Quote:
Originally Posted by Enoch Root
And what problem is that?
I am no fan of hedge funds, but they serve a purpose. They are piranhas, circling the financial waters, feasting on the weak, the stupid, and any scraps they can find.
They provide liquidity, and they challenge other positions.
Please explain how they are the problem.
(and don't say 'because they over-shorted this stock'. So what? All that has done is provide an opportunity for people like you to rally together and save the world!)
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Shorts are an important tool for managing risk but in isolation are a risk themselves. Hedge funds who are in this deep without some counter-balancing upside are just stupid and greedy and don’t deserve any sympathy. I’m always understood the right formula was a combination of options and shorts to mitigate risk in either direction while still carving out some profits, but I’ve never been a trader....