Trytosaveabit
JESSE JAMES8832
OP
:
Dead accurate! That’s why a rapid and high price move on a heavily shorted stonk is a desirable thing! If the price goes fast way above the price that most people actually shorted the stock it can cause a couple of things to happen! First is that the short sellers get scared that they are losing to much. So they start buying back the borrowed and sold shares / we call that covering! This in turn causes price to rise more, because since covering is buying. It drives price up more! This can cause even more panic by short sellers and more start buying as price continues higher! Which can lead to the ultimate retail longs dream! That would be a squeeze! Because more buying drives price up because the demand is up! This is why legitimate short selling is risky! Shorting losses are technically unlimited because the price can theoretically just keep rising! And buying long, the maximum loss is only the amount you paid for the securities!
Trytosaveabit
Bigmoney Dreamer
:
I’m sorry yes To short a stock a person borrows shares from a broker at say 3.00 as share and they sell it! Now if it drop to 1.00 that might be where they buy it back or cover their position! Then the pocket 2.00 a share. Minus the fee for borrowing.
rennymc
Trytosaveabit
:
This sounds like too many numbers to keep track of. Do shorts just sit and pray each day that everything they’ve shorted doesn’t squeeze? I’m still trying to comprehend shorting. Good morning, btw!
Trytosaveabit
rennymc
:
Hehehe! Good morning! Im not sure how they feel because I’ve never shorted and never will! Yes you can make money! But it can drive good companies bankrupt. It’s also manipulated and used to cheat a lot!
Bigmoney Dreamer : Thy borrow to short more or buy the cover ?
JESSE JAMES8832 OP Bigmoney Dreamer : well im not an expert but i believe they buy to short and returning is covering
Trytosaveabit JESSE JAMES8832 OP : Dead accurate! That’s why a rapid and high price move on a heavily shorted stonk is a desirable thing! If the price goes fast way above the price that most people actually shorted the stock it can cause a couple of things to happen! First is that the short sellers get scared that they are losing to much. So they start buying back the borrowed and sold shares / we call that covering! This in turn causes price to rise more, because since covering is buying. It drives price up more! This can cause even more panic by short sellers and more start buying as price continues higher! Which can lead to the ultimate retail longs dream! That would be a squeeze! Because more buying drives price up because the demand is up! This is why legitimate short selling is risky! Shorting losses are technically unlimited because the price can theoretically just keep rising! And buying long, the maximum loss is only the amount you paid for the securities!
JESSE JAMES8832 OP : morning buddy hope the day is goin good for ya
Bigmoney Dreamer JESSE JAMES8832 OP : I think they rent to short and buying or returning later not short seller yet just researching bit about concept
Trytosaveabit Bigmoney Dreamer : I’m sorry yes To short a stock a person borrows shares from a broker at say 3.00 as share and they sell it! Now if it drop to 1.00 that might be where they buy it back or cover their position! Then the pocket 2.00 a share. Minus the fee for borrowing.
rennymc Trytosaveabit : This sounds like too many numbers to keep track of. Do shorts just sit and pray each day that everything they’ve shorted doesn’t squeeze? I’m still trying to comprehend shorting. Good morning, btw!
Trytosaveabit rennymc : Hehehe! Good morning! Im not sure how they feel because I’ve never shorted and never will! Yes you can make money! But it can drive good companies bankrupt. It’s also manipulated and used to cheat a lot!
MonkeyGee : must be crazy to short a 5 dollar stock!