RE: Know when to fold them12 Feb 2023 14:03
@Carltt: Shorting is a necessary function and makes Capitalism tick. It keeps businesses honest, prevents stock market bubbles and provides balance. If you are long term don’t worry about the peaks and troughs, it will balance out in the end. Even the pension funds will loan out their shares for a fee, knowing that ultimately it will drive the price down. They don’t mind, as they are in long term with 5-10 year horizons. It could be worse, in the old days, companies used to short shares that they didn’t even have in their possession known as Naked shorting. At least now they have to have physical shares before they sell them. Apart from potential take overs, the SP of an organisation has no bearing on the way it is ran. You have to remember that the tail wags the dog in short term trading, 0.5% of the allotted share capital will drive the price, sometimes even less, but if a company has a good product or service and is profitable, like Cream, it will always rise to the top. For me, 888, seems like a good punt and I can see past the noise. Covid has changed the landscape of share trading forever, due to the huge numbers of PI’s entering the market, bringing in huge amounts of cash and with it more volatility. You probably look at your positions 25 to 50 times a day, in the old days we looked in the Telegraph on a Thursday and the Times on a Sunday. The city love it, as they have developed a new revenue pipe line, it is called transferring wealth from PI’s to the City!