Tag: Retail Investing

Here’s Why Hedge Funds Fear Retail Investors Right Now

Retail Investors AMC Community
Retail Investors VS Hedge Funds

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.

franknez.com

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

What was once denied and hidden to the public for so many years has now become public. Naked shorting and dark pools have gone mainstream through platforms such as CNBC and FOX News.

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.

OCC request to delay liquidation
OCC Request To Delay Liquidation

Here are the rules the Options Clearing Corporation (OCC) is requesting:

  1. 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
  2. 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
  3. 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.

Franknez.com

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Read: Ken Griffin Lied About Robinhood Connection #KenGriffinLied


How to Successfully Invest in AMC Stock

How to Successfully Invest in AMC Stock
#AMC #AMCtothemoon #DiamondHands

Retail investors are strategizing a way to short squeeze AMC stock. What does this mean? It means hedge funds lose billions of dollars and the average investor has the potential to cash in life-changing numbers.

For the new retail investor that cut their loses as the stock was going down, well you might have just gotten off at the wrong train stop.

Forums are beginning to shed paper hands, or newbie retail investors who cut their loses before the objective, or who took early profits of AMC.

So, how are retail investors successfully investing in AMC stock and why has the stock hit a new level of support? Here’s what we do know.

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Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get stared!

Why AMC? What’s so special about this stock?

AMC is currently the most shorted stock in the market. This means hedge funds and short-sellers are betting on AMC Entertainment to completely vanish from the face of the earth.

However, r/wallstreetbets took the opportunity to pump the price action by doing exactly what Keith Gill did with GameStop (GME).

AMC was on StockMarket’s #1 place for the most shorted stock in the market but it seems they’ve taken it down for some strange reason.

Read: How Do Hedge Funds Manipulate The Stock Market

AMC number one shorted stock in the market
Here’s the screenshot prior to the complete obliteration of the stock on the list.. retail investors smell foul play.

In the midst of financial history

What we’re experiencing today ladies and gentlemen is a financial war between retail investors and short sellers.

Investing in AMC has uncovered just how corrupt our financial system is. With this being said, hedge funds will no longer be able to get bailed if retail investors win this war.

This is exactly why hedge fund partners are doing everything they can to steer the masses from investing in AMC. We’re certain you’ve seen bogus headlines everywhere online.

What are retail investors doing that’s keeping AMC afloat?

AMC experienced a gamma squeeze when it hit $20 per share back in late January where it gradually plunged back down and met a level of resistance at $5 per share.

Although we’ve recently seen AMC share rise up to $11 after hours, it looks like it has established a second level of resistance at $8 per share. What we’re seeing here are steps of resistance that are gradually increasing.

So, how are retail investors pulling this off?

Easy, retail investors continue to hold their positions. They are not selling and they are even buying the dips.

Short-ladder attacks from shorts might have caused new retail investors to sell early, but not the majority. The majority of retail investors holding AMC positions are looking to squeeze the shorts out of their positions.

And it’s only a matter of time before short-sellers close their positions due to the accruing interest on borrowing AMC shares.

Is this what’s going to cause an AMC short squeeze?

AMC short squeeze

Absolutely. Retail investors obtained all the knowledge they need to make a short squeeze like GameStop’s possible.

The answer to how to successfully invest in AMC? Buy the dip (market on red) and hold your position (hold the stock).

How high can AMC share price go up to?

Financial experts are speculating the stock price can go as high as the shareholder demands.

In fact, hedge funds can end up going bankrupt due to two major plays. 1. the accumulating interest on the borrowed shares and 2. retail investors conviction to hold the stock.

This means that if you own AMC stock and continue to hold throughout the short-term loses and gains, you now hold a stock that short-sellers eventually need to buy back to cover their positions.

And guess what? If you don’t want to sell it to them for $15 that’s okay. The price will go up and if you decide you don’t want to sell it for $50, that’s fine too.

This is how retail investors are successfully investing in AMC. They’re buying the dips and continuing to hold their positions until the stock price continuously experiences gains and meets new levels of support.

Read: How high can AMC stock price skyrocket up to?

Is it too late to get in on AMC stock?

If you’re like most retail investors who are speculating the stock price to rise anywhere from $100-$1,000+ then it is not too late to get in on AMC.

See, retail investors holding AMC positions aren’t selling at the sight of $20 or even $50 per share. Their vision has to do with life-changing numbers, not a quick profit.

Read: Is it too late to get in on AMC stock?

How soon will we see a short squeeze?

There are many speculations to when a short squeeze will occur.

Right now we know that AMC is the most shorted stock in the market and hedge funds don’t want people investing in it.

We also know that shorts will be covering their positions very soon due to the accruing interest on the shares they’ve borrowed. Depending on how many close their positions, retail investors can expect a series of gamma squeezes that lead to the inevitable short squeeze.

Short’s can hold their positions as long as they want to so we can’t say for sure when any sort of squeeze will happen. However, the borrow fee interest on shares they’ve borrowed is steadily increasing. In a month we’ve seen this interest go up from 3% to a whopping 9%!

So they’re holding alright.

Retail investors will need to be patient if they are to see a full on squeeze like that of GameStop’s, if not bigger.

Read: How soon will we see an AMC short squeeze?

Are you an AMC shareholder?

Consider sharing this post with a fellow ape. With a ton of backlash online from hedge fund partners, the community can use some positive articles.

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