This is how dumb average retail investors are: TWTRQ up 1300% and counting

[ellorienne]

@clairjen56 I see, thanks.

 

[trustingin]

@bluemoose And for anyone considering doing this in real life, just remember it can still move up, trigger a margin call, and wipe you out.

 

[resjudicata]

@trustingin Find anywhere that will even allow you to short this. My broker doesn't allow anything below 2

 

[lostinthepast]

@resjudicata It's also an OTC stock; none of the major brokers will allow shorting on them, even if they're over $1 too(tried it with FNMA).

 

[resjudicata]

@lostinthepast Shorting OTC's would be too easy to make money on

 

[jenny54]

@bluemoose What happens when you're short on a stock and it gets delisted due to bankruptcy?

 

[novawin87]

@jenny54 http://www.davemanuel.com/2007/08/19/what-happens-if-a-stock-that-i-am-short-goes-bankrupt/

 

[happytales]

@novawin87 And you said crossing the streams was bad...

 

[victorgrant]

@jenny54 You win the game!

 

[dbonatucci]

@bluemoose I was in one of those games years ago. My teacher didn't understand that you should measure the percent of change rather than the nominal change per share. Thus, the kid who picked the equivalent of BRK easily won even though the stock only went up a small percent.

This is all that I remember from that class. If the teacher couldn't get something this basic right though I can only imagine how bad the class content was.

 

[resjudicata]

@dbonatucci Wouldn't you all have started with the same amount though?

 

[dbonatucci]

@resjudicata We each got one share regardless of price.

 

[kdham000]

@bluemoose im relatively new to this and just started learning about shorting and what not, but my professor didnt exactly teach how to short on our online program just yet. Im using StockTrack, i see that there is an option to 'Short" this stock at the current bid and ask price is $0.04. what should my trailing/stop $/% be? and my order term? And I have around $400k, how much would you put in?

 

[bluemoose]

@kdham000 Throw 50% to 75% of your money in it, don't set a trailing stop, and wait till it drops below $0.02 before covering, because it WILL get there at some point, even if it's not today. Yeah it could temporarily go against you, but this is fake money and you are going against a whole class so you need to take big risks in order to have a shot at winning. It was a much better short a couple hours ago but you can still make a nice profit if you are allowed to trade it for your game.

 

[kdham000]

@bluemoose damn, i just tried and it needs to be at least $3.00

 

[sam100]

@kdham000 "what should my trailing/stop $/% be?" - depends on how much $ you wish to risk on the trade. bet sizing and stop levels are among the most important things to learn if trading. figure out how much money you want to risk, what your risk to reward ratio is, and where the best levels are for stops and take-profits.

 

[genises]

@bluemoose Is there any validity to this strategy in real life? What are the risks?

 

[resjudicata]

@genises

And for anyone considering doing this in real life, just remember it can still move up, trigger a margin call, and wipe you out. *

or

The market can stay irrational longer than you can remain solvent. *

 

[resjudicata]

@bluemoose Irl you can't short that. My Prof wouldn't key us do anything unrealistic, which this would fall under.

 

[resjudicata]

@bluemoose Would shorting this with real money for two days or so be an awful idea