Just saw the plain bagel reporting on a consistent scam involving finfluencers promoting stocks of ‘shady’ companies on youtube, apparently being pump & dump schemes.
sounds good?
he points out how those stocks consistently produce -50% performances and worse.
Now, could a savy investor not abuse this by shorting such stocks? ^^
(I never touched options & shorts etc, and do not plan to)
The stocks will probably not be available to borrow or the borrowing cost will be prohibitively high.
Options likely dont exist on them or the cost is insane.
Losses are potentially unlimited with shorting stocks, while gains are capped at 100%- fees.
Also consider there were multi billion dollar hedge funds which got bankrupt by shorting gamestop… so the market can sometimes be irrational longer than you are solvent and that is true even for professionals.
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