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Thursday, 05/22/2014 12:07:20 PM

Thursday, May 22, 2014 12:07:20 PM

Post# of 17377
Short, Or Just Suspicious ?

When concerns are raised about a company, that goes against P.R. and irrational exuberance, the words "Shorty" and "Basher" are quick to be thrown around. Rather silly though.

You have to be well capitalized and VERY risk tolerant to short thinly traded penny stocks. First you need one of the few brokers that will allow it, then you need lots of extra capital to prevent margin calls, then you need the stomach to ride out big price swings.

Way over my head in terms of risk. Shorts stand to lose much more than longs if they are forced to cover at the wrong time, even if the stock does eventually crash.

So, do your homework, read up on these types of stocks BEFORE you buy.

Investopedia has a lot of good information.

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