PSA: Guidelines for Trading Low Float Stocks
Since we're in this enviornment, and today it's VLCN, there's a few very simple rules to understand. Most of them, now ingrained in my brain not from someone telling me or warning me, but by stepping in front of absolute freight trains and blowing up in the past. This applies to long side or short side, whichever you prefer, but especially the short side. These are NOTHING to fight with. Ever. Most will die, but you're gonna run into one eventually that doesn't stop in the 20s or 30s, it's gonna go to 50. Or 80. Or worse. It will happen. So when you're here, the only word you need to remember and focus on...is papercut . It's your best friend. It's the only way to be safe. You've gotta be okay with being wrong, likely multiple times when you get the real crazy one, before you're right. The downside of the real crazy ones? More papercuts. The upside of the real crazy ones? The "really right" last time, is really, really fucking ri...