RE:RE:RE:RE:Too much ‘sh&t’No issues with this. The SP goes down when there are more sellers than buyers, and not because of "shorters" that so many seem to want to blame in some form of conspiracy. But Tcheck is correct, this trading behaviour by longs is some form of "short" selling because the objective is the same - end up making money on a drop in share price. (n
LastZaz wrote: Firstly, I did not blame anything on shorters or bashers. I was referring to this guy talking nonsense about longs being the ones to manipulate the share price. I actually literally directly attributed the sell off to profit taking and those looking to de-risk their investments while referring to the strong market drop we've seen in the last few days.
Secondly, I'm not sure what kind of strategy you have, but personally when I think a stock I am long on is about to dip after a massive gain in the span of days, I secure some profits, then add back to my position when I feel I'm getting better value and ultimately make a nice return on the spread between my sell and buy. This has worked fantastic for me over many years. And this price behaviour occurs with pretty much any stock with reasonable volume... the stock then bounces off a support line and goes back up on its upward trend - assuming it has an upward trend. I have made thousands of dollars trading LPX like this recently for example.
As an investor, this derisks my position, especially if I'm overweight on that particular position. As for "imagining if no one sold at $5.30+" that is incredibly silly. Investors will take profits after a huge runup. You can't control that - but I know they will take their profits and run which will cause the price to dip. So I secured some profit. And if I didn't, I'd be a lot more pissed the share price is $4.17 today. Not to mention I hedged that bet by still holding almost the entirety of my postion...
Instead I end up with a few extra thousand gain in my pocket to continue to use to grow my wealth on discounted stocks. You can still be long on a stock and secure gains accordingly. I'm trying to maximize my wealth, not prove my love for PYR.