You'd better study up on how the market works, cause you're letting the short vs. long thing devolve into a bad vs. good thing. When you let that happen in your head, you're going to lose $$$--gaaaranteed.
Yeah, there are some really nasty shorts, as we have seen here, the ego-centric Pluvia in particular. We, of course also have some nasty, brook no criticism, longs--not here so much, in spite of what some have said, but certainly on RB.
You have to separate the retail shorter like we have here, from the MM's, who in order to keep liquidity in the markets, have to find stock to sell to you when you put in a "buy" order. If the shares aren't in inventory already, what do they do? They borrow the stock to sell to you--in other words, they sell you the stock you want "short." Even the retailer selling short is providing more inventory to put into circulation. WO the ability to do short sales, price swings and trade executions would be much greater--much like we see in extended hours trading. Of course if there aren't enough buy orders to absorb the sold stock, the price has to drop to restore equilibrium.
Cramer in the Street.com wrote a good article the other day explaining the process but lamenting that today, the order of the market is declining and volatility is increasing. The MM's are having a tough time--too bad <<gg>>--but they are less willing now to do the borrowing and taking the risk--hence more volatility.
I made a few k$$$ off EDIG today,long cause that's what I do, but EDIG really risky for now.
However, I'm curious what kind of bribes EDIG must have given to the the big cos. to issue the PR's touting EDIG's technology. There was nothing in it for them unless EDIG really has something to offer. To me, that's more important than the wonky exchange between burnsy and whoever. So the shorts better be nimble, because EDIG is no LOCK, BAAT or JAWS.
Jim |
