Short sell can be through Borrow tickets from major shareholders. (The lender) Usually, after selling for cashing out , the share will bounce back to the level it deserved.
A dump for pump is totally different scenario, after jiaow cho will disappear and the share price will sleep straight straight like salted fish ; eg. Sgb & etc.
Short down, they earn, share back to fairly traded level another gaun. Usually, lender rely on a surely happening catalyst to help re- stimulate the share price.Unless some time there are string challenger show up, who manage to share the cake then lender loss.
"Short selling often occur in stock market due to the benefit below:
1)Short seller and lender make money in certain ratio (negotiable) 2)Lender believes the counter he holds will enevtually show good figure and enjoy share price appreciation 3)Stimulate the trading volume to garner market attention"
That is why Lender will only sign the agreement "if" and "only" if the counter is has potential to uptrend AND his initial buying cost is way below post short selling activity.
It's is common and involve risk. For those without share appreciation ability we could only see pump and dump......
Duit, if point 2 is the key, if lender believe the counter will eventually show good figures, the share price will likely surplus RM 4 right? the paper value will be greater if not forcing (by short sell) the share price to dive. It is burn own pocket.
However, when there is very obvious SELL ON NEWS themed play and LENDER knew if he did not sell other will sell. Might as well don't sit idle but do something. This is my thinking.
Posted by YiStock > Jul 29, 2016 08:57 AM | Report Abuse
Duit, if point 2 is the key, if lender believe the counter will eventually show good figures, the share price will likely surplus RM 4 right? the paper value will be greater if not forcing (by short sell) the share price to dive. It is burn own pocket.
Cannot mention 2 counters I meet up their Major shareholder (owner) frequently......... both also billion Revenue company with perfect CAGR for last 10 years.
Let give U clear historical example. One stock use 1.5 year to climb from RM3.5 to RM4.5 on news they sell on news and owner press down to RM3.98 with small money but retailers panicking dispose and make it landslide to RM3.60.
Owner bought back big sum and the share price rise back to RM4.50 after 5 months.
Key points here: Last time use 1.5 yr to earn RM1... Now use 5 months gain bigger money (because shares unit become BIGGER). This is not the example of short selling but to share why "owner" wan to burn his own pocket money. In fact, what we see is because we never factor in timeline concept.
yup.. I still believe in value investment. short term and mid term is for fun only..... I am very FA based........ but discuss more short term in i3 (to suit major appetite)..........
I never see short term or mid term investors enter Forbes Top 100 Richest Billionaire.... Forever will not believe it.
That's why PAS so against gambling whether in casino or Bursa. For someone to gain(short sellers) someone else must lose. If you are losing party will you be happy? Hence under BN a lot of shooting cases or commit suicides recently. It could be gambling related although unspecified.
Duit, thinking back, your above article maybe more relevant to your below scenario.
"taking advantage of retailer fearful mindset..人丢我丢。。自己吓死自己"
Initially i thought short sell = buy "short"
duitKWSPkita: YiStock...
Cannot mention 2 counters I meet up their Major shareholder (owner) frequently......... both also billion Revenue company with perfect CAGR for last 10 years.
Let give U clear historical example. One stock use 1.5 year to climb from RM3.5 to RM4.5 on news they sell on news and owner press down to RM3.98 with small money but retailers panicking dispose and make it landslide to RM3.60.
Owner bought back big sum and the share price rise back to RM4.50 after 5 months.
Key points here: Last time use 1.5 yr to earn RM1... Now use 5 months gain bigger money (because shares unit become BIGGER). This is not the example of short selling but to share why "owner" wan to burn his own pocket money. In fact, what we see is because we never factor in timeline concept.
Posted by Undi_PAS > Jul 29, 2016 10:04 AM | Report Abuse
That's why PAS so against gambling whether in casino or Bursa. For someone to gain(short sellers) someone else must lose. If you are losing party will you be happy? Hence under BN a lot of shooting cases or commit suicides recently. It could be gambling related although unspecified.
Thanks duit very informative. I think if going for long haul that wouldn't affect much ; only kena contra kakis that glued on the screen. BTW I dun vote PAS regressive party which shed no light on advancement or development.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
duitKWSPkita
26,756 posts
Posted by duitKWSPkita > 2016-07-29 00:36 | Report Abuse
不是每个人都有开窍的慧根。。。。
很多时候都是环境逼人。。。我从小就经历很煎熬的生活,所以生活技能和适应能力都强一些。。