Mamabear, I have read what you wrote, what's the problem? That you dealt with it factually? Yes, indeed this is an example, if people want to address it to the original author, the Contrarian, fine. What did you say that was so bad? That he was taken in by hype? That's a fact, and facts are just what they are.
The only thing you said that I do think is in error, is that he blames only the bashers, and not his own DD, or margined account. The person does say that he got caught up in the "repartee on the boards".
Getting caught up in talk on the boards is something that does need to be guarded against. It is clear in their story that they were aware that people (what he calls bashers) were warning people about the state of the stock. He was aware of the critical views concerning his investment.
Actually, this is something that many Shorters do out of respect for longs. When they short a stock, at the same time they go to the message board and say they are short, or they tell people why they believe the stock is short. Doing this at the time of the Short, is not of any benefit to the Shorter. It won't change much of anything, other that give notice to some longs that may be entrenched in the hype. If people sell, it will limit the amount of shares that can be shorted.
Apparently, this Investor was trusting people that were over in the Raging Bull boards, there is absolutely no restrictions to how people can gain ids and passwords. It's known for being a "Pumpers Paradise".
Mama Bear, I think the reason that these people have so much issue with your posting of this link is:
For the first time these folks realize what the effect of hyping and pumping a stock has to the people they leave hanging at the top. Worse yet, are the people that are left with hope, and don't take actions to protect themselves.
"Its the big bad bashers, they are bad, good will win, stick it out, follow the story, its like a Disney movie, you can win with us, stay in, don't sell, we are nice they are mean spirited, we are your friends"
Its that type of commentary that type of tone used buy the pumpers or basher fighters. They locked this guy into something that he admittedly would have not done, if he did not read the message boards.
Its pretty simple, Shorters know they make money with the interaction of buyers and sellers. Its clear, Shorters are involved with a market were the placement of buys and sells and price points either make logical sense or do not, and determine the merit of opening a position coupled with the compelling fundamentals of the company involved.
But for the Long, the money is magical, there is no cause and effect. If they buy a stock at 1 dollar and sell at 25, and the stock never ever goes past 27, then the stock goes back to 10 bucks, for a year or two.....does this noble long have any compassion or understanding that they sold a security to another person, that will likely never see that money again. Generally NO. The longs do not think about the sale to the other guy. But look what they did, they sold something at an inflated price to someone who should not have bought that stock. To the long the other guy just does not exist, the sell to the market, not a person.
But again, the Longs don't need to think about the other guy, its not part of the bargain. The bargain is the Shorts are bad, Longs are good. Image the shock to the system if the Long had to deal with the reality of selling people shares at top, and taking the money and running away. To justify themselves they NEED TO BELIEVE that the Shorter is the bad guy.
Mama Bear, how dare you mess with their Fairy Tale.
Cheers |
