6 Things To Stop "Short Trolls"
So, you've heard of 'Pump & Dump,' but have you heard of 'Short & Distort?' Both are equally-- criminal.
Traders can make money by selling short a stock, which is different than going buying long a stock. Those who short sometimes go rogue and publically trash a stock in hopes for it to drop. These people are (now) known as "Short Trolls." A 'Short Troll' is identified as an ugly public nuisance who rapid-fires posts of criticisms about a stock in various investment forums or trading chat rooms. You know them well. They are loud and obnoxious and post often--too often. Every post is negative and they only criticise and do so unmercifully.
Traders/investors who analyze both fundamental and technical analysis to base their decisions to go long or short a stock is considered to be savvy. On the other hand, 'Short Trolls' are mental midgets who choose to go the path of least resistance and smear others. Perhaps they should wear brighter colors.
The daily deluge of never ending assaults can be nauseating. It's especially grand when 'short trolls' team up together and wage a collective assault. These trolls are like the boisterous town drunks who group up and stumble over to your party.
WHY Do Short Trolls Do This? Money-money-money! 'Short trolls' are short the stock and the only way they make money is if the stock decreases in value. For this reason 'short trolls' veer off into criminal territory and say and publish inaccurate information and even defames to adversely manipulate the stock price.
WHAT CAN I DO ABOUT SHORT TROLLS?
For more information read this and consider going on the offensive.
AUTHOR: d-seven owner of Grok Trade (@GrokTrade)
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WARNING! 'Short and Distort' Crime
The "short and distort" is a known scam that is being actively prosecuted. A "short and distort" scammer first short-sells the stock, and then fraudulently attempts to lower the stock's price via posting criticisms or negative predictions about the stock's business, products, management, alliances, etc. The scammer then covers their short position buying back the stock at a lower price to gain a profit. The crime is when the investor benefits financially by posting negative posts with the intention to harm the credibility and trust of a publically traded company, its stock, its products, and/or its management. Litigation can be brought against anyone suspected of such fraudulent activities.
REGULATION: Short and Distort manipulators are being targeted--especially in the the category of stocks most often associated with this scheme---pink sheet and OTC stocks. In general, penny stocks have been the target of heightened enforcement efforts.
Des Woodruff (aka d-seven)