GameStop Manifesto: The Sad Hidden Truth
Posted Feb 19, 2021, 10:17 AM UTC
1195
I'm not trying to shill for WSB or anything, but I remember watching Destiny's stream awhile back and he was very adamant that it was impossible that retail traders caused the movement in GME, the reasoning being that retail traders are like a minuscule part of the market compared to hedge funds/hfts.
I'm wondering if Destiny has talked about recent claims such as "Retail investors have accounted for as much as 25% of the stock market's activity" up from 10% in 2019, and I've heard that it's upwards of 40% in the GME era (that article is from July 2020), can't find a source on this, I know it was brought up in the GME hearing yesterday.
Looking at this article more though it seems like it defines "activity" as % of trades made - not volatility - if they were making up 25% of the total volume, that'd be a different story, but they're just 25% of the total trades (the trades made by institutions are likely magnitude larger compared to retail).
Just wondering if Destiny has talked about it / looked into it more - don't think I heard it mentioned in the manifesto.
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Pretty sure the "Retailers are driving this" section in his document covers this. Not your source specifically but if the retailers net sold it doesnt really matter how comparatively big the volume of trades is.
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According to Citadel, the orders they executed leading up to the GME squeeze were net sells (AKA more selling than buying). So, if anything, retail traders slightly helped decrease the price.
Anyway, without more data we can't tell how effective retail traders are at moving price. They are much more sporadic so I would assume the 20% of market volume from them is much less powerful. And, they all fend for themselves so they lose a lot of their power as soon as a the price of a stock grows a percent and half of them decide to abandon ship.
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good shit. destiny should do manifestos exposing content creators who engages in misinformation
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One of the most educational things Destiny has ever posted. Actually interesting stuff if you aren't only looking for memes