Is GME dead? Sell or Hold

**mastergun** · 02-17-2021, 09:40 AM

First, I appreciate everyone who has taken the time to answer all my questions over the past couple weeks as I try to stick my toe into trading a bit.

I've tried researching this question but quite honestly I'm not sure where to look and reddit just seems to be flip-flopping. I'm trying to figure out if I should go ahead and cut losses now or hold out.

I bought in to GME @ $66 share (so I avoided the $300 prices)....it has steadily dropped to where it is right now around $48. I've read where there is still a chance it could rebound based on how much it is still shorted, etc. But that could all be Reddit bias and hope.

I don't need to sell, but I have no desire to keep it just for it to fall to pre-squeeze levels on the hop it may bounce back. Any thoughts on if the session in congress related to GME tomorrow will have any impact to the price?

Should I sell now and get out or hold? Understand everyone's situation is different but I could use some recommendations from those much more experienced than I am.

Thanks,

robert

**Almag6** · 02-17-2021, 10:30 AM

THere's a thread on reddit where MArk Cuban did a Q & A right after GME peaked. I'd suggest finding and reading that thread for some insight.

**boneil** · 02-17-2021, 10:58 AM

What would be more painful, sell now, take your loss and then stock skyrockets to 66 or even more, OR the stock goes down more to $30 or $20 or even lower. NOBODY knows what the stock will do. Probably 95% of reddit posters have no idea what they are talking about.

When reading posts here or on reddit or anywhere else, I always assume that the poster is talking his book, isn't using real money, or doesn't really know what they are talking about. They could be making an honest mistake or they could be aholes. Of course most are well intentioned. Only use posts for ideas.

**mastergun** · 02-17-2021, 11:08 AM

Originally Posted by Almag6

THere's a thread on reddit where MArk Cuban did a Q & A right after GME peaked. I'd suggest finding and reading that thread for some insight.

I've read the thread and Cuban's AMA. His advice at the time was to hold if you can afford to. I don't know if that advice still applies considering everything that has went down since that interview. Robinhood and other brokerages stopped trading of GME that stopped the momentum and many rumors that market makers and hedge funds have been manipulating the stock to get the price down allowing them to cover their shorts at a lower price.

Plus, not sure how much stock I'd place into Reddit at this point. Many on there have seen very large losses and are more emotional...all 'Diamond Hands' and stuff. I'm willing to take the loss, but if there is any fundamental reason remaining that drove the original GME spike I'm willing to wait it out.

**mastergun** · 02-17-2021, 11:10 AM

Originally Posted by boneil

What would be more painful, sell now, take your loss and then stock skyrockets to 66 or even more, OR the stock goes down more to $30 or $20 or even lower. NOBODY knows what the stock will do. Probably 95% of reddit posters have no idea what they are talking about.

When reading posts here or on reddit or anywhere else, I always assume that the poster is talking his book, isn't using real money, or doesn't really know what they are talking about. They could be making an honest mistake or they could be aholes. Of course most are well intentioned. Only use posts for ideas.

And there lies my issue..lol. It would suck to sell and watch the stock bounce back up and it would equally suck to watch it continue to drop. I'm gonna wait and see if the congressional session tomorrow has any impact on the price.

thanks,

**IMhooked** · 02-17-2021, 11:48 AM

What was your hope for your $ when you bought in? Earn a profit and cash out? OR did you believe GME was undervalued and you were purchasing stock in a solid company with solid financials for the long term? Were you FOR THE CAUSE? Was this fun money? Did you watch it daily/hourly and if so if your goal was a profit why didn't you sell?

You could hold and could endure more/total loss. It could rise but at what point are you going to "cash out"?

What are the short term and long term capital gains/losses mean for you if and when you do sell?

Are you just getting into TRADING or are you at the point of starting to INVEST? To some they mean the same thing. To others they're entirely different practices.

**boneil** · 02-17-2021, 12:21 PM

Looks like roaring kitty AKA deepF***value is being sued for securities fraud. UH oH

**mastergun** · 02-17-2021, 12:23 PM

Originally Posted by IMhooked

What was your hope for your $ when you bought in? Earn a profit and cash out? OR did you believe GME was undervalued and you were purchasing stock in a solid company with solid financials for the long term? Were you FOR THE CAUSE? Was this fun money? Did you watch it daily/hourly and if so if your goal was a profit why didn't you sell?

You could hold and could endure more/total loss. It could rise but at what point are you going to "cash out"?

What are the short term and long term capital gains/losses mean for you if and when you do sell?

Are you just getting into TRADING or are you at the point of starting to INVEST? To some they mean the same thing. To others they're entirely different practices.

IMhooked, thanks for the response. I'm embarrassed to say, I bought into the hype and was hoping for some quick easy money. I've never personally traded stocks, fortunately the delay in opening and funding a brokerage account saved me quite a bit of cash. I caught the GME stock on the way down and not up (it could have been much worse).

I've always just paid into my 401k and mutual funds, never really paid much attention to them. The whole GME thing got me interested in trading stocks. I've really started to find all of this very interesting, this is all fun money to see how I could, learn about the stock market and maybe make some cash in the process.

**NitroZ7** · 02-17-2021, 02:37 PM

I think the event driving it up was a short lived once in a decade short squeeze. Since that event has passed, is there a fundamental reason when you look at the company to think it is worth $60.00 or more in the future?

**mastergun** · 02-17-2021, 03:22 PM

Originally Posted by NitroZ7

I think the event driving it up was a short lived once in a decade short squeeze. Since that event has passed, is there a fundamental reason when you look at the company to think it is worth $60.00 or more in the future?

Probably not worth $60, I think it was hovering in the mid teens prior to the squeeze, but I'm not qualified to make that assessment to be honest. But your right the "big squeeze" opportunity is likely passed, but everything I read still shows GME being heavily shorted so if there is a reasonable possibility a smaller squeeze happens and I can at least break even, why not? but again, I'm nowhere near qualified to make that assessment, I'm mostly relying on things I read and if it's on the internet....it's got to be true!! :)

**IMhooked** · 02-17-2021, 08:49 PM

Originally Posted by mastergun

IMhooked, thanks for the response. I'm embarrassed to say, I bought into the hype and was hoping for some quick easy money. I've never personally traded stocks, fortunately the delay in opening and funding a brokerage account saved me quite a bit of cash. I caught the GME stock on the way down and not up (it could have been much worse).

I've always just paid into my 401k and mutual funds, never really paid much attention to them. The whole GME thing got me interested in trading stocks. I've really started to find all of this very interesting, this is all fun money to see how I could, learn about the stock market and maybe make some cash in the process.

Chalk this up to a "lesson learned" or a Tuition paid of sorts...You learned something by doing and as long as you learn it's then not a full blown mistake.

Most successful investors who tinker with "play money" and scratch their itch with individual stocks, do so with 5% of their portfolio.

Investing is a long term game. Make a plan for 10-20 years that makes sense for you and your personal goals. If you drive in your daily life or workout I can't recommend podcasts or audiobooks like JL Collins "Simple Path to Wealth" enough. There's a ton of quality info to consume on getting off on the right foot when it comes to your financial future. Even the public library should have a pretty great consumable section if you search "finance". Free to check out!

Looking for the quick pay day is hard to come by.

It's awesome that you've become aware of the power that investing can provide. Learn about it as much as you can because no one will manage your money better than you!

When it comes to your current situation, cut your losses and get out would be my recommendation. The sooner you move away from this experience with GME the sooner you can start making the right moves on the path to wealth.

**TexomaDan** · 02-18-2021, 07:24 AM

When thinking about whether or not to stay in a stock, ask three questions.

1. Would I buy it today? Not selling has same impact as buying.
2. Does the company have the fundamental value to go up?
3. Do I have a better place to put the money?

This stock is strictly a gamble. Look at the five year chart.

**mastergun** · 02-24-2021, 07:06 PM

A quick follow up on this discussion. Since I didn't need the money and was okay if I lost it I decided to hold onto the stock and I'm happy I did. I bought in at $66 a share and just sold half of my shares at $169 a share. Sold enough shares to cover my cost basis plus around a 25% profit and still have half of the shares remaining. Hopefully, the price continues to go up tomorrow.

**Bassmaster96** · 02-24-2021, 07:18 PM

Why is it going up right now? I thought the pump was over

**mastergun** · 02-24-2021, 09:04 PM

Originally Posted by Bassmaster96

Why is it going up right now? I thought the pump was over

Honestly, not sure. Read some saying its hedge funds covering their shorts. Prior to all of this starting it was shorted over 100%. It closed regular trading at $91, went up to around $190 in extended trading. When I got on it was trading around $170 went up to about $180 and back down in the last 10 minutes. I sold just prior to extended hours closing.

There hasn't been a real catalyst that I'm aware of recently except for them firing the CFO early this week.

idbefishing · 02-25-2021, 04:47 AM

Smart move to take profits and leave runners. It actually touched $200

**Bassmaster96** · 02-25-2021, 07:25 AM

Originally Posted by mastergun

Honestly, not sure. Read some saying its hedge funds covering their shorts. Prior to all of this starting it was shorted over 100%. It closed regular trading at $91, went up to around $190 in extended trading. When I got on it was trading around $170 went up to about $180 and back down in the last 10 minutes. I sold just prior to extended hours closing.

There hasn't been a real catalyst that I'm aware of recently except for them firing the CFO early this week.

Agreed. Good idea to sell for sure, glad you did well on that trade

**OHellnofishin** · 02-25-2021, 10:34 AM

Gonna run again they shorted the crap out of it they dont learn...

**IMhooked** · 02-25-2021, 11:04 AM

Interesting read, especially how Big ERN compares WSB group to a pyramid scheme. So do valuations matter in the LONG run?!?! Gamestop Part 2

**OHellnofishin** · 02-25-2021, 11:42 AM

Originally Posted by IMhooked

Interesting read, especially how Big ERN compares WSB group to a pyramid scheme. So do valuations matter in the LONG run?!?! Gamestop Part 2

Valuations may be subjective shorting a company to its doom beyond the death of realistic valuation is also problematic

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Is GME dead? Sell or Hold