News Focus
News Focus
Followers 123
Posts 16778
Boards Moderated 1
Alias Born 07/21/2006

Re: Howzie post# 55674

Friday, 08/25/2006 2:05:03 PM

Friday, August 25, 2006 2:05:03 PM

Post# of 169297
As I said B4. Shorts must use a margin to short a stock. Any US broker will not allow a trader to use their margin to short a stock that is under $5. Well this means a US trader can not use the margin to over-buy also. If you have traders selling and SHORTS selling short there are more sales than buys thus the shorts win by bringing the price down until the buyers outweigh the sellers. Since US traders make up the highest volume when the US markets are open penny stocks should be balanced with buys and sells, but they are not because the SHORTS make an imbalance by putting more sell orders in than their should be. It would make more sense for the SHORTS to overbuy and everyone wins TOGETHER!!!! The only way for the penny stock to rise is for the buyers to outweigh the sellers and that the SHORTS don't sell short or they buy to cover.

It's actually a really simple concept that I shouldn't even have to explain.

Discover What Traders Are Watching

Explore small cap ideas before they hit the headlines.

Join Today