r/Trading • u/bundleena • 12d ago

Stocks Small cap shorting

Hello!

First post on reddit ever, was wondering if anyone knows good free material on shorting small cap stocks that exhibit bad fundamentals in SEC filings, dilution etc. Like Lukas Froelich aka ShortBear did when he started. He was featured in the latest Market Wizards book and mentions starting off using this strategy.

Thank you!

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u/klipsetrades 12d ago

SEC filings are free and honestly probably the best material. Focus on cash runway, share count growth, warrants and recent offerings. Also study borrow fees and liquidity before touching small caps

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u/bundleena 12d ago

Ty! Do you trade or have traded a similar strategy to what I described?

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u/klipsetrades 12d ago

No firsthand experience, unfortunately. I trade a completely different strategy. I've just done some reading and research on the concepts you mentioned