Sell the stock that the investors do not own to buy them at a lower price. It caused the stock price to dip, the reason could be the company is overvalued, but sometimes the company is just doing fine.
As a value investor, we buy low to sell higher or to hold it long term but we maybe caught in between the short sellers, so if first time buy the stock better check the interest of the short too, to avoid being trapped in the downtrend or missing the rally, or short squeeze 😊
Not saying buy or don't buy it, just be awareof the risk, when short volume suddenly increase, price can suddenly drop too, but for a good company it maybe temporary, and longterm investors can be less worry.
As i picked $Tesla Motors(TSLA)$ just for example because recently the price shooting up, then when i see the short amount is alsohigh, means those who sold High will try to make the price drop to buy back lower.
Wish you have a pleasant trading day ❤️
Comments