The odds are stacked greatly against us, so the institutional would win in the long run
TLDR: Throughout human history, those that win and thrived are those that have better knowledge, systems, technologies and capital. I believe the institutional investors would have already changed their model to profit off the apes now. But I still hope that retail will win though ![]()
![]()
How can retail win? Find out below.
(edits) Additional note: This post is not about AMC or any individual stocks. It is just some general thoughts about institutional investors and retail investors.
Story time
Throughout human history, wars are won by those with better strategies, better weapon technologies, better capital. Try fighting a war with swordmen against a machine gun. Try fighting a war with tanks against nukes. It is an uphill battle, a tough battle. Try fighting a war with $10,000 against someone with $100billion. That I feel is the gap between retail investors and institutional investors.
What they have against us?
Fighting on knowledge, we may have wallstreetbets on our side, but they already have bots manipulating our emotions using their post. People have been saying there is tons of synthetic shares which $AMC Entertainment(AMC.US$ had said there is no such thing.
(edits) Additional note: This post is not about AMC or any individual stocks. It is just some general thoughts about institutional investors and retail investors.
Story time
Throughout human history, wars are won by those with better strategies, better weapon technologies, better capital. Try fighting a war with swordmen against a machine gun. Try fighting a war with tanks against nukes. It is an uphill battle, a tough battle. Try fighting a war with $10,000 against someone with $100billion. That I feel is the gap between retail investors and institutional investors.
What they have against us?
Fighting on knowledge, we may have wallstreetbets on our side, but they already have bots manipulating our emotions using their post. People have been saying there is tons of synthetic shares which $AMC Entertainment(AMC.US$ had said there is no such thing.
I wonder how many of the post on $GameStop(GME.US$ or other meme stocks in $WallStreetBets(BK2555.US$ are posted by real humans and how many is by hedge funds trying to screw us up.
We may have the news to rely on, but they have AI and bots analysing the every single news once they are released, and made trades before we can even open the link to read 1 news.
We may have financial statement to rely on, but they have access to insiders. Talking to the CEO, CFO, COO, all the C suites and know stuff before the statement is out.
Fighting on product knowledge, we may have the intimate experience with the companies product we buy, but they have billions to throw in lobbying (even to push for who is president), so that they can manipulate the laws in their favour.
Fighting on emotion, we are risking our own hard earn money on the line, but they are using other people's money. They earn money regardless if they loss or win money. Because of that, we succumbed to emotions, both greed and fear, which are deadly in the investing realm.
Fighting on cost, we may have low cost brokers like $Futu Holdings Ltd(FUTU.US$ and $UP Fintech(TIGR.US$, but they have deals with the exchanges to make transaction cost negligible.
Fighting on capital, we only have tiny amount compared to them, that's why we need apes together strong to have enough fire power to fight them. But apes really together strong? How many apes had bailed out? How many have switch side and short the stocks you are rooting for?
What do we have that will win them?
Try and recall, what we did to win them? What we did that collapse Shitadel and Melvin Capital? We had unity, we have collective knowledge, we surprised them with something they didn't expect.
Those were outside of Wall Street's model, and therefore some of them did not account for it properly and lost tons of money. Some like, Chamath Palihapitiya, took notice and started "standing on our side" and used social media to push us to buy his SPAC, which earns him a butt load of money.
Now I believe the institutional investors would have already changed their model to account for the new ape culture, and had started to profit off the apes now. So unless we have unity and come out with something surprising them again, they probably already have counter measures in place.
So how can we win?
Yes the odds are greatly stacked against retail investors, but investing need not be a zero sum game. For us to win, the institutional investors need not lose. We can have a win win situation. So maybe we should stop thinking in terms of "us against them", but more of "have I made great financial decision today".
I believe that we all win when all our investment is growing, regardless how small it is. I believe we all win when we do not have our brothers and sisters losing their life saving, on a crazy bet.
So what if we all just manage to grow our investments by 3% annually by buying super safe bond? or grow it by 8% annually by DCA on $SPDR S&P 500 ETF(SPY.US$ over 50 years. We only lose when we lose money, but we all win when we make money. So trade safe ya![]()
![]()
We may have the news to rely on, but they have AI and bots analysing the every single news once they are released, and made trades before we can even open the link to read 1 news.
We may have financial statement to rely on, but they have access to insiders. Talking to the CEO, CFO, COO, all the C suites and know stuff before the statement is out.
Fighting on product knowledge, we may have the intimate experience with the companies product we buy, but they have billions to throw in lobbying (even to push for who is president), so that they can manipulate the laws in their favour.
Fighting on emotion, we are risking our own hard earn money on the line, but they are using other people's money. They earn money regardless if they loss or win money. Because of that, we succumbed to emotions, both greed and fear, which are deadly in the investing realm.
Fighting on cost, we may have low cost brokers like $Futu Holdings Ltd(FUTU.US$ and $UP Fintech(TIGR.US$, but they have deals with the exchanges to make transaction cost negligible.
Fighting on capital, we only have tiny amount compared to them, that's why we need apes together strong to have enough fire power to fight them. But apes really together strong? How many apes had bailed out? How many have switch side and short the stocks you are rooting for?
What do we have that will win them?
Try and recall, what we did to win them? What we did that collapse Shitadel and Melvin Capital? We had unity, we have collective knowledge, we surprised them with something they didn't expect.
Those were outside of Wall Street's model, and therefore some of them did not account for it properly and lost tons of money. Some like, Chamath Palihapitiya, took notice and started "standing on our side" and used social media to push us to buy his SPAC, which earns him a butt load of money.
Now I believe the institutional investors would have already changed their model to account for the new ape culture, and had started to profit off the apes now. So unless we have unity and come out with something surprising them again, they probably already have counter measures in place.
So how can we win?
Yes the odds are greatly stacked against retail investors, but investing need not be a zero sum game. For us to win, the institutional investors need not lose. We can have a win win situation. So maybe we should stop thinking in terms of "us against them", but more of "have I made great financial decision today".
I believe that we all win when all our investment is growing, regardless how small it is. I believe we all win when we do not have our brothers and sisters losing their life saving, on a crazy bet.
So what if we all just manage to grow our investments by 3% annually by buying super safe bond? or grow it by 8% annually by DCA on $SPDR S&P 500 ETF(SPY.US$ over 50 years. We only lose when we lose money, but we all win when we make money. So trade safe ya
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Moo Contributor
crawled out of poverty, working towards FIRE!! (financial independence, retired early)
15KFollowers
106Following
17KVisitors
Follow
Chazzy : History is exactly what you said, HISTORY. We are here to make a change and we will. AA said there's no "reliable" source for proof of synthetics and you think our government is reliable? The people who govern over our financial system is the SEC and they are complicit, sitting at their desks jacking off half the time, not to mention 20+ caught doing so while only 1 resigned, none fired. Understand you can't keep the same system forever because HISTORY shows us that too if we are going off history. WE ARE HERE TO CHANGE WHAT YOU KNOW AS HISTORY.
MuscMoo : ceo said he can only count the registered shares but he also said that there's naked shorts out there, so I won't read beyond that because your premise is flawed. this is a short Squeeze Play
Expendabiggles : The pressure is going to keep building until the market implodes. The fallout will be painful but no one on the bottom cares. We might not be in the loop like the top dogs but that doesn’t mean we’re stupid. We KNOW what institutions are doing to make all this money. The market fraud will be fixed or the machine will destroy itself and that you can bet on. This is far from over.
Rudimentary : Your sentiment of unity is good but Rome did not fall because it lacked resources, wealth, knowledge, or anything else you mentioned. It fell due to greed, lack of leadership, and the warring clans to who's territory was taken by the empire. It fell because the rulers became weak, the people lost faith in them and the empire was slowly divided.
The apes are the people who have lost faith in our system. War is no longer profitable to the nation as a whole. The industrial machine that was the United States has been divided by the greedy that outsourced for cheaper labor and material. That same greed is going to wreck the financial market. It is clear the market is unfair and the wage gap is ever increasing. The people decide if the system stays in place. All the apes need is a leader to bring them together again. Someone who is undaunted, a martyr per say.
Zerocool888 : I am fine risking my 10% of my entire wealth which I invested on AMC. If it goes a BIG FAT ZERO one fine day (we already know it won’t go zero), I just take it as a bad investment call. It’s that simple!
Sometimes in life it’s about taking a little risk. Why write such a long essay explaining. Keep investment simple. Remember, this is not 2008 when social media hardly exist. It’s 2022 where informations travel at light speed.
We did not start this war with them. They brought it upon themselves. You have no idea how corrupted the current system. It’s all about making the rich, richer and screw the rest.
Ask yourself this very simple question. If AMC is a useless company, WHY ON EARTH ARE HEDGE FUNDS STILL SHORTING Monday to Friday? Why? I believe you already know the answer to my question.
doctorpot1OP Chazzy: Yes, we had changed history and crushed many HF, but the institutional investor will learn from history and adapt.
In regards to reliability, I will side more towards more reliable sources then less reliable source. Why should we listen to people online who are anonymous? They could be hedge funds bot trying to pump the stocks up too. Pump and dump is a well known strategy and is more profitable then to short the stock.
If HF pump the stocks up they technically can earn a lot more money, then to pump it down. So won't it be smarter for them to long the company, keep rallying retail investors so they will help pump the shares to the moon then dump it all on them?
doctorpot1OP MuscMoo: yes and there are ways for HF to bet against the company without needing to affect share count. Like using a swap, which is what cause Bill Hwang to go down the drain.
For narrative of loads of naked short, I just haven't seen concrete proof.
Chazzy doctorpot1OP: it's more profitable for them to short and when the company declares bankruptcy the shorts get their money tax free. At this point they are so deep that if they wanted to long it they would still bankrupt themselves, also they would just rather put retail in their place.. NOT this time
Chazzy doctorpot1OP: infinite losses on a short position, longing would just be counter intuitive
doctorpot1OP Zerocool888: The long essay is just to analyse the situation, and also to share information on why we are at a disadvantage so that with more information people can try and think about it.
Yea, I agree with you that taking a risk can reap better reward, provided it is within the risk tolerance. I can see you have a good plan and only allocate 10%, but I have seen too many who allocate 100%, 300% (using borrow money, mortgage etc) gone bust.
so I'm just thinking is it worth it, to risk everything to fight against HF, to the point that our life is at risk?
Plus, HF are probably are now trying to do pump and dump instead of short as pump and dump can earn a lot more money.
View more comments...