The Risk of Shorting a “Low Float” Stock– $DGLY

Sep 2nd, 2014 | By | Category: SMB Video Blogs, Steven Spencer (Steve's) Blogs
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While I was in Nantucket on vacation DGLY popped from $4 to $8. I began to talk to our traders about further upside and the inherent risks associated with shorting a “low float” stock. This video expands a bit on my thought process. Enjoy!

Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, options, forex and futures. He has traded professionally for 18 years. His email address is:

Steven Spencer is currently long CSCO, DDD, FB, FEYE, LULU, SEAS, VZ and short GLD

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  • Hoa Nguyen

    Thanks for doing another video on DGLY. Your trading style makes a lot of sense to me. I’m glad for some reason i started following you on the twitter again.

    In previous days i was watching DGLY before but i took it off my main screen(don’t like it when i can only go long a stock). I actually did want to short it at one point but as you know interactive brokers had no shares.

    I follow someone on twitter that has used those exact same reasons to short a stock. From watching his tweets he does pretty well most times.

  • Guest

    I see my comment was deleted. My bad, I thought this blog promoted thoughtful discussion.

  • steven spencer

    we welcome thoughtful discussion. anonymous posts with obnoxious comments are removed by the moderator as they do not foster the type of community we are trying to build. the following video was posted on august 25th when DGLY was still $10 before it ran up to $33. our job as mentors is to look out for the vast majority of people who would get run over when shorting stocks like this.

  • Juan Carlos

    Thank you Steve for sharing. A nice view!

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