Peter Roscoe has been involved in the financial markets for 18 years.
Hailing from Teesside, he has had a long-term involvement in the finance market, but for the past eight years he has been running a shooting range in Bulgaria while trading has been a minor activity.
Mr Roscoe posts his stories of trading successes and failures on his YouTube channel.
Recently, he has witnessed the emergence of online trading applications, offering everyday people access to novel financial solutions such as short selling.
Rather than making the typical stock purchase, shorting is done by borrowing a stock and then immediately selling it. The investor hopes that the value of the stock will decrease in order to be able to buy it back at a lower price and thus generate a profit.
Proponents of short selling contend that it has a significant role in the financial markets, assisting in uncovering the real worth of a particular asset and in some cases, revealing fraudulent activity.
Yet trading in this way is extremely dangerous and before the growth of online trading sites, this was only something professional traders could do. Nonetheless, with the advent of web-based brokerage services, even inexperienced investors have the ability to engage in this activity quickly.
Mr Roscoe does not suggest that as an option.
I often receive requests like, "Hey, I'm thinking about getting into day trading by short-selling." People leave comments or send emails at least once a day saying this, and my response is always the same: "Are you currently employed? If so, then don't do it!"
If you aren't willing to devote four to five hours daily, Monday through Friday, to actively view the market changes over a period of six months, you will have no success at all. It is probable that even with this dedication you will not succeed.
In spite of the warnings, a number of people have still ventured into short selling.
"The increase has been remarkable," declares Dan Moczulski, the UK managing director of E-Toro, noting that there has been a significant increase in shorting on the platform over the previous three years.
He states that the Covid crisis had an integral role. "Many individuals were telecommuting, which gave them the opportunity to explore various sources of income."
He believes the pandemic has changed the attitude towards money in the UK.
It wasn't considered socially acceptable to discuss finances - perhaps the only money-related topic that would surface at the dinner table was house prices. Nowadays, individuals seem to be more open to revealing their investment portfolios, happily discussing whether their stocks are doing well or not, a concept that was unheard of a mere five years ago.
Numerous short sellers and amateur traders with public profiles on social media are vocalizing their belief that particular stocks will decline.
A type of trader has recently become more notable. This is the activist short seller. Such a trader not only anticipates a company's stock to decrease but also makes this view known through distributing meticulous research with eye-catching titles.
Carson Block of Muddy Waters is one of the most distinguished. He and other similar companies often level accusations of blatant dishonesty against businesses, and then bet that their stock will plummet following the release of these worries.
Mr Block claims that the benefit that their business offers is a transparency which has been lacking in the market: "We are saying, hey, this management has been fooling you investors or misleading you. We provide clarity on the situation and why we are taking a short stance."
The business world is increasingly relying on technology to stay competitive. Technology has become an integral part of business operations, allowing companies to improve efficiency, cut costs, and increase their reach. With the increasing availability of high-speed internet, cloud computing, and mobile devices, businesses can access a wider range of data, resources, and services than ever before. By capitalizing on these new technologies, businesses can improve their competitive edge and establish their presence in the market.
Activist short sellers have a polarizing effect. Their negative commentary about certain companies has led some to accuse them of interfering with the market.
Mr Block states that there is little celebratory feeling when something goes well on the day of publication. Instead, there is more of an apprehension that someone will come after him since the reception of what he published was so good. He goes on to say, "No. The more something drops on day one, the more I think 'ok - they're going to come after me, I haven't heard the last of this'."
Activist investors, even with more backing than the average trader, experience a great deal of stress when attempting to earn money.
Mr Block states that the profession he is in is one that usually causes practitioners to become exhausted within a few years, and he has been performing this profession for 13 years, noting that it has put a lot of stress on him. He says, "It's essential that we all work together to solve the issue."
Peter Roscoe concurs, emphasizing the importance of the collective effort to tackle the problem.
If I look back at my first 100 attempts, I'd estimate that I was successful in around 30%, while the majority (70%) were unsuccessful. It is to be expected that you will make mistakes on many occasions.
Dan Moczulski of E-Toro has stated that while his company offers safeguards for rookies taking part in short selling, this type of trading is inherently risky.
On E-Toro, shorting takes place via a contract for difference, also known as a CFD. In addition, individuals must satisfy a suitability assessment before being allowed to do this.
If losses amount to more than half the capital on an E-Toro account, the company will begin to close the respective position. Moreover, when trading CFDs, a customer is always guaranteed to never owe more money to the broker than they initially deposited to their account.
Mr. Moczulski states that there is a distinction between retail and institutional shorting, the latter of which he says possesses "unlimited risk".
Those who invest with their own funds, without having prior experience working for banks or other investment firms, are referred to as retail investors, and are sometimes derisively labelled as "Dumb Money".
A movie, which has adopted the same name, has been produced to document the GameStop shorting story and how various amateur online investors were involved in trading its stock, with several of them ending up losing funds.
Although Mr Roscoe boasts a wealth of experience as a trader, no more than 5% of his total activity involves short selling. Still, whenever he's successful, he makes sure to revel in the victory.
He states that if he earns $1,000 from a single short trade, they have to go out for a steak dinner with the family the following day. And if he makes five times that amount, he will invest in a $1,000 bottle of whiskey.
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