Thread by @team3dstocks

Imagine u're short 100K shares on a lowfloat stock that can rip a few cents on just 10K share orders.

Ur avg is $3.00 and the stock rips to $4.00.

There's no way in hell u're covering that high (the slippage will be massive, not to mention u're scared to cover at the top).

https://twitter.com/__shaka_zulu__/status/1368767874706333702

so what do u do?

u think to yourself "ok as soon as this stock pulls back im downsizing or bailing".

So u place cover orders at let's say $3.50, hoping they get filled as the stock pulls.

Remember, u're trading size, so u cant just market cover. u have to wait on the bid.

well guess what:

u're not the only shortseller trapped.

at least 20 other guys are also stuck with monster size & have the same exit plan as u (u'll be surprised at how many guys who trade ridiculous size on these LFs are not even on twitter).

So they all place their bids.

the manipulators KNOW this.

they know who is trapped, what their avg price is, and at what price they'll start getting margin called etc.

it's not hard to get that info (unethically of course) if u know the right ppl.

yes, wall st is dirty like that.

So guess what they do

those buy orders u & the other bent shorts have spread out and sitting around $3.50, $3.30, $3.10 etc to plan ur exits, the manipulators are thinking "oh that's cute". so they put HUGE bids at $3.50 to make sure u & the other bent shorts never get filled on the pullback from $4.

So the stock pullsback & just stalls around $3.50 . This forms a flag pattern, attracting more FOMO bulls.

Game over.

Now the shorts are bent. They cant get out. That's how squeezes begin. That's how winter comes for shortsellers.

Learn how the game works.

#BearTipOfTheDay