Stocks that are purchased in the same security as a result of gains from previous trades of the security that happen to cover the full price of the new purchase. Essentially, no money was lost on the prior positions and the new position is sort of like free play money.
Example (in the name of the reddit revolt against market manipulators and free trade). Homer buys 10 stocks of GameStop (GME) at 200.00. Homer later sells 10 stocks of GameStop at 300.00 for a net gain of 1,000.00. Now Homer buys 5 stocks of GameStop with the 1,000.00 profit from prior sells of the stock and has no concern as of which way the market takes these stocks.
Example (in the name of the reddit revolt against market manipulators and free trade). Homer buys 10 stocks of GameStop (GME) at 200.00. Homer later sells 10 stocks of GameStop at 300.00 for a net gain of 1,000.00. Now Homer buys 5 stocks of GameStop with the 1,000.00 profit from prior sells of the stock and has no concern as of which way the market takes these stocks.
I'm trading playdoh on GameStop today while I watch the manipulators get squeezed and the corruption of the market brokerages, lenders, etc. come to light.
by buht January 29, 2021
Get the playdohmug.