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Saturday, March 24, 2018 2:37:36 AM
Short Squeeze - Explained
Slap-the-Ask and Your stock will Climb FAST !
_________________________________________________________________
What is a Short Squeeze ?
A Short Squeeze is where The Shorts ,
(Traders that Profit as a stock Declines)
Get Burned !
Listening Recording: Stock Shorting
How much does it cost, to "Short Penny stocks"
https://claytrader.com/podcast/episode121/
https://claytrader.com/podcast/episode120/
Educational Post: Every Penny RUNNER Has These Guys!
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=138994675
Quick Easy To Understand - Explanation
http://www.investopedia.com/video/play/short-squeeze/
Short Squeezes - Explained
http://www.investinganswers.com/financial-dictionary/real-estate/short-squeeze-2045
* 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
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=113157377
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 XYZ 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 XYZ stock at 0.0006
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 XYZ 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.
http://www.investinganswers.com/financial-dictionary/real-estate/short-squeeze-2045
________________________________________________________________
Educational Post: Every Penny RUNNER Has These Guys!
Paid Bashers / Short Attack
DEFINITION of Stock Basher
An individual, either acting alone
or on behalf of someone else,
who attempts to devalue a stock
by spreading false or exaggerated claims
against a public company.
After the stock's price has dropped,
the basher, or the basher's employer,
will then purchase the stock at a lower price
than what he or she believes
it is intrinsically worth.
This is an illegal activity
that can carry significant legal repercussions.
The basher generally benefits
on how effective the negative rumors are,
which can dramatically affect a stock's value.
If an investor believes the false claims,
he or she may sell off the stock
at the higher price before it falls.
The basher will then purchase the stock
and ride out the gains.
http://www.investopedia.com/terms/s/stockbasher.asp
Market manipulation
Stock Bashing
This scheme is usually orchestrated by
savvy online message board posters (a.k.a. "Bashers" )
who make up false and/or misleading information
about the target company in an attempt to get shares
for a cheaper price.
This activity, in most cases,
is conducted by posting libelous posts
on multiple public forums.
The perpetrators sometimes work directly
for unscrupulous Investor Relations firms
who have convertible notes
that convert for more shares
the lower the bid or ask price is;
thus the lower these Bashers
can drive a stock price down
by trying to convince shareholders
they have bought a worthless security,
the more shares the Investor Relations firm receives
as compensation.
Immediately after the stock conversion is complete
and shares are issued to the Investor Relations firm,
consultant, attorney or similar party,
the basher/s then become friends of the company
and move quickly to ensure they profit
on a classic Pump & Dump scheme
to liquidate their ill gotten shares
http://en.wikipedia.org/wiki/Market_manipulation
Paid Bashers
The shorts will hire paid bashers
who “invade” the message boards of the company.
The bashers disguise themselves as legitimate investors
and try to persuade or panic small investors
into selling into the manipulation.
This is not every dirty trick that the shorts use
when they are crashing the stock.
Almost every victim company experiences most or all
of these tactics.
The Anatomy of a Short Attack
Abusive shorting
is not a random act
of the renegade hedge funds,
but rather a coordinated business plan
that is carried out by a collusive consortium
of hedge funds and prime brokers,
with help from their friends at the DTC
and major clearinghouses.
Potential target companies are identified,
analyzed and prioritized.
The attack is planned to its most minute detail.
The plan consists of taking a large short position,
then crushing the stock price,
and, if possible,
putting the company into bankruptcy.
Bankrupting the company is a short homerun
because they never have to buy real shares to cover
and they don't pay taxes on the ill-gotten gain.
When it is time to drive the stock price down,
a blitzkrieg is unleashed against the company
by a cabal of short hedge funds and prime brokers.
The playbook is very similar from attack to attack,
and the participating prime brokers and lead shorts
are fairly consistent as well.
http://counterfeitingstock.com/CounterfeitingStock.html
Slap-the-Ask and Your stock will Climb FAST !
_________________________________________________________________
What is a Short Squeeze ?
A Short Squeeze is where The Shorts ,
(Traders that Profit as a stock Declines)
Get Burned !
Listening Recording: Stock Shorting
How much does it cost, to "Short Penny stocks"
https://claytrader.com/podcast/episode121/
https://claytrader.com/podcast/episode120/
Educational Post: Every Penny RUNNER Has These Guys!
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=138994675
Quick Easy To Understand - Explanation
http://www.investopedia.com/video/play/short-squeeze/
Short Squeezes - Explained
http://www.investinganswers.com/financial-dictionary/real-estate/short-squeeze-2045
* 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
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=113157377
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 XYZ 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 XYZ stock at 0.0006
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 XYZ 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.
http://www.investinganswers.com/financial-dictionary/real-estate/short-squeeze-2045
________________________________________________________________
Educational Post: Every Penny RUNNER Has These Guys!
Paid Bashers / Short Attack
DEFINITION of Stock Basher
An individual, either acting alone
or on behalf of someone else,
who attempts to devalue a stock
by spreading false or exaggerated claims
against a public company.
After the stock's price has dropped,
the basher, or the basher's employer,
will then purchase the stock at a lower price
than what he or she believes
it is intrinsically worth.
This is an illegal activity
that can carry significant legal repercussions.
The basher generally benefits
on how effective the negative rumors are,
which can dramatically affect a stock's value.
If an investor believes the false claims,
he or she may sell off the stock
at the higher price before it falls.
The basher will then purchase the stock
and ride out the gains.
http://www.investopedia.com/terms/s/stockbasher.asp
Market manipulation
Stock Bashing
This scheme is usually orchestrated by
savvy online message board posters (a.k.a. "Bashers" )
who make up false and/or misleading information
about the target company in an attempt to get shares
for a cheaper price.
This activity, in most cases,
is conducted by posting libelous posts
on multiple public forums.
The perpetrators sometimes work directly
for unscrupulous Investor Relations firms
who have convertible notes
that convert for more shares
the lower the bid or ask price is;
thus the lower these Bashers
can drive a stock price down
by trying to convince shareholders
they have bought a worthless security,
the more shares the Investor Relations firm receives
as compensation.
Immediately after the stock conversion is complete
and shares are issued to the Investor Relations firm,
consultant, attorney or similar party,
the basher/s then become friends of the company
and move quickly to ensure they profit
on a classic Pump & Dump scheme
to liquidate their ill gotten shares
http://en.wikipedia.org/wiki/Market_manipulation
Paid Bashers
The shorts will hire paid bashers
who “invade” the message boards of the company.
The bashers disguise themselves as legitimate investors
and try to persuade or panic small investors
into selling into the manipulation.
This is not every dirty trick that the shorts use
when they are crashing the stock.
Almost every victim company experiences most or all
of these tactics.
The Anatomy of a Short Attack
Abusive shorting
is not a random act
of the renegade hedge funds,
but rather a coordinated business plan
that is carried out by a collusive consortium
of hedge funds and prime brokers,
with help from their friends at the DTC
and major clearinghouses.
Potential target companies are identified,
analyzed and prioritized.
The attack is planned to its most minute detail.
The plan consists of taking a large short position,
then crushing the stock price,
and, if possible,
putting the company into bankruptcy.
Bankrupting the company is a short homerun
because they never have to buy real shares to cover
and they don't pay taxes on the ill-gotten gain.
When it is time to drive the stock price down,
a blitzkrieg is unleashed against the company
by a cabal of short hedge funds and prime brokers.
The playbook is very similar from attack to attack,
and the participating prime brokers and lead shorts
are fairly consistent as well.
http://counterfeitingstock.com/CounterfeitingStock.html
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