What should investors do after a short-seller attack?

With the recent report from Hindenburg Research about $Block(SQ)$ , how should you react? In this article I will share a few points for your consideration about how to react.

What does short selling mean?

Short sellers are investors who bet against a stock by selling shares they don't actually own, hoping to buy them back at a lower price later and make a profit. When they release a report on a company, it can cause the stock price to drop quickly, leaving long-term investors wondering what to do next.

What can you do?

Check if the report is accurate. Take a good look at the information presented in the report. Some short sellers may be genuinely worried about the company's financial health and provide useful insights. Others may have ulterior motives, such as trying to manipulate the stock price for their own gain. You should look carefully before making any decisions about your shares.

Think long-term. Even if the short seller's report is accurate, it's important to remember that no company is perfect. You should weigh up the negative information presented in the report against the company's long-term prospects. Is the company still making money? Does it have a strong position in its market? Are there any new products or other things that could make the stock price go up? You should consider all these things when deciding whether to sell, hold, or buy more shares.

Keep an eye on how many shares are being traded, and the stock price. Short seller reports can cause a stock's price to drop quickly, but it's important to keep an eye on how many shares are being traded as well. If lots of people are selling their shares, it could be a sign that institutional investors are getting rid of their shares. If the trading volume stays low, it could mean that long-term investors are holding onto their shares.

Look for independent research and analysis. Short seller reports can be one-sided, so it's important to find independent research and analysis to get a more balanced perspective. You can get this from financial news outlets, analysts' reports, or industry experts. By getting different opinions, you can make a better decision about what to do with your shares.

Stick to your investment plan. Finally, it's important to stick to your long-term investment plan. If the short seller's report has caused the stock price to drop, it can be tempting to panic and sell your shares. But if you panic, you might make a bad decision. You should stay calm, stick to your investment plan, and make decisions based on careful analysis of the situation.

Good luck out there!


@TigerStars @TigerStars 

Modify on 2023-03-25 18:28

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment17

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  • BernardLL
    ·2023-03-27
    Short sellers profit by making use of fear. The current banking crisis is an example
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  • mster
    ·2023-03-25
    Attack of the clown.
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  • phongy 45
    ·2023-03-25
    headache with shorties ..
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  • Elsa Heng
    ·2023-03-26
    [What]
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  • Kok Weng
    ·2023-03-26
    [Cool]
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  • royll
    ·2023-03-25
    k
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  • AiAi
    ·2023-03-25
    Hg
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  • AndyAi
    ·2023-03-25
    Ff
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  • Hkh
    ·2023-03-25
    ok
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  • jerwy
    ·2023-03-25
    oh
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  • CookieMon12
    ·2023-03-25
    Ok
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  • Cam20
    ·2023-03-25
    [Cool]
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  • Squ00
    ·2023-03-25
    Ok
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  • DancingOwl
    ·2023-03-25
    Ok
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  • serenityj
    ·2023-03-25
    ok
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  • Nayazindagi
    ·2023-03-25
    ..
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  • AndrewL
    ·2023-03-25
    Ok
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