implied volatility (IV) - An options contract implies a certain amount of volatility because the strike price and underlying asset price differ, so there must be some probability of the asset price matching the strike price. When the IV reduces substantially, this is referred to as an IV crush.
- In the money (ITM) - An options contract where the underlying asset price has reached the strike price. Can be referred to as a "deep" option which means it's far away from the current underlying price.
- Index fund - A type of mutual fund that holds the same securities in the same proportions as a specific stock market or bond index. Most exchange-traded funds are index funds.
- Insider - A slightly overloaded term. Company insiders are company employees that have filing requirements for transfer of their stock. Insider trading is on the basis of privileged knowledge. For example, before an event is public knowledge, the persons that know about the event trade on the basis of information they have that is not public.
- Interest - There are numerous financial uses of the term, but the one you'll frequently find in use here is "open interest" which indicates how many of a particular kind of position are being carried from day to day.
- Investing - Generally characterized by long-term (1 year or more) holding periods for positions.
- Leverage - How much money moves in relation to some base amount. A leverage of 4-to-1, for example, means that every increase of $1 results in $4 and every decrease of $1 results in a $4 loss.
- Limit order - An order type that expresses a desire to exchange a security at a specific price or better.
- Liquidation - When positions are closed, usually by force of margin call. Usually large positions and usually liquidated quickly, causing very large changes in price.
- Liquidity - The property of being able to be exchanged for cash quickly. More liquid securities can be exchanged quickly for cash and less liquid securities might have delays. If there is a liquidity problem with an entity, you might not be able to get cash from an entity.
- Long - Indicates a bullish strategy such as buying calls, selling puts, buying and holding stock, etc. The belief is that the value will go up.
- Mainstream media (MSM) - Collectively, the media that a regular person might view. Television news channels, newspapers, magazines, etc. Generally they're recognizable household names.
- Margin account - Essentially an account that gives you temporary loans to increase your ability to take advantage of market conditions.
- Margin call - When a financial institution demands additional collateral to maintain a lower risk exposure profile. Also a movie that dramatically depicts something like the 2008 financial crisis from the perspective of a company that is overleveraged.
- Max pain - The price at which the largest number of option holders will suffer financial losses at expiration.
- Mother of all short squeezes (MOASS) - It's the big one. See short squeeze.
- Moving average convergence/divergence (MACD) - A technical indicator that emphasizes changes in pricing trends. [More information here](https://en.wikipedia.org/wiki/MACD).
- Mutual fund - A security that allocates its funds to different underlying securities in a proportion. Exchange-traded funds are a type of mutual fund. Buying a mutual fund is like buying a portfolio. They tend to be designed to diversify holdings and reduce risk for the holder. They are bought or sold based on their price at the day's end.
- Naked - A modifier for options or short selling that indicates that the shares don't currently exist as allocated by the position. So a naked call seller would not have any of the shares necessary to satisfy the call contract and is depending on the call to expire out of the money. If the contract becomes in the money and exercised, the naked call seller must purchase the shares to make good on the contract.
- Open interest - Indicates how many of a particular kind of position are being carried from day to day.
- Option - A contact that allows the buying or selling of 100 shares of an underlying asset for a specified price before an expiration. Options have an extrinsic value (commonly known as decay or time value) and potentially intrinsic value (strike price difference with underlying asset price). The seller of an option is also called the writer.
- Out of the money (OTM) - An options contract where the underlying asset price has not reached the strike price. Can be referred to as a "deep" option which means it's far away from the current underlying price.
- Over the counter (OTC) - Used to describe transactions done on dark pools. Honestly should be "under the counter" instead.
- Paper hands - Allowing your emotions to dictate your investment or trading behavior. Specifically not holding through gains and losses.
- Payment for order flow (PFOF) - A compensation scheme between brokerages and market makers where retail investor orders get routed through the market makers. This is opposed to the retail investor paying the brokerage a commission on trades.
- Penny stocks - Stocks that generally trade at less than $1/share.
- Portfolio - A collection of positions.
- Position - A purchased or borrowed stake of an asset or derivative.
- Postmarket - After market hours. US markets are generally open Monday through Friday from 9:30 AM to 4PM Eastern Time Zone. Some trading days have an early close and some trading days don't happen on account of holidays.
- Premarket - Before market hours. US markets are generally open Monday through Friday from 9:30 AM to 4PM Eastern Time Zone. Some trading days have an early close and some trading days don't happen on account of holidays.
- Price action - The way a price moves over time.
- Pump and dump - The technical meaning of this term is a scheme designed to temporarily boost the price of a security through false, misleading, or exaggerated claims. Commonly, people may refer to any substantial price move up followed by a drop as a pump and dump even if it doesn't qualify for the technical meaning.
- Put - An options contract that gives the buyer of the contract the ability to sell 100 shares of a given underlying asset for a specified price before a given expiration. A put can be referred to as "deep" if its strike price is far away from the current underlying price.
- Regulation SHO - [Learn more here](https://www.sec.gov/investor/pubs/regsho.htm). Designed to address abusive short selling practices.
- Rehypothecation - Reuse of an asset for multiple things. For example, you could use shorting to manufacture a synthetic share and then you can use both of them to produce more synthetic shares. Based on my understanding, the reason this is the status quo is that it helps improve liquidity. You could envision situations where you might not be able to resolve a rehypothecated chain immediately, but being able to do it allows you to exchange the assets and cash. The issue is that this creates dependency chains of any length where everything has to line up correctly or there's a problem and the size of the chain determines the consequences.
- Restricted stock - Stock that is subject to conditions about when and how transfers take place.
- Securities and Exchange Commission (SEC) - A regulatory and enforcement agency of the United States federal government. [More info here](https://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission).
- Settlement - The process that happens transparently to you after you buy or sell a position. You might own that position on paper, but it takes time for everything to go through.
- Shill - A person or bot that is making posts designed to sow fear, uncertainty, and doubt.
- Short - Indicates a bearish strategy such as selling calls, buying puts, or short selling stock. The belief is that the value will go down. Also used as a shorthand for "short selling."
- Short attack - A planned and coordinated attack by an activist short seller that involves taking out a large short position and then attempting to drive the price down with negative information.
- Short hedge fund (SHF) - A hedge fund that primarily has a short position in a security.
- Short interest - The open interest of short shares, typically expressed as a percentage of float.
- Short ladder attack - Something that was not in common usage before the GameStop saga. There is not common agreement on the specific technical meaning of the word. I've seen some people say it's actually "wash sale" (which is itself an overloaded term - in this context would be transactions where the buyer and seller are the same entity). To the best I can tell, it refers to a mechanism of price manipulation where one or more parties short at a specific price level to cause the price to drop and then proceed to do it some more after the price has dropped (hence, a ladder).
- Short sale restriction (SSR) - When a security drops by 10% or more from the previous day's closing price, it gets put on short sale restriction. This prevents short selling on "downticks" (price movements downward). Once invoked, it's active until the end of the next trading day, provided that the stock doesn't re-trigger the effect.
- Short selling - An arrangement where a party will borrow shares of a stock from a stock holder for a regular fee and sell the shares on the market. At a later time, they will buy back the shares to cover and return them to the lender. The idea is to profit on the reduction in the stock price by selling immediately and buying back later. If the company goes bankrupt, then there's no need for covering.
- Short squeeze - A situation where there are more shares sold short than can be covered on current liquidity. This causes the price to spike because demand exceeds supply.
- Special purpose acquisition companies (SPACs) - A company with no commercial operations. It exists entirely to raise capital and buy an existing company.
- Squeeze squoze - Used as a past tense to indicate the squeeze event has (or has not) occurred.
- Stocks - Securities representing companies, assets, or baskets of companies and assets. They have a price and the value changes over time.
- Stop loss - An order type that allows you to limit the downside of a position.
- Strike price - The arranged price of an options contract. It is set when the contract is opened and cannot be changed.
- Swing trading/trader - Trading that generally holds positions more than a day.
- Synthetic share - Formed when a share is sold short. The share is borrowed and then the buyer also has a share. Now there are two shares.
- T+# - Number of days after the transaction. T+2 means two days after the transaction. Lots of rules surrounding settlement are done on the basis of the transaction date.
- Technical investing/trading - Investing or trading on the basis of chart patterns.
- The Big Short - A movie/book about the 2008 financial crisis and a few people that bet in favor of something that had never happened against all conventional "wisdom." This I can highly recommend.
- Trading - Generally characterized by short-term (under 1 year) holding periods for positions. There are classifications for various kinds of traders - day traders, swing traders.
- Trading sideways - Periods of time where the price of a security does not move very much.
- Unrealized - Gains or losses of a security are unrealized until you close the position.
- Value investing/trading - Investing or trading on the basis of the value being different from the market's current assessment. This could mean that the market price is thought to be too low or too high. Tends to be paired with an eye for fundamental analysis.
- Volatility - The amount of movement of a measurement. Low price volatility means the price does not move much, for example. The term "volatility" is used for both prices and volumes and can be as specific as a stock or as broad as the market. Options have an implied volatility component.
- Volume - The quantity of transactions for a given security. Volume is typically measured against the 10-day average for volume, e.g. if I have 10 days of volume (1, 2, 3, 3, 1, 1, 3, 4, 5, 5), the 10-day average would be 2.8. Low volume would be volume below 2.8 and high volume would be volume above 2.8. May also be compared to volume of other assets that are similar. So you might compare volume for Walmart and Target to get a feel for the retail/grocery sectors.
- Wash sale - A confusing term in and of itself. When applied to transactions for tax purposes, it refers to buying or selling a "substantially similar" security within a 30 day window before or after you sell a security at a loss. For example, you sell SLV at a loss on 4/1. If you buy GLD within 3/1 to 5/1, that's a wash sale for tax purposes. It behaves differently from other types of security taxation. Consult a tax professional for tax questions. When applied to market transactions in general, it refers to a transaction where the buyer and the seller are the same entity. This would obviously allow price manipulation, so it's not legal.

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We all have to start somewhere.
===============================
| Author | Source |
| :-------------: |:-------------:|
| [u/Bye_Triangle](https://www.reddit.com/u/Bye_Triangle) | [Reddit](https://www.reddit.com/r/Superstonk/wiki/index/faq) |
---
Please, do not think of this F.A.Q. as a substitute for doing your own research. This is not the whole story, this is only meant to serve as a jumping-off point.
____________________________________________________________________
What are you even talking about?
--------------------------------
HF - Hedge Funds - often used to refer to the bad guys in general.
SHF- *Short* Hedge Funds - Used to delineate the hedge funds we are against, from our allies
LW - Long Whale - Allied hedge funds or large investors that are also buying/holding GME
DD - Due Diligence, Deep Dive - Research and theories based on that research
TA - Technical Analysis - Graph and Number Data analysis
MOASS - Mother Of All Short Squeezes - The biggest Short Squeeze ever
FUD - Fear, Uncertainty, Doubt -Refers to calculated attacks on morale and individuals
DFV - [u/DeepFuckingValue](https://www.reddit.com/u/DeepFuckingValue/)**, TheRoaringKitty - Keith Gill, Retail Investor, not a cat**
APE - How the most users here refer to one another
HFT - High-Frequency Trading - A method of trading huge volumes in fractions of a second.
OTC - Over the Counter - A decentralized market where trading between two parties can take place without the use of a stock exchange.
____________________________________________________________________
Is the squeeze Squoze?
----------------------
No
____________________________________________________________________
Should I invest?
----------------
That is entirely up to you. This is and has always been a high-risk play. Do not invest money you cannot afford to lose. There is no investment advice here.
____________________________________________________________________
Am I too late?
--------------
Again, the answer is up to you. The short sellers likely need every share to cover their positions. If you want to buy one share, but haven't because it seems like not enough-- Please remember that every share matters, the float isn't very large to begin with.
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When is the squeeze?
--------------------
Nobody knows, and nobody will know. Unfortunately, because of all the variables and moving parts, it is literally impossible to predict. It has become apparent that building up hype over specific dates can be used against us. We have in the past seen dates that everyone built hype around only to have them pass and enthusiasm wane within our subreddit. That having been said, we ask that people stop asking when this will happen. Furthermore, please take any dates you do see on [r/Superstonk](https://www.reddit.com/r/Superstonk) with a grain of salt.
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Why does holding do anything?
-----------------------------
They need your shares to cover their short positions! They got greedy. Thinking GameStop would fail, the short sellers started *Naked Shorting* the stock. Long story short they created synthetic stocks with their special privileges as Market Makers. But they can't cover a short with a synthetic share. So because of the Naked Shorting, the Short Sellers, multiple large greedy money managers, and Hedge Funds need a total number of shares greater than the number available to purchase. THEY NEED EVERY SHARE, EVEN YOURS [CONAN](https://twitter.com/ConanOBrien/status/1364324912396140554)
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aRe YoU GuYs MaNipuLatIng THe MaRKeT?!
--------------------------------------
To be extremely clear, as there is a lot of misinformation flying around. No, we are not. This subreddit is in no way a form of market manipulation. We aren't the ones manipulating the market here. The purpose of [r/Superstonk](https://www.reddit.com/r/Superstonk) is not to "Pump and Dump" the stock, despite what some media sources will tell you. Instead, [r/Superstonk](https://www.reddit.com/r/Superstonk) is just a community of individuals investing in the same stock separately. Furthermore, any use of the words "we" or "us" in any posts or comments is not indicative of manipulation. The use of such words that suggest we are a group only serve to refer to the users that frequent this PUBLIC community (Often referred to as "Apes").
[r/Superstonk](https://www.reddit.com/r/Superstonk) is a place for sharing, PUBLICLY AVAILABLE INFO, as well as theories and excitement. In this community you will mainly find:
-Amazing theories from people who spend hours pouring over data
-High-quality Technical Analysis, the likes of which would be super expensive to get otherwise
-Some really great memes
-The actual truth about the incredibly heinous market manipulation plaguing GME.
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How are these crazy high share prices that people cite, possible? 100k 500k etc.
--------------------------------------------------------------------------------
No one knows how high the squeeze could take the stock price. The best rational reasoning says that these numbers are possible through the laws of supply and demand. Furthermore, it is likely that the Short Percentage is a lot higher than reported, with many suggesting that the short-sellers, cumulatively, need more than 100% of the float to cover.
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What is a Short?
----------------
A Short position is fairly simple to understand. When someone thinks a company will do poorly or is bound to fail, they can establish a short position on said company's stock. To do that one must borrow shares from someone willing to lend them, and then sell those borrowed shares. Then you put that money into your piggy bank for later. Assuming all goes according to plan, the stock goes down like you thought, when the stock drops to the price you are happy with you then buy back the shares you borrowed. You grab the money you sold them for and buy the shares, you give them back to the person you borrowed from and make off with the leftover money.
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So then what is a Short Squeeze?
--------------------------------
The Short Squeeze is a fairly rare financial phenomenon. Basically, when a bunch of institutions think a stock will fail, sometimes they will all pile on the short positions in the same place. More often than not, they probably make a lot of money from this tactic. But occasionally they will get noticed and if everything lines up just right, this "Short Squeeze" can occur. Usually triggered by a catalyst of some sort, Short Squeezes usually happen when the stock doesn't go down but instead goes way, way up.
When it goes high enough that the Short Sellers' other assets are no longer larger than the potential loss they are risking in the stock they shorted, they will get Margin Called. At that point, they are told to buy the stock back at whatever the price because the Clearing House doesn't want to deal with the elevated risk. Once you can't afford the risk you're out. This margin call, theoretically, only has to hit one institution before the dominos start falling. The Margin Call causes increased buying, increased buying sends the price up, the price going up means more Margin Calls, and so on.
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Why are people saying that the short interest could be more than 100%?
----------------------------------------------------------------------
Despite all major reporters of short interest having numbers much lower than 100% on their sites, it is unrealistic that the short interest is as low as they claim. Here's why:
-The industry is largely self-reported, meaning that HF's can choose to report lower numbers if it benefits them. While this practice is illegal, it is only punished with a fine. This fine is often much smaller than the potential loss or gain, the HF may experience if the true data were to be reported. This is fine that Citadel LLC. (One of the bigger HFs shorting GME) has had to pay multiple times in the past, so there is precedence.
-It was discovered by some Apes that there was an abnormal increase in short interest in most of the ETFs with GME inside them. The increase coincided with the spike in January and following that, the media started pushing the "Shorts covered" narrative that was everywhere last month. You can read up on the ETF Short Interest info in the DDs here. To summarize, the short sellers of GME essentially disguised some of their position with shares of Exchange Traded Funds (ETF). By establishing a short position on the ETF and then establishing long positions in every stock in there except GME you basically cancel out your short position in the ETF, leaving only a short position in GME. *Important Note: This does not mean there will be a short squeeze on the ETFs! An ETF cannot really be the subject of a short squeeze due to the mechanics behind them \*
-Synthetic long positions could be used to disguise their short positions as well, the mechanisms behind this practice utilize the options markets and could explain some of the crazy options activity that we have seen in GameStop the last few months.
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Why Gamestop?
-------------
Short Squeezes can happen anywhere there is high Short interest. Gamestop however is a special case (Hence the use of the term/ acronym, MOASS). Gamestop's Short Sellers got extra greedy in this case. They were sure that Gamestop was going to die in the wake of the pandemic. So sure, in fact, that they began Naked Shorting the stock like crazy. Had Gamestop failed and went under, they would have never had to cover all those positions. They would have just went on their way, cash in hand, off to short another company into the ground...
Suddenly a glimmer of hope began to emerge for Gamestop, this hope in the form of Ryan Cohen, an "Activist Investor'' and CoFounder/CEO of [Chewy.com](https://www.chewy.com/app/content/about-us). Finding success in past endeavors, people believe Ryan Cohen, and his plan to turn Gamestop around spell out the end of the line for Short Sellers. Around the same time, DFV started sharing his Bullish thesis on Gamestop's turnaround. After getting hate for a long time for his "Outlandish Theories", people in the Reddit Forum [r/Wallstreetbets](https://www.reddit.com/r/Wallstreetbets/) started to really take notice, now believing that DFV's theories were right all along.
To explain where we are now is difficult, as one could realize from a cursory glance the story is complicated. To summarize as best I can: The Short Sellers seem to have disguised their short position, even perhaps doubling down. They then manipulated the media to spread the word that Gamestop was dead, the squeeze was squoze. While at the same time they employed the use of social engineering to slowly depress the positive sentiment for the stock on Reddit and elsewhere. Recently, it seems that media sentiment is slowly changing as it becomes too obvious for the media to ignore that Gamestop is not even close to dead. The media sentiment changing also seems to coincide with some large investors, of unknown identity, hopping on board the rocket with massive long positions being opened. Many see these large investors as the last confirmation they need that Gamestop is going to the moon. Regardless of the squeeze, I, personally, like the stock.
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What is Naked Shorting?
-----------------------
Just like Shorting, but with more illegality! Through archaic loopholes in the laws governing the financial industry, some individuals participate in Short Selling without actually having the shares. This essentially creates a counterfeit share. When this is done, the short-sellers are taking on a lot of risk, but the payoff can be grand. It's not easy to actually catch the naked short-sellers red-handed but some look to the Failure-to-Deliver data to shed some light on it. Naked shorting is also how it's possible there is more than 100% of the shares out there at the moment.
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Who is Ryan Cohen?
------------------
Ryan Cohen is ~~on the board~~ Chairman of the board for Gamestop, holding the most shares of any individual (9,000,000). Cohen is also head of the Strategic Planning and Capital Allocation Committee for Gamestop, essentially putting him at the helm of the company's pivot. After Cohen's past successful venture with [chewy.com](https://chewy.com/), and seeing the people that he is bringing to the table at Gamestop, there seems to be a very clear and profitable path forward for this company. In November of 2020, Cohen released an [open letter](https://www.sec.gov/Archives/edgar/data/1326380/000101359420000821/rc13da3-111620.pdf) stating how he believes the Gamestop board and CEO had been failing at their jobs, he goes on to lay out a bit about how they could do better with Gamestop as a company.
Ryan Cohen clearly believes in Gamestop, to the point of announcing that he will be taking equity as compensation. In fact, as of writing this *all* of the new Gamestop board members are going to be taking equity as compensation. This is seen as an incredibly bullish sign of the company's future success.
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Catalyst? What do you mean and why is it important?
---------------------------------------------------
Essentially the catalyst is the spark that lights the fire. This catalyst could be anything that triggers buzz around Gamestop (the company) or news about the stocks. It is unknown exactly what will be the event that triggers the MOASS. What is clear, is that the situation is very unstable and really anything can cause major volitility. This Subreddit is full of theories as to what the catalyst will be, I would highly recommend reading them. Below is a shortlist of some of the potential catalysts people are speculating about:
-A Stock Split, or some similar move from Gamestop that recalls shares
-Gamma Squeeze
-Gamestop's Q1 Earnings Call
-Some speculate Gary Gensler (Newly appointed head of the SEC), may make some move that sets things in motion
-DTCC rule changes taking effect
-Appointment of a new CEO
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What is a Shill and why do people keep calling me that?
-------------------------------------------------------
One of the MANY things that the HFs have tried to do to curb-stomp retail investors, is flooding our public communities with Reddit accounts (Some bot-accounts and some actual people who seem to have been paid) purposefully spreading negative sentiment.Though it sounds like a conspiracy, there is plenty of proof. These accounts have been seen all over not just Reddit, but also Youtube, Twitter, etc. Not just conventional social media though also places with message-boards like MarketWatch, Yahoo finance, WeBull, basically anywhere you could talk about GME. The term "Shill" is a blanket term for those accounts, be them bots or people.
In the past, these "Shills" have utilized many different approaches to spreading Fear Uncertainty, and/or Doubt (FUD) about the stock and the company. One of these beings, flooding the subreddits with super basic questions, that lacked any substance at all. This was seemingly in an effort to give the illusion that if you were still holding GME you didn't know what you were doing, because when you looked around you were surrounded by people who didn't have a clue. This, along with most of their other attempts to shake retail investor faith, has failed.
You may have been called a Shill for one of a number of reasons. This community is very inclusive and open to everyone, but because of the blatant attacks this forum has suffered a lot of people are understandably paranoid. (Myself included). Please, unless you really are a shill, don't take it personally.
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What is a "Short Attack" (aka "Short and Distort")?
---------------------------------------------------
The Short and Distort is a time-honored tradition of illegal market manipulators. First, they *short* the stock, then they *distort* the image of the company. This is a practice whereby the Short-HFs actively suppress the price, most of the time through the spread of bearish misinformation about the company in question or the technicals of the stock.
We are seeing this in Gamestop in the form of FUD campaigns and Media Manipulation.
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Shill-Based-FUD and how to spot it:
-----------------------------------
First of all, it is incredibly important to note your potential biases when determining if someone is just a shill trying to spread FUD. Not all FUD is invalid, someone may bring up a solid point against an otherwise great DD, and that could scare you. Remember that just because you do not like what someone is saying, doesn't make it invalid. It is important users here work with constructive criticism to refine their theories.
Instead of shooting this person down as a shill, ask yourself the following: Are they making a valid point? Is it backed up with evidence? Have I fact-checked this evidence?
If you answered no, to these questions, a great next step is to check their post history, Here are some things to look for: Are they constantly posting negative-sentiment, as if they have something to gain? Do their posts/ comments sound coherent? Are those posts repeating the same or slightly different things (copy/pasted)?
Since this forum and others where GME is discussed are public, the ones behind this petty attack can see what we say and how we react to their ILLEGAL MANIPULATION. This means that since this has started (back in January) these Shills have gotten smarter, and less obvious. They become easier to spot over time, don't worry. When you spot a Shill, report it to your local Mods and downvote the post/comment.
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New FUD tactics, What to look out for:
--------------------------------------
The tactics that have been used on this community are absolutely despicable. At first, it was pretty benign, but with the recent attacks on individuals in this sub, it has crossed a line. If these individuals happen to be reading this, I hope you understand how pathetic you are. I feel it is important to remember that these actions being taken against us only serve to prove that there is more to this situation than meets the eye.
Unfortunately, they are always finding new ways to fuck with us. With that said, here are some noteworthy ones as of March 28:
-Spreading FUD about users in [r/gme](https://www.reddit.com/r/gme/) and [r/Superstonk](https://www.reddit.com/r/Superstonk/), more specifically, users that post some of the most viewed DD.
-Bringing into question the integrity of the Mod Team. With the Mods at [r/wallstreetbets](https://www.reddit.com/r/wallstreetbets/) being accused of being compromised, and some turbulence in [r/gme](https://www.reddit.com/r/gme/) this FUD was easy to see coming. Since there was already precedence for it, the shills believe it an easy task to convince the community that their subreddits aren't safe.
-Fake DD. This can mean a few things, there are different ways a 'Fake DD' is done. One type is as follows, The post seems to start out with a positive sentiment but takes a negative turn and ultimately doesn't disseminate anything of value. Another type, this one being far less difficult (and thus likely more common) A DD that comes to a negatively skewed conclusion through the use of lies and false data. This Fake DD can be combated quite easily, thankfully. All you have to do is read the DD, fact-check some things, and read some comments, then you can upvote it. Wildly upvoting every DD is a surefire way to let FUD slip through the cracks and get to the top, that's where it can do the most damage.
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How do I, as a retail investor, stand a chance against the Hedge Funds?
-----------------------------------------------------------------------
There has been much debate over how the retail investors cumulatively stack up in terms of shares held. With all sorts of numbers floating around, it is impossible to know just how large a slice of this pie we are hodling (holding). I recommend reading some of the many DDs on this though. Regardless of the exact percentage, it seems, based on what data we do have, that the narrative of retail investors being on the sidelines of what is actually a Hedge Fund vs. Hedge Fund Battle...
is false. Perhaps, prior to January, that narrative may have been more accurate, but since then retail investors have been buying on every single dip in the price... That's more than two whole months of buying-the-dip. Now, I will not speculate on numbers here, if you want to know more you will have to read the DDs on that.
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Any use of the words "we" or "us" is not evidence of manipulation. We are not the ones manipulating the market. The use of words that suggest we are a group only references this community of people, who are individuals investing in the same stock but as individual retail investors. This community is not a place to organize or manipulate markets and it never will be. It is a place for sharing publicly available information and analyzing/studying that information as a community in a way that benefits everyone fairly and safely.
This is updated almost every week. If you have suggestions for additions to the F.A.Q, please message [u/Bye_Triangle](https://www.reddit.com/u/Bye_Triangle)

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# GME STARTER PACK!
Author: u/Hmuz1991
Welcome!
This is a post containing some definitions and useful links for you (especially those new to the GME saga). I hope you find this useful. Please note this is a work in constant progress so please add stuff / write corrections in the comments which I will edit it in!
First off, here is a good summary of the story here.
Secondly, Here are some definitions of Key Lingo used (in alphabetical order):
## Lingo
**Ape ( 🐒🦧🦍 ) / (Re)tard**: A person who owns GME shares
**Alpha Centuari / Andromeda**: Exaggerated expression of 'moon'
**Bananas ( 🍌 )**: another term for GME stock in reference to the 'Ape' persona
**Bots**: autonomous programme (not real human) meant to infiltrate shareholders and distract them with other stocks or get them to sell
**DD**: Due Diligence or research piece
**Diamond Hands** (or 💎🙌, 💎👐 ): Shareholders that hold on to their shares through ups and downs without selling a single one
**DFV**: DeepFuckingValue, or Roaring Kitty, or Keith Gill, the OG who invested in GME stock focusing on its value and bringing attention to its shorting problem
**DTCC** (or its subsidiary NSCC): the clearance corporation (biggest player worth $63Trillion)
**FTD**: Failure to Deliver; a situation where one party is not able to meet their trading obligations (e.g. when a short position does not own any or all assets required at settlement)
**FUD**: Fear, Uncertainty and Doubt - negative sentiment that is meant to discourage shareholders from buying / holding
**FOMO**: A fear of missing out trade occurs when you notice a sharp rally or slump in a stock, and the desire to join in on the price movement
**GUH**: a meme expression referring to a really big mistake in investment, this is derived from a famous incident explained here.
**Hedgies**: a term for Hedge Funds, mainly the 'bad guys' who have over-shorted GME (Melvin and Citadel are the main ones)
**Moon / To The Moon / Mooning** ( 🌕,🌝 ): reaching massive gains (highs), usually used to indicate the final destination of the investment
**Paper Hands** ( 🧻🙌, 🧻👐 ): People who choose to sell their shares too early for personal benefit
**Rocket** ( 🚀🚀🚀🚀 ): indication of the imminent massive increase in stock price (i.e. take off to the moon)
**SEC**: U.S. Securities and Exchange Commission, the gov arm that is meant to monitor and govern the financial market in the US to protect investors and stop manipulation (so difficult to type this one without laughing)
**Shill**: somebody who has been paid off by the hedgies to infiltrate the shareholders and distract them and/or get them to sell
**Shorts**: usually refers to the institutions that decided to go short on GME
**Smooth Brain**: another expression for GME shareholder (re-tard), used also to express lower level of thinking and understanding ability
**Stonks**: internet slang for stocks, can sometimes be used as an ironic term to describe poor financial decision
**Tendies**: big gains / returns on investment
**Wrinkley brain** ( 🧠 ): used to express a higher level of thinking or understanding ability
**Whale** ( 🐋🐳 ): person or institute with very deep pockets, usually beneficial to shareholders
**YOLO** (or YOLO trade): is where you go all in hoping to make a substantial return
Thirdly, here are some definitions of key financial terms in alphabetical order (these are copied and pasted from investopedia because I am not an expert myself!
## Financial Terms
**Call Options**: financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period. A call buyer profits when the underlying asset increases in price.
**ETF**: An exchange traded fund (ETF) is a basket of securities that trade on an exchange, just like a stock. ETF share prices fluctuate all day as the ETF is bought and sold
**FTD** (or Failure To Deliver): refers to a situation where one party in a trading contract (whether it's shares, futures, options, or forward contracts) does not deliver on their obligation. Such failures occur when a buyer (the party with a long position) does not have enough money to take delivery and pay for the transaction at settlement. A failure can also occur when the seller (the party with a short position) does not own all or any of the underlying assets required at settlement, and so cannot make the delivery.
**Gamma Squeeze**: a trading terminology that refers to massive call buying leading to higher stock prices, which leads to more call buying, a higher stock price and so on.
**Long** (or Long position): The term long position describes what an investor has purchased when they buy a security or derivative with the expectation that it will rise in value.
**Market Makers** (MM): Many market makers are often brokerage houses that provide trading services for investors in an effort to keep financial markets liquid. A market maker can also be an individual trader (known as a local), but due to the size of securities needed to facilitate the volume of purchases and sales, the vast majority of market makers work on behalf of large institutions.
**Naked Short**: the illegal practice of short selling shares that have not been affirmatively determined to exist.
**Naked Calls**: A naked call is an options strategy in which an investor writes (sells) call options on the open market without owning the underlying security.
**Options**: Options are financial instruments that are derivatives based on the value of underlying securities such as stocks. An options contract offers the buyer the opportunity to buy or sell—depending on the type of contract they hold—the underlying asset.
**Put Options**: A put option is a contract giving the owner the right, but not the obligation, to sell–or sell short–a specified amount of an underlying security at a pre-determined price within a specified time frame. This pre-determined price that buyer of the put option can sell at is called the strike price.
**RSI**: The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset
**Short squeeze**: A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall, to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price.
**Short** (or Short position): A short, or a short position, is created when a trader sells a security first with the intention of repurchasing it or covering it later at a lower price. A trader may decide to short a security when she believes that the price of that security is likely to decrease in the near future.
**Short Interest** (or SI): Short interest is the number of shares that have been sold short but have not yet been covered or closed out. Short interest, which can be expressed as a number or percentage, is an indicator of market sentiment.
Finally, here are some key useful links to get you up to speed!
Daily recap before market opens
Daily collection of good research
Free Live L2 Data Stream
All key figures in one place
Key reminder:
This subreddit is a place where GME shareholders come to discuss this stock which they like. This is not a place to organise or agree on certain actions as that is considered manipulation and against the law. Any form of opinion MUST be displayed as personal and to not be taken financial advice.