Day traders are bottom feeders. Period.
They aren’t capitalists. They don’t put capital into a company. They manipulate the day’s events and seek to come out ahead before the market closes and the bills come due.
And this is not a criticism of the Redditors. It is directed at the people who do this every single day.
So these redditors are day-traders?
I thought day-traders only owned things for a day?
“Day traders are bottom feeders.”
I am cheering the redditers on this one. What really irks me is the high speed trading. The trading is such that the speed of light is a factor. They locate servers as close as they can to the exchange to get an advantage. How does the little guy compete with that?
I'm guessing you were short GME?
After the initial offering and any direct offerings from a company, none of the shares purchased on exchanges inject capital into a company. However, with massive shorts against a company's stock, it can make people reluctant to buy the stock, depressing the price of the stock.
Companies with significant shorts against it can make it hard for a company to sell more shares of their company (who wants to underwrite massively shorted stock that is going to further dilute share prices?), and make it difficult for the company to raise capital.
On the other hand, people like WSB and others recognizing a potential short squeeze can breathe new life into a company. Case in point, the increase in share price led to AMC being able to garner a little bit of breathing room and stave off bankruptcy (CEO made the announcement yday).
Day trading isn't easy, or everyone would do it. They put up their own capital to make trades (and are required to maintain minimum $25K account balances or subject to margin call and Finra violations).
How is risking your own capital for the chance to make a profit not capitalism?
Or, are you one of those who think no one should do it because YOU can't do it profitably?
How do you feel about naked shorts?