Can someone explain to me why it would be a bad idea to short the fuck out of this stock? I’d like to make money and be a principled human at the same time, but I’m not well versed in the stock market.
It’s a bad idea because shorting requires a settlement date.
You can’t keep a short the same way that you keep an investment. You need to predict at what time it is worth less than it is now.
It’s also a bad idea, because you can lose more than you invest. If you buy a stock, you can only lose the purchase price of that stock.
If you short it, there’s no upper limit to how much you can lose if the stock keeps rising. The people holding the stocks will do anything to keep inflating the stock price, even if it’s evident to everyone that it is a bubble.
As long as they can keep throwing money at it, they can keep the price going up.
Can someone explain to me why it would be a bad idea to short the fuck out of this stock? I’d like to make money and be a principled human at the same time, but I’m not well versed in the stock market.
It’s a bad idea because shorting requires a settlement date.
You can’t keep a short the same way that you keep an investment. You need to predict at what time it is worth less than it is now.
It’s also a bad idea, because you can lose more than you invest. If you buy a stock, you can only lose the purchase price of that stock. If you short it, there’s no upper limit to how much you can lose if the stock keeps rising. The people holding the stocks will do anything to keep inflating the stock price, even if it’s evident to everyone that it is a bubble. As long as they can keep throwing money at it, they can keep the price going up.
This is a good reason not to short.
This is an even better reason not to short.
Thanks for the reply. This is the first time someone has explained stock options so simply to me.
Its the explanation of the old adeage “the market can remain irrational longer than you can remain solvent”
The market can remain irrational longer than you can remain solvent.
touché
You’re a dog you can’t legally invest
Check the rules! I once heard there was no rule that a dog couldn’t be in the NBA.
I think dogs should have the right to vote.
Considering how much dogs seem to hate Trump, agreed.
If you have 5 to 10 years, and can afford to lose the money, it sounds like a great idea
Yeah that’s the thing about shorting. Nobody knows how much that is. It’s potentially infinite.
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