@Dickie, Can you please stop these elongated posts which are bordering on lunacy. Suggesting RMG will rise to £13.20 by January could be misleading to a gullible reader. Last January I advised posters to bail out of this stock at £6.00+, you obviously didn't take my recommendation.
Spot on. All that QE money replaced what the banks had to write off so the economy basically had the same amount of cash in it. We certainly didnt benefit - as usual. The bankers are greedy and unfortunately cosy with the politicians so they always come first (just not in public)
No need to apologize, I can empathize with your frustration in seeing your investments suffer a drop. We have all been there (alas!) Certainly, but going long is also a proven dangerous game, as people who bought in here at circa 600p have discovered to their cost. What market makers thrive on is volatility. If exogenous events do not stir them, then market makers' machinations will (hence the Libor rigging scandals, the gold and silver price fixing etc). These guys want an edge, and because they do not suffer any personal consequences (they gamble with other peoples money, never their own) they will perform the most monstrous and outrageous wagers knowing that they are free to walk away if they get it wrong. As small retail investors, we need be aware of this, because government and the institutions that run this operations give people like us no latitude whatsoever. Where do you suppose all that QE money went? Not in my pocket. Not invested in the real economy. Who screwed this up and who got saved? Finance. Not the real economy. And who had the first and last laugh.... who else?
I think that your system is all theory with hindsight and pot luck. When I bought at 490p after shares had fallen from 600p+ I thought they would rocket instead they just continued to fall!!! In your example when shares are rebought at 3.8 what if they continue to fall and don't rocket? The simple fact is whether buying or short selling, you don't make a profit until you get the extra cash in your hand.
Short selling is easy, all too easy, and is one reason why stocks can plunge tremendously. It is also a way that markets makers use to push down the price deliberately in order to 'flush out' shares by trigger stops. I would learn how these methods operate as they will inform you what kind of marketplace you are dealing with (essentially a kind of crooked casino over which you can express an opinion, but have no influence over whatsoever). PS. I shorted this stock some time ago at 598 an got out too, too early at 560). We are not investors here who make markets, but gamblers and con men.
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