posted on Sep, 16 2008 @ 12:36 PM
The only thing with short traders is that you can manipulate VERY easily to make money by trading short.
Imagine the hypothetical situation of how you are going to short-trade some airline stocks. Why, just have them crash a couple of airplanes into some
buildings, and all of the sudden, you have millions in profit just waiting to be reaped.
Of course, you may have to let it go, and never collect the profits, once people realize you short traded those stocks. So, your plan may have to be
more subtle than that. Oh, if only I had an example from recent history to show you how this would work!
While there are short traders who actually do their homework, etc., to make their money, it is MUCH, MUCH easier to manipulate the market to make
money if you are so inclined.
After all, notice how hard it is to get people to believe a stock is undervalued?
[edit on 16-9-2008 by sir_chancealot]