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Re: peeved post# 70461

Sunday, 12/31/2023 11:28:39 AM

Sunday, December 31, 2023 11:28:39 AM

Post# of 84589
Please explain the logic in shorting a rising stock...Not that you can short it anyway. You can't. No brokerage will permit you to short penny stocks, and the stocks they will permit you to short require a margin deposit of around $2.50 per shorted share. Lets see, to short 100K shares, which is far too small to make any profit, it would cost you a quarter million dollars in margin. That is dead money until your buy closes. And, let's see, shorting is you betting the stock is going to drop a certain percentage, and you're betting that a rising stock, with a rosy-looking future is actually going to drop. Bye-bye margin.
Enough of the shorting penny stocks already. You simply can't do it. The reason you can't is because your brokerage won't permit it. And the REASON they won't permit it is that it is a waste of their time because they can't make any money at it.