Triple 000 and Sub-penny Chart Plays

[trader53]

ICNB - Borrow Shares to Short

To "Short" a stock, you "Borrow" shares,
from a Broker and then you Sell them, at the market price.

Your hope, is to buy back the shares
at a lower price in the future,
thereby "covering" the position
by giving back the broker his shares.



ICNB - Short Information

http://www.otcmarkets.com/stock/ICNB/short-sales

http://shortsqueeze.com/?symbol=icnb&submit=Short+Quote%99

http://otcshortreport.com/index.php?index=icnb&action=view#.Vm_UrOQo7cs

https://www.interactivebrokers.com/en/index.php?key=icnb&cntry=usa&tag=United+States&ib_entity=llc&ln=&asset=&f=4587&conf=am&amref=1



How it works

To Short a Stock - You need to be able to afford it.

Shorting a stock is very expensive.

To Short a stock, you "borrow" shares,
from a broker and sell them at the market price.

Your hope is to buy back the shares
at a lower price in the future,
thereby "covering" the position
by giving back the broker his shares.

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One Share will cost you $2.00

If you wanted to Short 10,000 Shares,
you would need $20,000 to do it -

So, if you wanted to Short 100,000 Shares,
you would need $200,000 to do it -


Most "Shorting" is carried out by hedge funds
and prime brokers,
with help from their friends at the DTC
and major clearinghouses.

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How a "Short Squeeze" happens !
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=124224658


Current Short Interest: 10,000 shares / $20,000

If the stock Climbed,
from the current 0.0002 to 0.0012
you would need to come up with $120,000


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For all intents and purposes,
let's say that ICNB, currently at 0.0002,
climbs to 0.0012


Let's say you Sell ICNB stock Short at 0.0012

But, instead of the price going down,
it goes up to 0.003
and appears to be going higher.

Now you're in trouble.

You need to cover your position and limit your losses.

You decide to buy ICNB shares as soon as possible
-- you and everybody else who shorted the stock.

This generates tremendous buying pressure on the stock,
and the short sellers rushing to cover their positions
only escalate the price increase.

Short squeezes
occur more often in small-cap stocks with small floats,
but they can occur with any stock.

http://www.investinganswers.com/financial-dictionary/real-estate/short-squeeze-2045

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