First, take this to the bank, don't use stop orders. That info is available for those hostile to your success to use it against you.
Second, never mention size of buys or sales. Loose lips sink ships. Your info will be, not might be, it will be used to damage your financial interests.
Know the enemy. Some are brilliant type. Some are not. Respect them. Guard your info. Notice I don't mention numbers? Notice my timelines are 5 to 10 years?
Why today? Best way is to tell a story about what I believe happened.
Joe, at Really Smart Trading is a Market Maker. Joe has done extensive research into CYDY. He knows a total of three things. The Stock symbol; CYDY. The current stock price. And his cost in either his long or short position.
That's it. Three pieces of info. Joe is brilliant and Joe cant wait till the trade day ends because Joe deserves several adult beverages.
7 trade days ago Joe was offered a great deal; fill or kill, a buyer wanted 10,000 shares at lets say 4. Joe sold them. Joe is now short 10,000 CYDY.
10 minutes later the same buyer , giving the respect due to Joe came back and wants to buy 25,000 shares of CYDY at 4$.
Joe , a very bright fellow says, sure, 25,000 CYDY at 4; done deal
Now Joe needs even more adult beverages and deserves every one. He is now short 35,000 shares.
5 minutes pass. The CYDY price moves to 4.25$
Same buyer is back. This time 35,000 shares share buy at 4.25$ Joe, who just caught a we nip from a small sterling flask feels brave. Done deal. Really Smart Trading sells 35,000 shares CYDY at 4.25$
Its 4:00 PM. What a rough day Joe thinks. Shorted 70,000 shares of CYDY. I wonder what they do. Dine? Maybe its a restraunt chain? Oh well. it's adult beverage time.
Next morning Joe is shocked CYDY appears to have huge demand. Some bids are 5$. Joe takes a wee nip at 8:59AM then another at 9:29 just prior to CYDY trading.
What To ----, CYDY is now 6$
Joe is short 70,000 shares at 4 1/8 average. His manager gives him an evil eye. Joe sweats a tad.
What to do, Joe thinks, thinks; I'll double down. Joe lowers his offer. 6.01$
Wham, Joe sells another 70,000 shares. Bam. Now short 140,000 shares. Joe has the authorized trading limit of 5,000,000$ That 140,000 short at 6.01 represents 840,000$.
Joe sweats the hole day. Considers his options.
That night Joe wakes up with a nightmare. The coppers are hauling to the Paddy Wagon. By standers shout; He who sells what isn't hisin must buy it back or go to prison.
Joe is up early. On his trading desk early. Stock opens at 7. He doubles down again. Now short 280,000 shares.
This is how a authorized Naked Short gets backed into a suicide trade position.
Then , this morning the big time short sellers raid CYDY. They saved Joe. He covered at 6$. Joe is still in the bar as I type this report. Joe just called an Uber and is stumbling to the exit.
The fake news ; the drug does nothing report with their attorney ready to file another investigation. Total bull. Can you fake saving people?
I cant make up a better story about this. The truth reads like a dime novel.
What the Shorts bank on is a predetermined number of shareholders that don't know much more than Joe the trader.
I am not kidding.
When I was an Arb my group proved this, the % of shareholders that did not know what day it was. I gave that number of shareholders a derogatory name; "the idiot factor". My group made fortunes in arb deals because we knew this. That number was 10%.
The shorts obviously know this also. I would bet "the idiot factor" in CYDY is 10% or higher. The best way to not be in this group is to read every PR completely. You cant possibly read all the posts but some are very informative. Study and hard work go hand in hand with making huge bucks investing. So far , I have read all post. Some unbelievably humorous, I congratulate that poster.
Todays raid was very professional led by the brilliant type of short seller. It will not work if you do not panic and sell because of fear. Fear is their weapon. Remember every word of this post.
Don't be in the idiot factor.
Message to all shareholders. Don't be like Joe.
