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Old 01-28-2021, 08:52 PM   #21 (permalink)
invader
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Join Date: Apr 2009
Location: Bronx, NY
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The Hedge funds lose millions everyday, but when they win they make tens, or hundreds of millions. If they lose 50 million and make 51 million they are happy.

It seems like Wallstreetbets original goal was to bankrupt the Hedge funds. That is why a part of the meme is not to sell no matter what. The Hedge funds have to keep buying back the same stocks they short to make up for the losses (if the stock goes up). If there is no stock for them to buy, they go bankrupt. Making millions is a side effect.

Someone explained it to me in terms of poker; Imagine you are playing a game where everyone else you were playing against's sole goal was to make you go bust. Every hand, everyone is in and they always raise. Eventually you are going to go bust along with a decent number of the other players. Sure one or two of the other players will win big, but that is just a side effect, most people at the table will walk away with nothing.

That is why so many news outlets are advising people just to sit back and watch the craziness happen because when all is said and done odds are you are going to be one of the people at the table that went bust.

But at the same time if you wan't to participate, treat it like gambling. Don't bet an amount that you are going to miss if you lose it.
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