Retail investors have never been this invested in the markets before. A lot of you have been increasing your knowledge database all year.
We used to park our money in long term index funds or pick some of our favorite companies to invest in and that was it. We let the media decide how to move the markets and we made decisions based on that.
However, ever since investing in momentum stocks such as AMC and GME stock, retail investors have never had a chance at a fair market; until now. The AMC and GME community are changing everything.
From deciding the worth of a company, to being a driving force that has the ability to save industries, hedge funds have awoken a sleeping giant.
Welcome to Franknez.com – I’ve been doing a lot of reflecting on the growth and impact of our community recently. Here are 5 reasons why hedge funds fear retail investors right now.
Lets get started!
#1. Knowledge Is Getting Spread
More retail investors have joined the markets and are getting a dose of knowledge every day. If you really think about it, more people have begun investing in the stock and crypto markets than ever before.
People are tired of not doing something to change their current positions in life. Be it monetary for most. Retail investors are in the markets and taking life changing measures to change their financial situations.
And I’m proud of you for that because that’s what it’s going to take to make it out there. Keeping your money in BofA or Wells Fargo isn’t going to multiply your money.
So kudos to you for taking calculated risk and allowing your money to work for you. And if you haven’t shown a friend or family member how to invest in the markets yet, I’m going to leave a link at the end of the article that you can send them so you can save your time from showing them how.
Meme stocks changed the markets in the way that it brought a ton of new retail investors to the game. But what happened next shocked hedge funds. The knowledge of malpractice in the markets spread and now we’ve created a massive movement towards having a fair market.
Knowledge in our community has spread and can continue to spread like wildfire. This is a massive threat now more than ever to hedge funds illegally shorting the companies we’re betting on.
#2. Naked Shorting & Dark Pools Have Gone Mainstream
Our community has magnified the cancer in our markets and the spotlight is now directed towards these problems.
We’ve forced the media to cover our story. We’ve forced change to an extent and we must keep making noise.
Naked shorting and dark pool trading must be stopped. I’ve seen many of you tag Gary Gensler and the SEC on Twitter. Keep it up.
Believe me when I say they see our concerns and they see your comments. Let your voice be heard even when it feels like it isn’t being heard. I hear you, the community hears you, and believe me they hear you too.
#3. We’re Putting Real Pressure On Regulations
We know the SEC hears us because they’ve been pushing regulations out although hedge funds continue to find a way around them.
However, we know that the SEC is only making themselves seem like they are doing something, so they don’t look complacent in the eyes of mainstream media.
But we know nothing has really changed. In fact, hedge funds are fighting the SEC on delaying liquidations and margin calls right this very moment.
OCC Requests To Delay Liquidation
Retail investors on Reddit recently came across a proposal sent to the SEC by the OCC (Options Clearing Corporation) to delay liquidation in short and long positions.
Here are the rules the Options Clearing Corporation (OCC) is requesting:
- Rule 1104(b) – authority to delay the immediate liquidation of a suspended Clearing Member’s margin deposits and to use such deposits to borrow or otherwise obtain funds from third parties
- Rule 1106(e) – authority to determine not to close out a suspended Clearing Member’s unsegregated long positions or short positions in options or BOUNDs, or long or short positions in futures
- And Rule 1106(f) – authority to execute hedging transactions to reduce the risk associated with any collateral or positions not immediately liquidated or closed out pursuant to Rules 1104(b) and 1006(e)
We have the power to call out the SEC and Gary Gensler and say we do not approve this as it’s a violates the protection of retail investors from manipulation in the markets.
Only you can do that. We need to ensure that hedge funds get their positions liquidated for AMC and GME to squeeze. Squeezing hedge funds from their positions will do more than make retail investors rich, it will create real change for future investors.
We have the power to create a fair market. All we have to do is be proactive about what we want.
You can read the rest of the incredible DD on r/superstonks here.
#4. Hedge Funds Continue To Eat Millions of Dollars
For every day you hold, hedge funds shorting AMC and GME stock continue to face devastating losses.
I get it, red days aren’t the most exciting. And seeing the manipulation occur in front of our own eyes doesn’t make matters better.
But know this. You holding your stock is causing our adversary so much money that they’ve become so desperate to the point they are asking the SEC for delays on liquidations.
Community, I think we’re getting close.
We are crushing it!
Why Are Hedge Funds Delaying The Inevitable?
They are trying to wear you out. Patience is difficult, I know. By delaying liquidation, they chisel away at retail investors with low convictions.
These institutions have been playing a game of psychology with us all year. They’ve even used AI technology to predict retail’s moves. Their technology can’t give them proper data when all we’re doing is buying and holding the stock though.
This strategy has been our biggest advantage and I’m confident in saying it’s going to pay off.
#5. Retail Investors Are More Intelligent Than They Thought
I think it’s fair to say retail investors have been greatly underestimated. We tarnished reputations from $0.01 expert analyst predictions, denied our table to a two-faced Jim Cramer, and have made the average person a lot of money on paper.
I guess dumb money isn’t so dumb after all.
Our community has been doing the homework every day for almost ten months now and will not stop advocating a fair market.
This historic moment will never be forgotten. You reading this, yes you; have more power than you could ever imagine.
I’ve Never Said This…
There’s something I’ve been wanting to get off my chest for quite some time now. And I think I’m ready to say it now..
I’m proud of you.
I’m proud of you for staying grounded, for shunning negativity, and for sharing valuable content and data with the rest of us.
I’ve used my platform to protect the community, share the knowledge, and to communicate with you. But ultimately, it’s you who’s made a world’s difference, not me.
Your courage is moving mountains! And that’s why I love this community. Your courage has given me strength when I’ve needed it too. So thank you for simply being you.
Read: Ken Griffin Lied About Robinhood Connection #KenGriffinLied