Replies to post #109215 on Discovery Minerals LTD (DSCR)

[Homebrew]

Financial common sense debunks the shorting myth, especially in trips. "Doing the Math" of risk-reward, plus fees and margin requirements shows shorting penny stocks to be financial nonsense 99% of the time.

Math Example: Shorting 1 Million shares at $.01 = $10,000 maximum gain if stock goes to $0. Margin requires $2.50 per share, or $2,500,000 deposited in your margin account. Show-stopper right there for most people.
That $2.5 Million is to protect the broker if there's a price spike, meaning that amount is at risk.

You could put $2.5 Million in a savings account at 2%/year and make $50,000 risk free.

[Magnum7419]

Math Example: Shorting 1 Million shares at $.01 = $10,000 maximum gain if stock goes to $0. Margin requires $2.50 per share, or $2,500,000 deposited in your margin account. Show-stopper right there for most people.

[Magnum7419]

Short volume in the 90s ?