****MUST READ****
If you are kinda new to this pay attention, If you have been trading OTC's for decades then stop reading here this will be elementary info.
All the shorting talk is fun...but lets make some stuff clear.
This is Fact:
#1. No individual traders short Sub-.05 OTC stocks in any sizable amount. And shorting sub 01 OTC stocks is by individuals is basically non existent.
Its not only hard, but unlikely, to even find a broker that will borrow sub .05 OTC shares to short, and even if a broker was willing, the cash requirements are so outrageous, a person would need multi-millions in collateral cash just to short $10,000 worth of that stock. In other words, the risk would never justify the reward. Financial suicide.
#2. Anyone with the insane amount of money needed to fulfill margin requirements to short a sub 01 OTC, even if they found a broker that would borrow them shares would be SO STUPID on SO MANY levels, no one would do it.
I have been trading for many years.. I have read and heard all the short stories, but in the end its all bullchit and people lie.
#3 If there were active traders shorting subbers on the OTC, dont you think there would be some proof somewhere? Find me one single Post, ihub board, the name of a broker to call, or traders that have posted a screen shot of a winning trade shorting a subber on the OTC? ..you wont find proof, because it doesn't exist. If you go looking you are more likely to find a unicorn 1st.
#4 People often look at the short report on the OTC, and mistakenly think that must mean someone is shorting the stock. The truth is, every security bought or sold has a 3 day clearing period. That short number only reflects shares within that 3 day clearing process. So, basically if you buy 500k shares tomorrow, they will show on that list as short for 3 days till the broker settles the trade between the parties involved in the transaction (buyer/seller) then that 500k shares bought monday will drop off the short list Wednesday. In other words, ALL unsettled trades are considered short.
I... and anyone else can show you all sorts of proof that traders make big money going long on OTC subbers.. But no proof of shorting subbers. With the way traders love to boast and brag...all the social media and day trading sites.. surely someone would post proof if, in fact, there was any.
So in other words this big mike guy on twitter is a fake making up lies just to get some attention. Sleep well no one is shorting subbers!
And, If someone says they are shorting subbers on the otc ...ask what broker they are using..that will end that lie fast lol
AI
