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Thursday, 03/11/2021 11:02:57 AM

Thursday, March 11, 2021 11:02:57 AM

Post# of 112299
THINK PEOPLE THINK!!!PLEASE READ

S&D traders, on the other hand, manipulate stock prices in a bear market by taking short positions and then using a smear campaign to drive down the price of the targeted stock. This is the inverse of the 'pump and dump' tactic, whereby an investor buys stocks (takes a long position) and issues false information that causes the target stock's price to increase.

Generally, it is easier to manipulate stocks to go down in a bear market and up in a bull market. The 'pump and dump' is perhaps better known than the 'short and distort,' partially due to the inherent bullish bias built into most stock markets, and because of the media's reporting of the extended U.S. bull market that has generally been in play for the better part of three decades.

An S&D trader's main goal is to profit by shorting a stock prior to smearing the stock publicly. The theory is that frightening the stock's investors will cause them to flee en masse, thereby causing a decline in the stock's price. A short-and-distorter's scheme can only succeed if the S&D trader has credibility. Therefore, they will often use screen names and email addresses that imply they are associated with reputable entities, such as the SEC or Financial Industry Regulatory Authority (FINRA). The thrust of their message is to convince investors that regulatory authorities have serious concerns about the company and that they are contacting the stock's investors as a gesture of goodwill.

'Short and distort' traders clutter message boards, which makes it very difficult for an investor to verify the claims. "Get out before it all comes crashing down" and "Investors who wish to enter a class action lawsuit can contact …" are typical posts, as are their projections of $0 stock prices and 100% losses. Any individual or entity that attempts to contradict their claims becomes the target of their attacks. In other words, the market manipulator will do everything in his or her power to keep the truth from coming out and keep the targeted stock's price heading down