I spoke to somebody about those trading apps who knows a bit about them he has an interesting take on them .Like UBER or Revolute they are Disrupter's .The latest Robinhood app lets you trade commission free so how do they make their money ?Simple they are owned by the Big Brokerages and Clearing houses .Here is a scanario Big Dommo Inc invests in Pigeon Pie Ltd who intend to buy Pigeons that are to old to race and cook them in a Pie .They realize they are flogging a dead horse and the Pies should of contained the more flavourable dead Horse .So somebody on Reddit or your Broker recommends Pigeon Pie Ltd as a buy and the small invester piles in and buys the Shares .Now comes the question we know who is buying the shares its small investors trying to make a coin and they are selling them on to the next small investor who is trying to make his fortune but in the end everybody knows that this is going to collapse and the lads left holding the shares lose their shirt .
The Game shares that are surging at the moment is portyayed as a Battle between Short Sellers and the little guy .Short Sellers are People who believed that lets say next reporting day in the Financial year for Pigeon Pie Inc the shares would be woryh less than they were last year they would offer to Sell you on Financial Reporting Day 2021 Pigeon Pie Inc Shares for the same price they were last reporting Day .These People put nothing into the Market which helps to finance the business that is done by the Actual Shareholders .Short sellers just bet against the Share with other investors who want to invest in the Share and it saves them having to actually invest real money in the share they buy Options or Contracts for Difference in the Share and only have to settle up on The next reporting Day or Triple Witching which is when all bets must be settled .
The dealing in the Shares that is being reported on and sensationalised at the moment is fuckology .Some big Investment funds are calling Foul that they are losing Billions This is mostly bollox .They are involved with the whole scam they are behind this fraud .The minute they saw the share price go up they bought millions of them to cover their short position sending the share higher then the small dealers came back in and sent them even higher .The end game is the Big Brokerages will take a new Short sell against the Shares and dump the millions of shares they hold in one lump and crash the price recovering the few hundred million they lost on their original trade and the small Reddit investor or Pension Fund that has invested in the share gets burned .Its all a matter of timing .
This new Reddit share Game is only for entertainment .Leaman Brothers ,Enron ,Anglo and Other Banks in Ireland Were exactly the same thing but the Real Biggie is going to be Tesla .It is one of the Worlds most valuable companies yet it makes no real Profit as it uses investor funds for its day to day costs of building factories and backhanders .When was the last time you saw a Tesla Car ?People are investing in Teslas Future to be the Worlds leading EV manufacturer .In a field they had almost exclusivly to themselves they couldnt make a profit wait till Ford ,GM,Daimler ,Toyota ,and whatever China invents comes to the Market Tesla will Crash and burn .Merch knows what he is doing its all about hoping you get the timing right but you never know when the big share dump will come and millions of shares in a company are for sale but cant find a bid as nobody wants them .
I do something Similar to What Merch is doing At the beginning of the Season I posted that Liverpool would not win the League as Virgil van Dike would be a big loss .So I laid liverpool @6/4 to lose two Grand .They went 4/7 at one stage and it looked like I was fucked so I had to make a choice Buy Liverpool @4/7 take some losses or wait and see what happened I waited Liverpool went through a bad patch I took the opportunity when they were 7/1 to win the league to have a few ton on them to cover my potential losses and freed up the cash I put in and took my profit .I also advised invest in Spurs to win the league I knew they had no chance but I had a small few euro at 11/1 when spurs went 5/1 a few weeks ago I sold out and took a small profit .Betfair and Robin Hood apps are exactly the same thing you take a position and play your hunch .I prefer playing the Horse or Soccer Market not the Stock Market .Liverpool cant win or lose the League in one game so you get a bit of time to trade out of a bad bet or buy cover .But stocks can collapse in seconds for unknown reasons and you can be left with huge Debts ask Sean Quinn .If I was a Long term investor my bet would be 5/4 which is 125% return on your investment Sinn Fein to be the largest party in the next Dail .If we were not in this Covid Conundrum I would of put a few hundred a week into this bet .Its as safe as money in the bank and if it looks dodgey the get out bet is back FG there are only two possibilities .Unless you can afford to lose stay away from Stock Markets or Investment Consultants like Stamford or Bernie Maydoff .I use to write reports for a brokerage house things like who were building Hotels appartments planning applications in Ireland to get paid small money but the dishosest cunts refused to pay for the reports so the Man who employs casual Labour (men ) there were a few involved are no more .Things like knowing that there was no funding for the Paddys Day Parade might be of no interest to most but if you are thinking of investing in Irish Hotels that gives you information that Irish Hotels wont be doing much business in 2021 so dont invest .