Reddit Crowd Bludgeons Hedge Fund in Warning to Industry | Hacker News Reader

Reddit Crowd Bludgeons Hedge Fund in Warning to Industry

bloomberg.com

36 pointsdownandout15 comments

One user made over $50 million on this from a $50K original investment. This screenshot was taken from a post yesterday (1/26/2021), at which point he had made $22 million. Today (1/27/2021), he made an additional $25 million. /r/wallstreetbets is now locked down because of the publicity, but here's a screenshot explaining the story:

https://i.imgur.com/Q1Ue2cU.jpg

Unrealized, but regardless will be a mind blowing return in any case. Then again, he did proselytize others to the position, so it makes sense given the similarly mind blowing popularity.

I think he sold a fair amount of it today. As for proselytizing, I'm pretty sure his initial position was met with ridicule.

Yes, from what I read, he cashed in about $13 million.

That story in particular jumps out at me. This is being described as a rebellion against rich Wall Street bankers by the everyday people... but who has $50K sitting around for investments like this?

Don't get me wrong, I think a lot of people buying are full of rage at Wall Street. But I think they might get even angrier when they realize who made off with most of the money in the end.

It was his life savings.

That maybe be what he says. I’m dubious.

A reasonable number of upper-middle-class American professionals have that kind of money. Maybe not always in cash, but it's far from an implausible amount.

I would go so far as to guess that a sizable number of users on this very website could manage that amount.

I'm an average dude financially. Make less then 75k a year with a family of six. I could loose 50k in cash and be fine. My SO would be tiffed, but our life wouldn't change.

But would you bet that 50k on a single stock?

Somebody who doesn’t follow the markets probably wouldn’t, no. But those in /r/wallstreetbets aren’t unfamiliar with the machinations of the markets — for many of its core users, it’s not just some little side hobby.

Essentially the people who graduated college at the start of the 2000 crash, were further victimized by the 2008 downturn. These are people that picked up habits of Great Depression victims in savings habits and lack of trust in safety nets.

The user is u/deepfuckingvalue. He made the first post in September of 2019 and then followed with bimonthly posts until this year when he started posting daily screenshots. You can see from the earlier posts, how this trade was met with ridicule. You can also check him out on Youtube at RoaringKitty

https://www.reddit.com/user/deepfuckingvalue/posts/

It's relatively easy to turn $100-$1000 to $50K-$100K with day trading/stock options. If you know what you're doing.

I know this comes off as insipid, but how would one come to 'know what they are doing'? Sorting the wheat from the chaff when it comes to amateur stock trading advice is exhausting, and I would appreciate someone knowledgeable telling me what the best resources are, what their methodology for making money is.

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