The Market Don’t Want No Short People

IWB ^ | LV

[davikkm]

Short people got no reason Short people got no reason Short people got no reason To live

They got little hands And little eyes And they walk around Tellin’ great big lies They got little noses And tiny little teeth They wear platform shoes On their nasty little feet

Well, I don’t want no short people Don’t want no short people Don’t want no short people Round here

– Randy Newman

Public sentiment is stacked against those who take short positions in the market. Shorting involves selling borrowed shares with the intention of buying the shares later in the open market at a lower price, thereby netting a profit in the process. Unfortunately, the “shorts,” as this group is commonly referred to, are frowned upon and find themselves at a decided disadvantage when they transact short trades.

The main reason for this attitude is that most market participants, such as mutual funds and retail investors, buy and hold stocks for the long term. Although some investors hedge their long positions by implementing shorting strategies, there is no stigma associated with shorting for this purpose. Indeed, it is considered a prudent measure to protect one’s investment. On the other hand, direct sell-then-buy shorting is scorned.

There is no sympathy for shorts when their trades work against them. In fact, there is palpable glee, a certain schadenfreude, when short traders (some would say, traitors) get washed out when they try to capitalize on the misery of stalwart long-term investors.

[umgud]

Danny DeVeto?

[metmom]

Short women have a much broader selection of men taller than them to choose from than tall women.

[sparklite2]

The most an investor can lose when he buys shares in a security is the total purchase price plus commissions. Conversely, a person who shorts a stock can suffer unlimited losses since the stock price can theoretically go to infinity.

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Remember this, chil’ren. If you buy a share, the most you can lose is what you paid for it. When you short a share, there is NO LIMIT to how much money you can lose.

[TheTimeOfMan]

Whatever. You bet high - you bet low. Playing only one way is idiotic.

[Vic S]

Shorting borrowed shares? To drive the price down they rarely have the shares but just short away. They are even allowed to counterfeit shares by selling otm calls.

[MeganC]

“Short women have a much broader selection of men taller than them to choose from than tall women.”

So true!!!

[montag813]

The ROKU short squeeze last week was a beauty. Watch VRX in the next few weeks.

[AlaskaErik]

One of the things I have always been grateful for is my 6’ 2” height. The only time it sucks is in coach or in a compact car. Not to mention a Miata or Fiata is out of the question for me.