What is difference between shorter and day trader? Day traders are looking for short term trades. They do far better trading both sides. Up and down, They usually use shorts to do downside. If you investigate you will find that most Shorter's are day traders. Many people on this board think shorters want to make stock go down. This is wrong and verry misleading. Their only objective is to make money. They short when they think there is a good chance of making money on down side. Not because they want to see stock go down. Just like regular holders think the stock will go up then buy.
Take a look at Shortman compare daily volume of shorts to shorts Outstanding this large ratio tells you most shorts are day trades.
The trouble with bot understanding shorters is it leads to not understanding what is actually driving SP changes. When stock goes down it is so much easier to just blame shorters than figure out why. That leads to bad decisions.
Take a look at today there were 1,26M shares traded about 0.13% of totall shares outstanding. We will have to wait 4 days but we will see about 45 M shorts out standing. Also look at price VS shorts outstanding. Sorts outstanding go up when stock goes up and down when stock goes down.
LYC Price at posting:
$7.08 Sentiment: None Disclosure: Not Held
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