Fear, Uncertainty & Doubt (FUD)

Fear, Uncertainty & Doubt (FUD)

These 3 things comprise the Modus Operandi of a Short Seller, Paid Basher, aka Down Ramper. I have a lot of experience dealing with these type of individuals predominately in U.S. markets.

The psychology is interesting. They are contrarians at heart, and given the last 10+ years of stellar bull market returns are usually quite desperate to capitalise on every opportunity that they can. This is often the deep seated source of their vitriol, and ironically where they tend to come a cropper.Rather than seeking incremental gains, and being patient. They swing for the fence, and occasionally connect, but instead of 1 home run, they want 10 to make up for all of the previous short squeezes that caught them out. E.g. a stock is down ~40% in 2 days on revised guidance, and they're still holding short for more...

When you understand the mindset, it's easier to relate to the individuals that you are dealing with.I picked up a few thousand shares at the close for a swing long. With Mean reversion, the risk is now to the upside. Sure, it could drop further, or end up at zero (like any stock), but it's highly unlikely.

"Buy when there's blood in the streets, even if the blood is your own" (Baron Rotschild)



Caveat: I have deep pockets, and an unlimited time horizon, so be cautious if you are following my lead, and in general be very skeptical of any advice or suggestions you get on a stock forum.