Here is an interesting article about mind games that short sellers play.
otcjournal.com
There are times to be short and times to be long, even in the same stock. While I'm not always right on the timing and direction of every trade that I make, I am just as apt to being long a stock as I am short and I always have conviction that the trade is right. On some days, I might even change from short to long or long to short in the same stock. I don't think it makes sense to have a preference for shorting stocks because it unduly biases the way one thinks and inhibits opportunities. A few people on SI are predominately short sellers by their own admission. Most of us know who they are, and for the most part, they only post on threads where short sellers hang out.
Several short sellers on SI have used the tactics described in the article to try to wear me and others down on GUMM. I have no fear for them because I understand the company that I'm invested in, perhaps much more than them. One day they might short the wrong stock and lose a month's or year's worth of profits on a single trade. GUMM may very well be the stock that does it to them. I understand the risks of investing in GumTech, but it isn't a fraud and it isn't a scam. GumTech is simply a young, rapidly growing company, and they are going to take shots from short sellers until they prove themselves. The risk to reward is significantly in my favor and I sleep very well at night. If I was short even 1/20th of my position, I'd be a basket case. :o)
I would only sell GumTech for two reasons: 1. A negative change in the fundamental outlook; 2. A breakdown in the stock below major support. I have been trading small amounts of my position (did so today in fact), but my position has grown over the last few months and I intend to keep adding to it. Nothing that any short seller throws at me will cause me to sell even one share of my position in any stock. They are just playing mind games, and they have absolutely no effect on my buy and sell decisions.
I sincerely hope that none of you becomes a victim of the tactics described in the article for any stock that you own. My advice is to keep an open mind and evaluate everything that is said about your investments. Don't be stubborn to the point of overlooking what might be a real issue, but don't let the emotional games that many short sellers play cause you to make a decision for the wrong reason.
Best of luck to everyone,
Dan |
