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View Full Version : DO you guys short stocks?



pahagwl
03-01-2014, 12:52 PM
Shorting is when you sell stocks which you do not own. You do this in order to earn profit by buying them again at a lower price. Basically, the trader the pockets the difference between the sell price and buy price. So, I wanted to know if you guys do this and have had success employing this strategy in the stock market.

dolly fsession
03-05-2014, 06:59 AM
I am new to this forum.and I have gained many wonder full information from this forum.

crimsonghost747
03-05-2014, 11:36 AM
I have thought about it, but haven't done it at the moment.
There are couple of things to consider, firstly the average stock will yield a profit in the long term, so it will be harder to find a stock to short than a stock to buy.
Not only will you have to pay commission and taxes, you will also have to pay a small percentage (specific to each stock) for the one who loaned you the stocks that you sold. The interest for this loan is usually quite small and is calculated on a daily basis.

Also keep in mind that whereas with normal investing you can only lose the amount that you invested in... and even that is the absolute worst case scenario, when selling short there is no upper limit to your losses.

tracyjones
03-05-2014, 01:29 PM
Yes I have been shorting the right stocks for years. The key is to be very careful and only short with certain stocks that are showing a very good setup. I learned my short trading techniques online. I searched for learn to day trade forex (http://fxlivedaytrading.com) and noticed many services. After 8 months of losing I finally found a good service. If you would like the service is http://fxlivedaytrading.com . He will sometimes discuss stocks and discuss good setups.

I got out of my Tesla longs yesterday for a nice 2% day trade I was wondering if anyone has any good setups?

Tracy

Lostvalleyguy
03-05-2014, 01:32 PM
crimsonghose747 has it right. Really you invest normally expecting a stock to go up. Selling short you expect it to go down. This is sort of a pay now or pay later idea. The difference is that a $1000 risk could turn into a $1000 loss at max if you invest normally. There really is no limit to the potential loss from selling short which means that you need to be prepared to lose and lose a set amount with a sell (for a loss) at that set amount.

Selling short is not a bad thing, but it takes a more disciplined approach and a more stalwart investor.

DomDom
03-05-2014, 02:17 PM
If you are investing then there is really no reason to short, if you are going to trade then shorting stocks is a must!

soopersonic
03-06-2014, 03:16 AM
Short selling sounds like a good idea in theory, but you would need to evaluate and manage the risks more vigilantly that with a buy and hold plan I think. I agree crimsonghost's reply above, perhaps the first step here is to identify your primary goal with trading, a "mission statement" of sorts. If that fits into your long term investment and life goals, then proceed to due diligence part 2.

fredkawig
03-06-2014, 09:58 AM
I don't know this technique. It is a good advice. Although I haven't really tried trading myself, only virtually and it is kind of fun. A lot of people gain a lot of money from trading stocks specially when they have a huge amount of money to play with.

owesem75
03-06-2014, 10:23 AM
Unless you have plenty of cash to spare for Short trading, this strategy is expensive. I am investing hoping to earn some passive income through dividends and own shares of good company.. and not necessarily make my broker get commission from me through this risky strategy.

crimsonghost747
03-06-2014, 01:29 PM
Unless you have plenty of cash to spare for Short trading, this strategy is expensive. I am investing hoping to earn some passive income through dividends and own shares of good company.. and not necessarily make my broker get commission from me through this risky strategy.

Same amount of cash required as for regular trading. And you can always use products which are more leveraged if the commissions are too high, though this of course increases the risk, and a stop loss should be used especially when shorting.

I too prefer investing in the long term, it's all about the risk. While trading can yield great profits in short time, you need both skills and luck if you want to make a profit in the long term.

DomDom
03-06-2014, 03:54 PM
Same amount of cash required as for regular trading. And you can always use products which are more leveraged if the commissions are too high, though this of course increases the risk, and a stop loss should be used especially when shorting.

I too prefer investing in the long term, it's all about the risk. While trading can yield great profits in short time, you need both skills and luck if you want to make a profit in the long term.

Shorting has its place and can bring you alot of profit. I think its only for the very experienced though!

delusional
03-09-2014, 02:15 PM
Shorting stock is considered illegal in a lot of institutions. I don't do it. I also don't even know how I would pull it off. I know what it is and how it works but doing it is something else.

DomDom
03-09-2014, 03:40 PM
I didnt know shorting is illegal in some institutions. Which institutions are those ?

crimsonghost747
03-09-2014, 04:59 PM
I've also heard of it being illegal in some places, simply because by shorting the stock you will pull down the price and thus, when in large enough quantities, you can cause some sort of a panic. You know the drill, you sell enough to make the stock go -2% and some people will have their stop loss activated, others will sell because they think it's going to go lower etc.

Then again, the same exact thing happens if you buy with a lot of money.. so I don't really see what the problem is.

novasparker
03-09-2014, 07:05 PM
I've always been interested in day trading, but have not yet gotten up the guts to do it. This sounds a bit complicated for a newbie like me. My initial strategy was to simply learn how to read stock trends in order to learn how to pick a stock that looks like it's on the rise. Buy some shares there and sell as they hit their peak. Of course this is all about timing and you have to make sure that you cover your initial investment plus your trade commission you have to pay, but I think that this might be the safest bet. Shorting stocks sounds a bit more aggressive than I am ready for just yet, but it does sound interesting.

crimsonghost747
03-10-2014, 07:23 AM
I've always been interested in day trading, but have not yet gotten up the guts to do it. This sounds a bit complicated for a newbie like me. My initial strategy was to simply learn how to read stock trends in order to learn how to pick a stock that looks like it's on the rise. Buy some shares there and sell as they hit their peak. Of course this is all about timing and you have to make sure that you cover your initial investment plus your trade commission you have to pay, but I think that this might be the safest bet. Shorting stocks sounds a bit more aggressive than I am ready for just yet, but it does sound interesting.

Well, it's not really any more aggressive than regular trading. You're doing the same thing with the same stakes, just looking for the stock to go in a different direction.

ozelegend
06-24-2014, 04:34 AM
It's an expensive habit to bet against the end of the world...

Max-Profits
07-01-2014, 10:46 AM
Personally I do not have a ton of experience trading but do have some. Issue with shorting stocks is that you have the potential to lose a lot more than you do when buying. Because when buying it can't go below zero, but when shorting the company can grow to more than double than the original, so you can lose more than your original investment. Personally I'd prefer a put (option of a short) over actually shorting, and do it for the short term, about some bad press release or something. That was the only time I experienced benefit from rooting against them. But like I said some people on here have much more experience at it than I.

redalert
07-21-2014, 04:00 AM
indeed its a resource for marketing and improving our skills
dolly fsession

KennethPaxton
09-09-2014, 12:38 AM
I never sell any stocks but my father always do like this, he always short stocks and he also get profit by selling the stocks. But I know very little concept of borrowing the concept like to sell it and buy it back and give it back the broker easily understand this concept. So when you buy and sell when the dividend is paid an individual have sold the stocks and the company pays to the purchaser of the stock.

HassleFreeAdvances.com
03-10-2016, 04:21 PM
Shorting stocks, as an investment strategy, is poor. As statistics show, stocks grow over time. They are also perfectly priced. So the odds you'll get lucky are less than 50%

Now there is one GOOD reason to short a stock. And that is if it is part of your hedging strategy. In other words, if you are heavily invested in an industry, and want to minimize risk of the industry dropping, then you may short some stocks (with options, not full shorts) in order to make money on the other side of the equation... that is, on the short if the industry crashes.

Some companies short stocks of other companies to the extent that they have payment risk if the business declines.

Shannon Weiss
11-18-2018, 11:30 PM
me too Dolly

Shannon Weiss
11-18-2018, 11:30 PM
Shorting stocks, as an investment strategy, is poor. As statistics show, stocks grow over time. They are also perfectly priced. So the odds you'll get lucky are less than 50%

Now there is one GOOD reason to short a stock. And that is if it is part of your hedging strategy. In other words, if you are heavily invested in an industry, and want to minimize risk of the industry dropping, then you may short some stocks (with options, not full shorts) in order to make money on the other side of the equation... that is, on the short if the industry crashes.

Some companies short stocks of other companies to the extent that they have payment risk if the business declines.

That was a new info for me. Thanks for sharing !

gilsulate
03-22-2019, 07:48 AM
There are couple of things to consider, firstly the average stock will yield a profit in the long term, so it will be harder to find a stock to short than a stock to buy.

mayoskinclinic
04-02-2019, 12:27 PM
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BrianEtemad
04-03-2019, 01:29 AM
Nice information you provide about sell stocks on profits.

alice737
04-04-2019, 04:55 AM
Shorting, or short-selling, is the point at which a financial specialist gets shares and quickly offers them, trusting the person can scoop them up later at a lower value, return them to the moneylender and pocket the distinction. ... Be that as it may, in the event that you have a short position, there's no restriction to how a lot of cash you can lose if the offers rise.

panditdesraj
05-07-2019, 02:26 PM
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mayoskinclinic
05-08-2019, 10:08 AM
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TimPaige
07-06-2020, 11:27 AM
I don't need to do shorting. I'm a trader with experience and have long realized that I like to work with people, not with robots. I also recently started learning scalping trading to start earning more. I've been trading for 8 years and I can say with confidence that scalping trading (https://fondex.com/en/for-traders/educational-news/four-popular-scalping-strategies) is the best way to earn money and the easiest. Many of my friends still do shorting and don't earn practically, but I've already bought a new car and made repairs at home. Choose the best way to earn money and develop it then you'll have a big profit.

Lilykevin86
07-24-2020, 11:27 PM
In the event that you purchase low and sell high, odds are you'll be more extravagant and everyone advertise were depicted as the heroes in the film "The Big Short.

Brownii
08-05-2020, 05:09 AM
I don't because I've never tried investing in a stock market. It seems to be really complicated to me. But I understand that if I want to be wealthy, I need to figure things out. So I decided to start from a simpler thing, a foreign exchange market so I am browsing through https://forex-up.com/broker-reviews/tickmill-review/ in search of the best broker. Maybe you guys can help me with this choice?

raviseo121
08-06-2020, 02:47 AM
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millionaire4646
08-06-2020, 09:06 AM
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raviseo121
08-09-2020, 11:06 AM
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ludacriss
12-03-2020, 11:50 PM
I've been trading for the past two years, using different models for those trading operations, and what I can say for sure - you have always use those technologies and applications that already have been recommended by other users and financial experts. You can always find and read useful articles on Trading Skeptic (https://tradingskeptic.com/), which are related to financial sphere of business. It can really help in understanding the basic flows of financial markets.

raviseo121
12-04-2020, 09:56 AM
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Gemini45
12-04-2020, 10:44 AM
I`m currently engaged in the sale and purchase of shares and believe that this is quite a profitable business. You just need to constantly follow the news in the world and be able to analyze the situation.

raviseo120
12-04-2020, 11:46 AM
thanks for sharing with us

RaniaRanii3
12-05-2020, 12:14 AM
Otherwise called shorting a stock, short selling is intended to give you an all things considered, there's not a furthest cutoff to how high a stock's cost can climb.

raviseo121
12-05-2020, 12:48 AM
thanks for sharing with us

alishbasaki
01-21-2021, 11:28 PM
Short selling is less secure than going long on a stock on the grounds that, hypothetically, there is no restriction to the sum you could lose. ... Short selling, when it is effective, can net the financial specialist a pleasant benefit in the present moment as stocks will in general lose esteem quicker than they appreciate.

raviseo121
01-23-2021, 10:17 AM
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slovak
02-16-2021, 05:46 AM
I believe that buying stocks today is really not a bad idea at all. And in general, this can be said about the investment sector, because the prospects here are very great. Since I'm a fan of cryptocurrencies, I advise you not to forget about this option as well. Choose an exchange for yourself, read about (https://techbullion.com/custodial-vs-decentralized-exchanges-whats-the-difference/) the different options and how they differ. This information can help you.

GC BUYING
02-17-2021, 11:14 PM
Hi thanks for sharing this great topic it will be great help for all of us looking forward to see your more latest topics thanks

raviseo120
03-03-2021, 10:56 PM
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CrySmile
03-04-2021, 02:57 PM
Yes, I have an interesting short experience) In November I decided to play short and started shorting Stellar. I decided that since Stellar is essentially a fork of Ripple, and Ripple shorted very well at one time, then Stellar will also go short. I was shocked when the coin grew 5 times in three months. It’s good that I managed to sell and didn’t lose much. Friends gave me an old article to read - https://stellar-wallet.org/arts/stellar-xlm-why-you-should-invest-coin-september-2020.html. Only this probably saved me

raviseo121
03-04-2021, 10:55 PM
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