RE: Was a Bearclays trap laid today?9 Feb 2022 17:07
A reminder of my post at the weekend that has all the goons in a state of panick
RE: Multibagger from here 06 Feb 2022 18:04
As a short seller, you’re going to get caught in some bad spots.
This often results in attempts to convince yourself (and others) that upcoming profitable announcements are somehow a bad thing on a stock that has already priced in a scenario akin to a loss making report when reality is far from that situation.
Hence the incoming bear trap being set here.
A bearish catalyst, usually supported by bearish short-term price action, suggests that a trend reversal is imminent, prompting bears to put on large short positions at precisely the worst time.
The stock then moves to the upside, forcing many of the shorts to cover.
The short-covering makes the situation all the direr for the holdouts who held onto their shorts,
A bear trap is the culmination of several avoidable factors that can you leave ruined on the short side.
A bear typically loses multiple times their average risk per trade in a bear trap
Most traders in bear traps freeze when a stock shows signs reversing to the upside.
And because several other bears are stuck in the position as well, this has a magnifying effect on the trend reversal.
GLA