The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

GPRO is a prime example of why the shorting game is broke, at least in a multi-day basis. The company is totally overvalued, is about to raise $$, lock up expiry coming soon and insider will dump. Yet the stock keeps hanging on and squeezing shorts. over 95% borrow rate so even the 'value' shorts get hosed as their long-term holds drain up all their money

I'm focusing on daytrading now and most of the time on the short side, but the only way it works is if you take profits in the pullbacks and are disciplined when the stock is strong. Otherwise you get killed.

The only multi-day/week shorts that kinda work are small cap low priced junk stocks ($1-$15 range). Companies that are so shady its tough for even idiots to buy. I mean, they do buy it but they don't hold for the long-term, its just a momo game that turns and then you can profit on the way back to earth (DGLY, ISNS, LAKE, etc)
 
VLTC proves that trading solely on fundamentals on this market is flat out stupid. Might as well light your money on fire. You got to combine the fundamentals with price action and time the stock well. I interviewed a guy who is an expert on this (made over $3M last year), I'm sure he banked a few hundred thousand on this stock
 
MNKD but there are no borrows. you can short synthetically with options but the spreads are significant, not sure if its worth the trouble. Reg Sho stock so it can be VERY dangerous to short and ride it up. I would only day trade this for now
 
JIDG as well. $10B market cap no earnings, its a replay of CYNK. pure short squeeze. I got a borrow from IB with a long in another broker so I'm hedged but I can be bought in at any time. Not sure I will be lucky enough to still have the borrow when this peaks out
 
I shorted JIDG the last 3 overnight sessions except for today's. got unlucky, SEC halted it today. its going to open down 70% in 2 weeks.
 
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