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You must have a stop cover on every short. Usually 10% higher. The industry see's your short and cover price. When volume is light they can will 100% of the time. All in a flash, they bump the price up 10% take you out then drop the stock back down.
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If a retail trader does get shares to short of a small stock. Unless it's Hot. Liquidity and volume is so low these days. So if you short a $2.00 stock and put a 10% stop cover at $2.20. It's almost certain that the industry will bump the stock to $2.20 and take out your short. twitter.com/MasterBJones/s…
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Ahhh! Volume is what helps protect the SL. I always wondered why my SL always get hit then I stop using it and I loose more. Lesson learned and new knowledge gained. Thank you professor. We appreciate you