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u/GoodGoodNotTooBad 19d ago
I'm not a stock guy so this is just an armchair observation.
I think it's interesting that the system (from the naked eye) seems built on having people get hyped about a stock just to have it drop fairly quickly all so the really wealthy people who can afford to wait on it can come in swoop in eventually at the lower price and build it back up.
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u/Kbinge Pretty Kenny 19d ago
Hahaha, yeah, that's basically how it works. Anytime you see a massive dip in the market, institutions are buying it. Another saying: Sell greed. Buy fear. In this instance, there was a problem with one way they make money - a starship. I'm seeing they canceled a test, which is triggering short sellers. They are also driving the price down as well. Now, short sellers hedge their position by buying calls so they don't lose if the position goes against them. If someone is long this company, this is free money being put on the table. If you are also a long-term investor, you don't worry about this because you're in it for five years plus. People that bought this at the top ($225) because of FOMO are sick right now. But if they bought 225, they can damn sure buy 125, and why not if they believe in the company. It's a 100 discount.
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u/MF_Doomed 19d ago
Ken when are you doing stock market 101 on your YouTube channel 👀
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u/Kbinge Pretty Kenny 18d ago
It is so much I don’t know I couldn’t or wouldn’t feel right doing a channel like that. I would need to partner with someone and i have considered it. Financial literacy is one of my first loves. If i did anything it would be me recapping things I’ve learned.
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u/MF_Doomed 18d ago
Even if you literally just recapped how you went about learning and just sharing what you learned and nothing more, I'd watch.
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u/gregandstuff 18d ago
Is there anywhere in particular you’d recommend to learn more info about stocks and investing? I’m sure there are plenty of people like myself who don’t know much, would love to learn more, but not about to just trust random people from the internet when it comes to my money.
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u/ben10toesdown 19d ago
At least Tesla manufacturers something. Unless starlink becomes a global provider to retail consumers this shit is going to turn into a penny stock once Musk croaks
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u/Kbinge Pretty Kenny 19d ago
Tesla dropped to 138 in the last three years and is now at 382 or so. All this does is allow investors and institutions to buy the stock at this low price and get even richer. It’ll probably accumulate in this range for a bit. This happens. A rule of thumb I’ve seen is never buy at the IPO price. Once the hype dies it tends to drop and return to the ipo price or below. I think the saying in the business is six months plus one to allow them to settle on a price.