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Sunday, December 17, 2017 7:05:05 AM

Re: trader53 post# 72791

Post# of 226037
ANDI - Short Squeeze - Explained

Educational Post: What is a Short Squeeze ?

What is a Short Squeeze ?

Quick Easy To Understand - Explanation

Short Squeezes - Explained

* The "Shorts" will Buy after you Buy,

because they have to Cover their "Short Positions" !

* They lose money as the stock climbs !

* Your Buying, Forces them to Buy,

and their Buying, causes the stock to Climb Higher !

The possibility of a "Short Squeeze"

Short Squeeze - What it is:

A short squeeze
occurs when the stock's price doesn't decline as anticipated.

A short squeeze is a situation in which
a stock's price increase
triggers a rush of buying activity among short sellers.

Short sellers must buy stock
to close out their short positions and cut their losses,
which results in a further increase in stock prices,
which compel still more short sellers to cover their positions.

The possibility of a "short squeeze"
is one reason some analysts
look at a high amount of short interest
as a Bullish Indicator.

Short Interest is the fuel,
performance is the fuse,
says ShortSqueeze.com

- USA Today


A Short Sale reverses the normal
buy first/sell second sequence
as a way to profit from
an anticipated future fall in price.

An investor borrows shares of ANDI from a broker
and sells them at the market price.

The investor hopes to buy back the shares
at a lower price in the future,
thereby "covering" the position
by giving back the broker his shares.

Instead of the traditional "buy low/sell high",
an investor seeks to "sell high/buy low".

A short squeeze occurs
when the stock's price doesn't decline as anticipated.

For example,
let's say you Sell Short ANDI stock at 0.0003

But, instead of the price going down,
it goes up to 0.0013
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 ANDI 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.



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