Hedge funds in America have posted near record losses in a matter of days. Part of those losses come from the fact that they wouldn’t of made those gains had someone else not lost. It’s called short-selling.
Short-selling is defined as:
Short selling occurs when an investor borrows a security and sells it on the open market, planning to buy it back later for less money. Short sellers bet on, and profit from, a drop in a security’s price. This can be contrasted with long investors who want the price to go up.
This is a popular tactic with investors who intentionally seek the stock market to go low rather than high.
Enter: companies like Gamestop; AMC, and others.
As a result — a popular reddit group popped up online this week. It is called WallStreetBets and the group alone has caused significant disruption on the stock market. The craze has now reached our neck of the pond as people are buying the stocks overseas.
Piece of advice: Don’t listen to the suits on T.V pleading with people to stop. They need you to stop for hedge funds to gain. Similar to the way Forex works — in their case one (you) must lose for them (the fund) to gain.
We’re getting in on the stocks ourselves.Remember if you are getting in on the stocks today only buy what you are willing to part with.
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