So you just “raided” your first company: A letter to non-professional traders

Congratulations to “WallStreetBets”. Gamma trading is fun and anyone who has traded the market for the past three decades saw this coming. As capital markets look toward Monday and what is “priced in” to GameStop, something bad is happening. And if nobody says something, the consequences will harm everyone.

For background, I’m a portfolio manager who has been doing this since before 2009. This will be my third market cycle.

Zero Hedge has written extensively on market manipulation, specifically in commodity markets and equities using “boiler rooms” and high frequency trading algorithms such as the infamous “ignition trades” much of this knowledge has not been properly communicated or shared with “wall street bets” retail traders. A short squeeze is legal, but when a coordinated attempt at price manipulation is attempted, then it can be defined as a dangerous offense. This is a grey area. If you are new to finance, please study up on what happened when previous traders have tried to “corner the silver market” or the infamous Volkswagen trade or LIBOR manipulation. Unwinding and the liquidity drains on the larger capital market to solve these trades are dangerous.

continues at https://www.zerohedge.com/markets/so-you-just-raided-your-first-company-letter-non-professional-traders