Re KDR Chart, page-3127

The shorting increase is usually a symptom of the problem be it sector weakness, unsustainable rallies, trailing stops taken out on top of what you have identified. I have done some brief research ie. asking my stock broker that I use occasionally what it takes to open a shorting account. An entirely different process altogether and I have to run around and source the stock from holders willing to lend to me. The short cut way is to use CFD but derivative has a bad wrap from history of high profile failures while being cheap. Usually hybrid so the CFD broker can elect to trade against you with unhedged position or physically hedge it through their stock borrowing arm.

I have read that with real shorting, the quantity is in chunks of $50K value so no piddly algo style 1 share transaction. Again algo is another gripe among holders so anyone wanting to trade 1 share lots can apply directly through ASIC for a special brokerage licence, was told it was $25K process with audits before granting. Once approved, you don't pay brokerage and can use your algo to trade your heart's contend.

Unfortunately I have to disagree with you on the stop loss usage as a philosophy. How one does it whether a mental or physically placed it in the market have their pros and cons. Personally it is a nuclear option saying that the bull or bear is wrong on their decision. It is a capital protection not to dig a very large hole that will require 'time in the market' just to recover assuming there was an opportunity. I have not used them in the past thinking I knew where price was going with mix results. Some great rides up the blue sky that kept on giving with interim very uncomfortable destruction of the paper gain. Others especially the GFC rout took many years to try and get breakeven before finally exiting positions at no loss out of relief! Opportunity cost?

KDR had a 45% interim haircut from peak to yesterday's low so far. How would one feel buying at the top and watching your capital reduced by almost half along the way? Some in the cobalt sectors fared even worse. I don't know many who still feels comfortable even with money management let alone the averaging down method.

Personally these days before entering, I know at least how many % I will lose if I get it wrong through mistime entry regardless if the shorters are gunning for my stops etc. I am only interested in price not where I know the price will end up going regardless of the fundamentals. I too have a lot to learn psychologically and I hear about discipline all the time. I am not sure what it really means besides using an Algo do all the trading emotionless. We all have emotions even if we try to control them.

My latest was the Feb US selloff based on perceived change in fundamentals. When I wake up to 500+ dow sell off and I have exposure in the money, do I just calmly look at the headlight and pretend it is nothing. The heart already know that from a decade of muck chucked at the global economy, Grexit, Brexit, Euro perceived collapsed, taper tantrums and all the GFC reminders, it was time to be looking for good discounts but the brain says wait!

Interesting that your 50% fibs $1.40 held out yesterday. However at this stage I am not so sure without further evidence of follow through buying if this is just a pit stop on the way down or the reversal low. Good luck.