Is shorting cheap stocks that have had massive breakouts a wise strategy?
In a way yes if you're looking at, for example, penny stocks that are common for pump and dumps then yes shorting is a good idea if you short a great deal of stock because penny stocks are classed as anything <$5. You can expect to make some money shorting as those prices aren't really going to go up again.
>>1941810
People trade penny stocks for high volatility. Good swings can get over 100% gains. If you are shorting, you are capping the amount you can make (to 100%).
So, no, shorting isn't a good option. In my opinion anyway.
>>1941869
How do people identify when a 'good swing' is impound? ive been looking at penny charts a long time and the ones that are extremely volatile are VERY illiquid and not tradeable.
>>1941898
https://www.youtube.com/watch?v=oBOuUs7aKXU
http://www.dummies.com/personal-finance/investing/penny-stocks/9-signs-that-penny-stock-is-about-to-rise/
http://www.timothysykes.com/blog/my-secret-formula-for-finding-penny-stocks-pre-spike/
http://finance.zacks.com/penny-stocks-ready-soar-11708.html
>>1941898
I don't know what you don't just trade crypto. They have the qualities you are looking for in penny stocks, but the fees are lower and there are no account minimums.
>>1941810
Sure if you're not getting cucked by crazy spreads
>>1941869
>If you are shorting, you are capping the amount you can make (to 100%).
And the potential loss becomes infinite
Surely a good way to "invest" your savings