Weak Shorts
a.k.a. Weak hands
Traders who bet on a fall but bail out at the first sign of a bounce.
In plain English
Traders who bet on a fall but bail out at the first sign of a bounce.
Weak shorts are sellers with shaky nerves. They went short hoping for a quick drop, but they are not prepared to sit through any pain. The moment price ticks higher, they scramble to buy back.
When a market is full of them, even a modest bounce can snowball, as their hurried buying pushes price up and scares the next batch out. That is the raw material of a short squeeze.
Keep this word for good
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