@jay_21_ (1) Shorts must always be very small. Max 1.5-2.0% for large cap structural decliners. 20-40bps for frauds and promotes.
@jay_21_ (2) No hero shorts.
@jay_21_ (3) Wait for things to crack before putting a position on in any type of size (which for a short, is still very small). $700 to $0 and $200 to $0 are both 100% returns.
@jay_21_ (4) Must be willing to cover aggressively if going against you. After cracking, need to be willing to add on the way down (particularly for promotes or frauds).
@jay_21_ (5) Don’t short great companies and don’t short hyper growth companies. Maybe there can be some exceptions if your long book is heavily exposed to these factors (quality / growth).
@jay_21_ (6) Having to keep a fixed % of the portfolio short (potentially in order to justify fees in L/S fund) is dangerous. Leads to getting into crowded shorts or having to short indexes. Shorting seems to be best when done opportunistically.
@jay_21_ (7) Avoid high short interest names / keep them very very small / buy way OTM calls as a hedge.
@jay_21_ (8) Be very careful with equity stubs. Treat them as you would high short interest / hyper growth companies.
@jay_21_ (9) If you find yourself thinking about a short first thing in the morning / watching the ticks during the day - you are likely too big.
@jay_21_ (10) MOST IMPORTANT. At the end of the day, the only point of selling short is to enable you to safely get a little more long. Key word is safely. Short book is float. You should think of it as insurance underwriting. Portfolio management and avoiding large losses is priority #1.

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@snip96581187 @Daoyu15 @lab_leak @walkaboutrick @ydeigin @Ayjchan @franciscodeasis @TheSeeker268 @angie_rasmussen Clearly, because as I have been saying for 8 months now, DTRA and DARPA have been using Ecohealth and UC Davis to collect novel pathogens for gain of function work back in the USA. I have documented this in many threads which I will post here just to annoy everyone.

@Daoyu15 @lab_leak @walkaboutrick @ydeigin @Ayjchan @franciscodeasis @TheSeeker268 @angie_rasmussen


@Daoyu15 @lab_leak @walkaboutrick @ydeigin @Ayjchan @franciscodeasis @TheSeeker268 @angie_rasmussen


@Daoyu15 @lab_leak @walkaboutrick @ydeigin @Ayjchan @franciscodeasis @TheSeeker268 @angie_rasmussen


@Daoyu15 @lab_leak @walkaboutrick @ydeigin @Ayjchan @franciscodeasis @TheSeeker268 @angie_rasmussen
the whole point of Dunks was you could go cop them at VIM whenever you wanted for $65. this shit is like having to enter a raffle to buy milk.


like seriously why not make a ton more of them if they're gonna be so sought-after? they land at outlets? so? nike still makes money off that.

the only reason to keep making them so limited is that they KNOW all that matters is the profit on the flip and if they were readily available FEWER people would want them, not more

the whole system is super broken, but it's just gonna go the way it goes, because at this point it all caters to the secondary market. the only reason Nike can sell Jordan 1s for $200 is because the people buying them can flip them for $500

adjusted for inflation, a $65 AJ1 in 1985 is like $160—and modern-day AJ1s are made from cheaper materials in factories staffed by cheaper workers. they don't HAVE to be $200 retail. but the secondary market nuked the whole concept of what sneakers are "worth"

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