InvestorsHub Logo
Followers 9
Posts 1597
Boards Moderated 1
Alias Born 01/27/2014

Re: TheCleos post# 5413

Saturday, 12/10/2016 8:37:18 AM

Saturday, December 10, 2016 8:37:18 AM

Post# of 6624
RE:I wish I could wish these guys luck

I do. Just not good luck. If following the rules, it's legal. It's not for me. I suspect it takes a vulture, hawk, or coyote drive and mentality. That's not a big part of my DNA.

If you've never heard of the Kahn Academy, you should check it out. It is free and it has something for everyone. It's one of the best things on the internet. I occasionally get lost there for a long time.

The Kahn Academy has a pretty good section on Short Selling.
It won't make you a pro but it explains the mechanics. Be sure to watch all 4 videos including the last (Is short selling bad?).


The following is what draws my ire:

From investopedia.com - The Short and Distort: Stock Manipulation in a Bear Market

The S&D shysters try to profit by stimulating fear, but this only works if they have credibility. As such, when working online they will often use screen names and email addresses that imply that they are associated with the SEC or the Financial Industry Regulatory Authority (FINRA) (formerly the National Association of Securities Dealers), or that they can regularly spot worthless stocks. Their goal is to convince investors that every proponent of the stock has ties to the company and that the SEC is watching and will halt the stock. S&Ds also intimate that they are looking out for investors' interests.

S&D players clutter message boards, so optimistic information cannot easily be found. "Get out before it all comes crashing down" and "Investors who wish to enter a class action lawsuit can contact…" are typical posts, as are their projections of $0 stock prices and 100% losses. If their strategy is suspected by "longs", they attack the person who has caught them. In other words, the market manipulator will do everything in his or her power to keep buyers out of the stock and keep the price heading south.



How to Handle a Short Attack on a Stock You Own

First, let’s tackle the elephant in the room – stock manipulation.

Most investors are familiar with the phrase “pump and dump.” That’s what the SEC calls a form of financial fraud used to artificially inflate the price of a stock – usually a small-cap or microcap – for personal gain by distributing misleading and false statements. That’s the pump.

The dump comes later when the fraudsters suddenly sell their stock en masse and the price drops catastrophically, causing investors to lose their money.

It used to be done in so-called boiler rooms or small back offices like those depicted in the film The Wolf of Wall Street, but now it’s most commonly perpetrated via the Internet and chat boards.





















Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.