Stock Market Education, GameStop, and the Short Sellers

What my expensive education in the Stock Market tells me about this....
By Garnet R. Chaney, January 29, 2021

I bought a very expensive education in the stock market many years ago. I was doing day trading, and buying courses, and many books. My education had a later cost attached to it: The IRS asserting a tax bill of mid-8 figures against me. Yes, well into 2CCX land.

It seemed much more likely that the IRS bill was supposed to be a refund, that it made more sense than their number being a bill, I kept waiting to find out when they would hand me publishers clearing house sized check for the refund.....  It has been a painful process to get all that straightened out, and to prove that I actually lost a lot of money while learning about the stock market.

So I know a thing or two about the stock market. And I built up an entire wall full of books about the stock market, including references on algorithmic trading, programmed trading, (all of which I have practiced) etc.. As me any question you can about the stock market, and I can point you to the book on my shelf that says Yes, and at least one other book that says No..... All that makes Integration Marketing Society a bargain by comparison....

So recently when GameStop started hitting the news, I had not even really read any headlines about GameStop, so I had no clue. Someone sent me a 15 minute commentator video about GameStop. I had to stop at 90 seconds, the idiot blathered so much against short sellers, I could not listen anymore.

Short sellers are an important part of the market's feedback mechanisms and provide important liquidity in a free end open market. Anyone who doesnt get that is not worth my time to listen to, and is part of the "they" that don't want you to know things. I believe this on the same level as the axioms that we accept for mathematics itself.....

If you want a really good opinion on these things that I would trust, seek out Timothy Sykes. I have not had the time to check what he is saying on GameStop, but Tim knows what he is doing and won't steer you wrong. Timothy's courses were the best percentage of my education back in that life. Second would be Alexander Elder, and third, Brett Steenbarger, both psychologists turned day traders. They have written the best books ever on controlling the lizard brain urges that go exactly backwards to good strategy, and will derail your trading career, if those urges are left unchecked.

It's one thing to be in a market where everything is going up, everyone feels like a genius.  It's a whole lot different when the market is trading sideways, or declining. The volatility in sideways trading can wipe you out too, especially if you are looking at smaller time frames where things appear to be happening, but then seemingly randomly stop happening. Fighting the overall trend of longer time frames is a difficult situation. The books from Steenbarger and Elder will help you navigate those choppy waters.

I have earned some notoriety at in person stock market trading classes. When the teacher goes around the class having us introduce ourselves and tell about ourselves, I introduce myself as "Hi, my name is Garnet. I am an overtrader." The third of the class who gets it, giggles, and involuntarily says "Hi Garnet", those are the best people, if they happen to have fallen off the wagon, to party with at night after class, if you are into that sort of thing......

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