GREY:PMVGF - Post by User
Post by
flushbreakeron Jul 11, 2013 11:18am
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Post# 21601619
Shorting
ShortingI have to disagree with you, and to be upfront about my position, I used to short regularly as a proprietary trader, but not so much anymore as someone who simply trades their own account fairly lightly. Your example about someone accessing your bank account is innacurate because with shorting , the shares MUST be bought back and returned at some point (unless company A no longer exists), thus equal buying and selling pressure to the market. One thing I do feel very strongly against is Naked Shorting, which should certainly be illegal and banned.
I'm a firm believer that if a stock is too expensive the market will eventualy correct this, similairly to if a stock is undervalued. Without short-selling stocks would likely climb to far in many cases...there has to be some way to keep a handle on upward momentume as well...