Phew I'm a little confused and am asking this community for clarification or at least a little light at the end of the tunnel:
First, a post by
@anatol Post #: 65423723 was moderated for "Unlicensed Advice".
Well, I read and liked this post before it was deleted.
This post had another 31 likes until it was deleted.
Can any of those 31 likers tell me what was "Unlicensed Advice" about this post?
My English language skills are apparently not sufficient to comprehend this....
Furthermore, some members here wrote that they are not allowed to accept an exorbitantly high sell-limt-order with the reason "too far from current price".
What???
These brokers prescribe you how high your sell order may be???
I could place 100 k shares for 1000$ at my broker and the order would go through without any problems...
Example:
Especially in the BioTech sector, an approved drug can lead to several hundred percent SP increase within a very short time.
Just assuming I'm planning a longer time out (world trip, ship voyage, etc.)
I must have the possibility to hedge my portfolio for the best case.
I would immediately change a broker who wanted to make me regulations in this regard...
Now to the short sellers:
If we small investors would make it impossible for the short sellers to sell our shares short, this would have almost no influence on the current events.
The total volume of all retail stocks is far too small to make a difference or have an impact here.
What matters here is what the big investors (let's call him XXX) are doing.
And they are in an incredible position of power.
Example:
XXX owns 200 million LTR shares.
He knows exactly what he has invested in because he has done his research (his homework) just like we have.
He therefore knows exactly where the SP will be in the next 15-18 months once clear sales/profits are accounted and the short sellers will definitely have cleared the field by then (if they are not completely stupid).
For XXX, whatever his name is, it has now become a win win deal.
He is lending out his 200 million shares at say 3% interest at a price of $2 (to make it all round).
So now he gets $12 million loan fee, watches the falling price with relish and in the meantime accumulates another many millions of shares.
After 12-15 months he demands his 200 million shares back and nothing has changed except that he now owns maybe 300 million shares or more and has cashed in 12 million loan fee and all that without any big risks.
He couldn't care less whether the short sellers risk their heads and necks and lose, because the short sellers must have deposited sufficient collateral before the loan.
Because one thing is clear:
XXX doesn't want $400 million back after the loan expires, but his 200 million shares!!!
Lithium prices shooting through the roof, takeover offers etc. are not his risk but that of the short seller.
And here "The sky is the limit" applies!
So I want to give everyone hope here:
At some point the bottom will be reached and things have to go up again, because we have all done also our research (homework) and maybe even used the current situation to accumulate.
This is not a purchase recommendation but a simple representation of my perspective...
There can be various losers in this macabre game:
Retailers who sell in panic, short-term speculators (I like to day trade myself and know what I'm talking about) who wait on the sidelines too long and then miss the express train, or some short sellers who completely get caught on the wrong foot...
Merry Christmas to you all!
(20min delay)
