NAKED SHORTING...MUST READ!!

[Stock Lobster]

I think people entering this market should be aware of all the risks facing them.

Yes, hedge funds may short the stocks they've just helped finance, but this wouldn't even be possible if the CEOs weren't usually collaborating to one degree or another. It's not necessarily a black and white picture of good versus evil.

The only thing that seems clear to me is that penny traders need to discount 90% of what they hear from the company, and hold the other 10% to extreme scrutiny. The game is rigged, but maybe the smarter traders don't take it on as a crusade, but rather make it their primary mission to emerge intact from their trading experience.

But it certainly helps to know where the landmines are buried ahead of time. I like to collect all this information simply so I can have a clearer idea of the odds that are stacked against me. It reminds me to stay humble and grab reasonable profits when they present themselves.