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Alias Born 07/08/2010

Re: thenegotiator post# 24515

Thursday, 07/15/2010 10:25:34 AM

Thursday, July 15, 2010 10:25:34 AM

Post# of 33233
Except that with shorting your potential loss is theoretically unlimited. If you borrow 100 shares at $1 and hope to buy them back at $0.50 you make $50. However if the stock skyrockets to $100 per share you now loose $9900 ($10,000 to buy them back, buy they gave you $100 when you opened the position), much more than the $100 in shares you borrowed. Since these pinks are know to have 100%+ runs I would think most would stay away for that 1 in a 1000 chance at losing A LOT.