BRN 4.88% 19.5¢ brainchip holdings ltd

As an investor / trader, my favourite term I like when shorting...

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    As an investor / trader, my favourite term I like when shorting stocks comes to mind is 'unlimited risk'.

    You just need to have watched ‘The Big Short’ and have a credit card and you too can be Michael Burry.
    Even on a trade that’s currently winning, say you took $10,000 position at $1.00 on BRN (its clear by the poster activity when they got in so I would say not many have done this)
    Theres 12 months worth of interest (as BRN was last $1 a year ago), commissions and fees to come out of that.
    The 25-50% margin requirement means that shorter would need $2500 - $5000 cash reserve in account for margin calls)
    Gross profit to date: $8,300
    Net profit: $6,170

    Tax: 50% deduction > a year & depending on income particulars less say 25%.

    Win: $4627.00
    Whats lucrative about it? The most you can make as profit is 100% which may happen on one stock every decade.

    A years stress carrying a margin loan and clicking HC every hour to make sure you aren’t last to close your position.

    The ASX most shorted stocks lists chops and changes weekly so not being ahead of what bigger players are doing must suck.

    Are people really coming bagging this company coz they’ve made $4627 from it. Bahaha.
    One good announcement and that $4627 could have been a 15k loss.
    Seems there is a great deal of blind luck involved in shorting and theres many retail here doing it without research which is even scarier in my view.

    Open UP gaps like the one below would surely wipe out most retail shorters. This was Dec 2020. If its happened once, it can happen again.

    Can you handle a 43% short squeeze?

    https://hotcopper.com.au/data/attachments/5607/5607305-5dad261eae6e3f29d26aa89d7a4fb215.jpg
 
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Last
19.5¢
Change
-0.010(4.88%)
Mkt cap ! $366.5M
Open High Low Value Volume
20.5¢ 20.5¢ 19.5¢ $434.1K 2.158M

Buyers (Bids)

No. Vol. Price($)
25 1009611 19.5¢
 

Sellers (Offers)

Price($) Vol. No.
20.0¢ 524541 24
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Last trade - 11.14am 26/07/2024 (20 minute delay) ?
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