Some interesting reading, if you have the time:
Message 14360104
In the past, I've not hesitated to sell short (or exit a long position)when I thought the near-term direction of a stock was clearly down. Once, and only once, I went onto the thread of the stock that I was shorting, and stated that I was going short. I gave my reasons: It had had a huge recent run up, it was overbought on any number of indicators, price had formed bearish divergences, etc. I didn't assert that I knew better than anyone else about the near-term action of the stock: I simply stated that I was short and gave my reasons. A couple of days later, I covered with a reasonable gain and posted the fact.
I didn't call the stock a 'POS'. I didn't call management inept. I didn't accuse the longs on the thread of being misguided, ignorant sheep. In short, I didn't belittle the stock or the people who were invested in it. I made some money, big deal. I wonder now why I bothered to post that I was short on the thread. I certainly wasn't trying to 'protect' the longs! Hell, I suspect that whoever held that stock for the duration (I think it was COMS, but it was quite a while ago) has probably made many times my profit on that one trade.
My point: Shorting a stock is every bit as valid as holding it long; trading short term as valid as buy-and-hold, all depending upon your investment horizon and the amount of effort you care to exert in making money trading stocks. But when someone goes out of their way to bash (or hype) a stock, it may be an attempt to influence others.
If someone does this after taking a position (long or short) in a stock, they are attempting to manipulate price action. Regardless of the laws and their likelihood of enforcement, that type of posting is, in my opinion, dishonorable.
DWCraig |
