@nippy, in my example the $100 was JPM's total investment capital. And they don't use all of that for shorting, just $10. However our concern is the $10 "shorting" (AKA DT-ing) "investment" as that is affecting us ... adversely.
I also give you two analogies:
1- A brank has $1000 in total capital. $100 of that in cash/notes. it has 10 branches and each branch, say, dealing with $10 each a day. At the end of each day each branch transfers its profit (say 25c) to some safe central place. That leaves a branch with $10 for next day. Say someone robs the branch and takes some (say 50%-70%) of the money kept in the branch, that is they steal $5-$7. Does that burn the bank (not the branch) to crisp?!
2- You put some of your *spare* savings (*part of* your total capital) into the stock market. Say, you are a DT. Of course you would have followed the first rule of investing on stock market, that is, "if you can't afford to lose it, don't invest it" in other words "you can afford to lose it". Now on day-to-day basis you make some money (as otherwise you would have not still been here) and you take out your profit; either buy a beer, take your partner for dinner, buy another stock (not more of the same, cause you would break the rule of "not all eggs in the same basket") or buy a yacht and a mansion. Now, if that stock goes bust one day, would you lose your entire wealth? ... well you wouldn't lose the beer for starts, cause you already drank it, did the right thing by pissing in your veg garden and you are fetching good quality organic veg.
Now, JPM follows the investment rules by the books! They have written the books!
- Don't invest it if you cannot afford to lose it. They invest only part in shorting (a stock).
- They don't put all their eggs in one basket,
- They do not let greed lead them - this may surprise some! JPM no greed?!?!? They take small % profit - hence their bots are happy to move the price only by +/- 3% say (6% differential range) - all looking "normal" (and not disturbing ASIC's nice sleep) while they TAKE their profit - and it accumulates over intra- and inter-day fluctuations - from little things big things will grow, yeah?!. For the volume of daily trade in MSB, a few millions a day, they take home a few $100k a day!!! But in little bites through the day! Again, this is their profit out of just one stock.
- ... and all other rules ...
The trick is not to fall for their game and panic sell at low or or panic buy at "high" (that make you think this is it - take off)! We cannot out-smart them - that is, we cannot say, ok that's what the bots are doing and read their next move. They have built it into their algorithm taking care of some dude with 1st year uni level knowledge, or a couple of years experience in trading, who is trying to gate crash on their bots!!
(20min delay)