Hi AverageJoe
I agree with you. You make some great points. Don't get me wrong, i have no idea what the top or bottom of any stock or sector will be, no one does, not even insiders. They also get it wrong at times. I just like to to get set , when I feel the time is right, based on the criteria i use and have over the years of trading. That could be either long or short. I do at times go short if feel the sitution is really warrented, but only on rare occasions. Mainly if something is techicnally trading at level i feel is at bubble prices and that the vaulations are way overstrectched, using my crtieria. That all said. All short sellers at some point end up covering their trades. This is where the real fun happens. Not only do we have new buyers entering the stock, thinking they have to buy now or miss out. But we have the short sellers in panic mode covering their trades. Thinking if i do not cover now, my profit will demish. And those that have no choice but to minimise the loss. I have seen it before when worthless stocks can have massive rallies based purley on short coverings. That said, the name of this game is to make money. The key is to not get emotioanlly attached to anything, try to make some money on the downside your self. Many complain about lack of long term investing in the ASX and that the markets are manipulated by short term traders, shorters and that it is especailly worse these days. Well sorry to say, it has always been like this ever since i can remember. When we are down money, we tend to think irrationaly (a conspiracy), that the world is against us. When we are up money the opposite happens. We can either learn to use market psychology in ou favor or against us. If this is what and how the markets is and has always been, why try and fight it or complain. It is not going to change. Just go with the flow and join in. That all said, would i be shorting BCI right now, absolulty not. Have we seen the bottom probably not. Would i be buying at these levels, yes i would. Why have i not bought. I already own many other stocks and cant be in everthing. Cheers.
(20min delay)