I'm not completely clear on how short selling works. So you borrow someone's shares for a small fee and give them back later.
In between then you sell them at the current price, then you do nothing for awhile and the price drops some more, then you buy them back, and the price stays low while you buy the huge amount that you sold back for less money than you sold them for, give the shares back and keep the profit.
So how do they buy them back again if they are the only ones selling? Obviously there must be other people selling too or they would not be able to cover.
How do they know that they will be able to buy the shares back from other people for less than they sell them for? That is so risky, and if you just buy their shares and hold them like I do then it won't even matter.
GXY have more margin leverage allowance whereas PLS only had it for diverse so I was planning to buy more GXY even though it would be averaging up, I've just watched it run up so quickly from $2.
Todays low of 3.41 puts as back near the end of October, but we can see that the price chart has been technically bearish since precisely the 4th of December.
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So I don't really know what to do but I liked GXY so far and I want to own more shares and to buy them for a price below where GXY will be in a year. I think I will buy a few more small parcels this week and see what happens with that.
