RE: last chance15 Apr 2022 10:46
Plutuq,
For me, this is something that PI's get too hung up on.
So called MM games, MM's holding the SP back, large orders getting filled in the background, PI's spending all day putting in dummy trades as if that is some sort of indicator, or poring over the direction of any large trade, etc.
These are all used as reasons as to why the SP is not flying up daily as PI's seem to think their share should be doing. Anything and everything is put under a microscope, whereas the simple reality is that markets are not rational, and outside factors, sometimes seemingly unrelated, can have as much impact as company specific news on the SP.
PI's think 10k is a large trade, whereas the market doesn't even blink.
Emotion and being too invested in 'your' share takes over from a rational viewpoint, at times.
MM's perform a function. Yes, they can report trades late, but need permission to do so. They do not deliberately hide trades as a matter of course just to play with PI's, or distort the 'real' SP.
As Bandb says, there is a thought that if you put on a limit then the shares cannot be allocated to a potential short, but there is little to no shorting on AIM shares, certainly not to the extent that posters on these boards would have you believe.
Shorts also aid liquidity in any case, and even if an II or Fund took out a short, there would most likely be no impact whatsoever here, unless several entities started doing it. Very unlikely here, imo
In all my time here, no one has ever provided any evidence that a PI can short a share, despite all the name calling and attempts to discredit other posters by calling them shorters. And a CFD, or spread bet is not a short in the sense of the word they use it.
There is a lot of paranoia on these boards. Myths and legends bandied about as fact (e.g. 1 code = RNS), extreme examples, or exceptions being touted as fact, and the norm, when that is not the case.
Some PI's on other boards request physical share certificates because they think this will 'help' prevent shorting, but will a PI holding even 1% of shares in issue really prevent an II taking a short position from the remaining shares in issue?
A lot of posters research their stocks inside out and seem to know everything about the company and management, but don't seem to know even the basics about markets, how they work, company responsibilities, regulatory requirements, etc.
Do your research.
If you believe in the company, the fundamentals stack up, and you can see progress from news and interviews, etc, then hold, or buy.
Keep an eye on things as shares like this can move quickly (and yes, down as well as up), but don't get to hung up on the small stuff.
What is important is to take responsibility for your investments, enjoy the rewards when they come, do not get too greedy, and be prepared to not be a winner all of the time.
All imo. Others will disagree with much of the above.
Enjoy the long weekend all
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