Why would you short SLW?
The following will be a tale from real life investing.
In the post -
Day Trading, is it really worth it.
I introduced you to my sister-in-law Tipper.
Whelp, I talked with tipper again today. Told her about my latest investments junior silver mines, and silver in general.
(keep in mind I placed my bets months earlier).
She said that shes caught in a short squeeze on SLW,started at $23.
I did'nt understand this, but said, yeah silver has been having a nice run-up and would'nt be suprised if we saw a pullback. (I don't know,was trying to be polite)
Now heres the part that blows my mind-
Me- You know theres a lot of traders jumping on the silver bandwagon.
Tipper- No S#!+
Me- Also talk about a potential dividend has investors running to this stock.
Tipper- there might be a dividend?
So this tells me that she had complete faith in the charts, without reading any news or the fundementals of the company.
After that she showed me some neat chart tricks, which I will probably use to determine my limit prices, but I remain steadfast on buying on Fundementals.