Yes GCar: When conditions are right you dump the short position (buy back your shorts on market) creating artificial buying pressure that hopefully triggers retail into FOMO frenzy. Ultimately creating profit for the long position you accumulated. You hit the media with overwhelmingly positive "development " that spreads like wildfire through media, twitter, etc. Like: new research shows that world will need 3x more lithium by 2025 than previously thought. And you watch it spread through Twitter and media like wildfire.
You kee talking about manipulation by shorters but: you are equally being manipulated into buying shares. How exactly do you think stocks reach mind blowing valuations than tank. You go up the hill on manipulation and land on the other side of cliff on manipulation.
Why don't you just buy stock when feeling confident instead of wasting capital locking capital into hedge where you can't make a profit or loss: You have to stop thinking like a single minded retail to understand what strategic plan aims to accomplish. A: Like I said: if you're trader on hedge fund desk and you're under by 20% your job and reputation depends on that stock moving soon, not in 5 years. So you MUST ensure you're not trapped trader depending on whim on the market.
b: I'll use rocket analogy: You bought a rocket and you are waiting patiently for launch to your destination. You can wait for years for that to happen or launch gets cancelled all together. Hedge fund trader buys the rocket and the fuel so the rocket can be launched when trader is ready. Fuel might lock your capital for a while but it's very useful when you want to propel something.
Anyway my point is: there are hundreds different strategies and ways both longs and shorts are used for trading strategies, options, futures, long/short hedges, etc. You're never gonna crack that nut by thinking with retail mindset. And without knowing who and what purpose shorts serve: you'll never know what they are opened for and how. Stocks going up or down are equally manipulated. It's the law of economics: you create demand = price goes up and vice versa
GXY Price at posting:
98.5¢ Sentiment: None Disclosure: Not Held
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