Former market maker J.J.’s back to share insight on the GameStop Corp. (NASDAQ: $GME) debacle and more!
Tim Bohen’s away living out a long-time dream. So today, hosts Kim Ann Curtin and Stephen Johnson grill J.J. with listeners’ questions…
But first, they’re picking this former market maker’s brain about the insane action we saw in the $GME debacle. Remember that epic short squeeze and the broker trading restrictions that followed?
You definitely don’t want to miss what he thinks is really going on…
And if you missed J.J’s first appearance on the podcast, go back and listen to episode 179 to hear him share secrets of market manipulation that blew our hosts’ minds. It’s one of our most-viewed episodes of all time.
The $GME Debacle
Today, J.J. breaks down the $GME short squeeze and what he didn’t like about the price action when it was up.
Were the WallStreetBets traders right about their $1,000 price target? J.J. agrees the stock should have gone that high … if there wasn’t something else going on.
So how does he know what he’s talking about? Well, as J.J. tells Kim and Stephen, he used to get paid $200K a month to pull off the same thing the WallStreetBets traders were trying to do. He used to be a mechanic of these kinds of plays.
His spidey sense is tingling, telling him there’s something fishy going on here…
And people aren’t talking about it because it sounds like a tinfoil-hat conspiracy theory.
Will Hedge Funds Want Revenge?
Stephen asks if the hedge funds might strike back against retail traders after the $GME squeeze took them out.
J.J. doesn’t think so…
He explains that when Wall Street hedge funds blow up, it’s not the same as retail traders. They just take time off and maybe travel. Then when they come back, a prime broker will likely lend them more money.
Hedge funds aren’t trading their own money — it’s other people’s money. It’s a job for them.
Tune in to hear what J.J. says is the biggest difference between institutional and retail trading…
The $GME Debacle and Brokerage Shutdowns
What about brokerages shutting down trading in certain stocks after the $GME debacle?
J.J. says it’s “criminal.”
And what does he think is the real reason for the shutdowns? He has his opinions…
Ultimately, he thinks the brokerages should be honest with their clients. J.J. reflects on the current market and compares it to the Roaring ‘20s — it makes him nervous.
Kim wants to get to the bottom of the payment for order flow business model that brokerages work under. Tune in to hear J.J. describe how it all works.
It’s a lot to take in…
Listeners’ Questions About the $GME Debacle
Kim digs into the listener mailbag to ask J.J. your questions…
What’s his advice for new traders caught in the $GME debacle? He says trading is a skill you develop over time. To him, traders are better off in the long run to take time and learn what’s going on behind the chart.
Does he think other hedge funds were jumping into $GME with the retail traders?!
Tune in to find out what he thinks, when market makers dump shares, and what’s most important when deciding on an entry.
And he has closing advice for listeners to avoid paralysis by analysis and much more.
What Do You Think?
What do you think is the real story behind the $GME debacle? Let us know your thoughts in the comments.
Remember: if we select your question or comment as an on-air topic, you could win a SteadyTrade mystery gift box. Leave a comment below or on YouTube!
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Kim Ann Curtin