How do you make money on falling stocks?
jim
week following an upcoming announcement... How do you profit from that
knowledge?
Charlie Perrin
You short the stock.
ynotssor
jim <j...@home.net> wrote:
"suspect" != "knowledge"
FrediFizzx
news:e93Fi.15299$Y7....@bignews3.bellsouth.net...
> Let's say that you strongly suspect that a stock will drop 10 points
> the week following an upcoming announcement... How do you profit from
> that knowledge?
If you have to ask, you had better stay out of it. ;-) Shorting stocks
is usually not for beginners.
Fred
704set
> week following an upcoming announcement... How do you profit from that
> knowledge?
>
Sell short the stock
Go long the puts
Go short the calls.
704set
carolyn
steve
1) Speculation = zip.
2) Profit taking by shorting stocks is slightly easier than going
long. At least I've made more money shorting stocks.
GL Steve
jim
"steve" <effa...@hotmail.com> wrote in message
news:1189582978.9...@y42g2000hsy.googlegroups.com...
It does seem like an easier call to make (and a shorter term) than the usual
route of investing.
Of course, I could be wrong.
jim
704set
Try being on the wrong side of a short position. It's like having your
finger nails pulled out.
704set
jim
"704set" <704set@no_email.com> wrote in message
news:BNCdnQUWo4FLL3Tb...@comcast.com...
Maybe I'm looking at this all wrong, but it seems to me that investing in
shorts is as simple as watching for bad news about a stock in WSJ or USA
Today.
When the simple minded investors run because of bad news stories (instead of
sticking with a financially sound stock as advocated by Buffett) the price
suffers and the stock becomes a bargain. If you see the bad news stories,
buy the stock (with a stop loss to sell if it reaches a certain higher
point, should it turn up), sell it off as low as possible and use your
profit to purchase the stock before it begins its next climb up from the
pounding of the bad news, you should profit on the way down and the slower
climb back up.
Just as with any stock purchase, the key would be to settle for a realistic,
reproducable gain (like compounding interest) on your stock picks and resist
the temptation to go for the astronomical gains (and inevitable losses that
accompany such chases) that happen once in a blue moon.
Could you look for good news about a stock and do the same thing? Sure.
But, people respond more quickly and more violently to bad news than to good
news. It is a fact of psychology that people will take action to protect
wht they have before they will take action to gain what they do not. So,
shorting seems to be a simpler mode of investing from a purely psychological
point of view.
jim
Blash
> If you see the bad news stories,
> buy the stock (with a stop loss to sell if it reaches a certain higher
> point, should it turn up), sell it off as low as possible and use your
> profit to purchase the stock before it begins its next climb up from the
> pounding of the bad news, you should profit on the way down and the slower
> climb back up.
WHAT ARE YOU DRINKING???
jim
"Blash" <bla...@comcast.net> wrote in message
news:C30F3996.7D1E0%bla...@comcast.net...
Water. Want some?
jim
Actually, " sell it off as low as possible and use your profit to purchase
the stock" should have read something like "buy back the stocks as low as
possible to pay back your short and use the profit to purchase shares of the
undervalued stock for yourself". When I said "sell it off" earlier I meant
to basically say "take your profits".
Sorry if I wasn't clear before.
jim
Blash
wrote on 9/13/07 7:29 PM:
.......and when you said "If you see the bad news stories, buy the stock
(with a stop loss to sell if it reaches a certain higher point, should it
turn up)" what were you trying to say???
I'd STRONGLY suggest you stay out of the market until you learn to THINK
FIRST!!!
jim
If you are talking about shorting a stock (which this thread is) I was
simply saying to invest in shorting the "bad news" stock. From what I have
read about shorting, you should also place a "stop loss" on your shorting by
selling it at a pre-determined price to limit your losses should it rise
instead of fall.
I don't think I can be much clearer than that for you.
> I'd STRONGLY suggest you stay out of the market until you learn to
> THINK
> FIRST!!!
lol......that's cute.....
jim
Blash
wrote on 9/13/07 8:04 PM:
That's what I'm talking about......When you write the following, you are
showing that you have NO IDEA which end is up......
jim
Teach me, oh great and wealthy one. What exactly do you mean?
Or, are you simply a troll with less understanding of shorting than I?
It's easy to say someone is wrong. It's quite another to prove it.
So....prove it.
jim
Dr Tormento
news:N2nGi.61131$U24....@bignews5.bellsouth.net:
>>> From
>>> what I have
>>> read about shorting, you should also place a "stop loss" on your
>>> shorting by
>>> selling it at a pre-determined price to limit your losses should it
>>> rise instead of fall.
What they're trying to tell you, and the reason nearly everyone else is
laughing, is that you still haven't noticed that to close a short position
you have to ***BUY*** the stock.
jim
"Dr Tormento" <re...@togroup.com> wrote in message
news:Xns99AB6F7D3F8...@69.28.173.184...
I believe that I corrected my wording about 3 pots ago with....
"Actually, " sell it off as low as possible and use your profit to purchase
the stock" should have read something like "buy back the stocks as low as
possible to pay back your short and use the profit to purchase shares of the
undervalued stock for yourself". When I said "sell it off" earlier I meant
to basically say "take your profits".
Sorry if I wasn't clear before."
If there are any real objections to my posts, I am all ears.
jim
704set
No. You corrected yourself with this statement.
"If you are talking about shorting a stock (which this thread is) I was
simply saying to invest in shorting the "bad news" stock. From what I have
read about shorting, you should also place a "stop loss" on your shorting by
selling it at a pre-determined price to limit your losses should it rise
instead of fall."
First of all, no one considers a short position as an investment. Secondly
You place a buy stop to protect your position ... not a sell stop.
Please be careful before you hurt yourself.
704set
jim
I certainly will. Unlike most "investors" I know that I am just learning
and I only play with money I can afford to lose while learning the game.
God help the people that are actually investing their life savings.
jim
eezie
> "Dr Tormento" <re...@togroup.com> wrote in message
> news:Xns99AB6F7D3F8...@69.28.173.184...
>
>>"jim" <j...@home.net> wrote in
>>news:N2nGi.61131$U24....@bignews5.bellsouth.net:
>>
>>
>>
>>>>> From
>>>>>what I have
>>>>>read about shorting, you should also place a "stop loss" on your
>>>>>shorting by
>>>>>selling it at a pre-determined price to limit your losses should it
>>>>>rise instead of fall.
>>
>> What they're trying to tell you, and the reason nearly everyone else is
>>laughing, is that you still haven't noticed that to close a short position
>>you have to ***BUY*** the stock.
>
>
> I believe that I corrected my wording about 3 pots ago with....
Did you mean to say, "3 joints ago"?