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by tyre 78 days ago
Not necessarily. WSB users are trying to make it big, which means betting on long shots. This could be penny stocks, companies on the verge of bankruptcy, or ones with more sentimental value than fundamentals.

Betting against these companies is obvious and expected, so the cost of shorting might be high enough that even if you’re correct (stock goes down, the opposition of what WSB said), paying the cost of the short (the fee to borrow the stock from someone else) is high enough that you still lose money.

Also:

1. shorting stocks can be quite dangerous. Your downside is, well, not infinite but it can easily wipe you out.

2. You might be correct that the stock goes down, but over what time frame? Again, you have to pay money to hold a short. Or you’re using a different financial instrument that has a specific timeline. If the market does move in your direction but too late, you still lose.