Member-only story
WallStreetBets Is Not Your Friend
It is now a platform for the professional to use against you
The retails thought that they have triumphed over the professionals when WallStreetBets uncovered stocks that are over-shorted and the mass buying effects caused one of the most impressive short-squeeze in modern financial history that almost brought down a giant hedge fund.
However, the triumph would prove to be short-lived and if there is a reason why, I would declare that to be the forum’s own success that would eventually transformed it from a tavern of everyday heroes, to that of a mass grave for the naive.
The simple truth is this: Given that this platform is open to all, it would mean that the even professionals have access to the information available. This wouldn’t be too huge an issue if the professionals are merely using the information to know when the next big buying opportunity is for them to follow the crowd.
The issue will come when they are using the platform to manipulate this platform to serve their own needs, using the everyday people as a greater fool. Now, how can this happen?
Let me offer you a couple of ways.
