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Playing & Trading Strategy

... or when the price has gone down from the purchase price and you 'cover' your short (which is like 'selling' it)

Posted by: Jane_Citizen on Nov 17, 16:19 in response to Professor_of_Truth's post Yikes much higher risk on shorts!! Do you take profit on...

don't forget that every trade you make (the original short or purchase, as well as the cover or sale) will cost you 1% of the value of the transaction, so you want your investment to yield enough profit to cover that.

you should read the FAQs and the glossary (links at the bottom of every HSX page under 'HELP')

Here is a question for you big timers and folks who been around the block Professor_of_Truth Nov 17, 15:12

When you short, you are saying you think the value will decrease. If you cover, or if it delists at 1.5 points less than you bought, Buy StarBondFund Nov 17, 15:23

For a small port, it's generally not a good idea to short a security unless you are fairly certain it is going to drop JohnTEQP Nov 17, 19:53

Respectfully, I disagree... I think small ports can make as much on shorting... as they can buying... Flash Nov 18, 10:37

One slight caveat to your very good, very informative post is that you can actually lose MORE than your investment when shorting a stock. Paul2k Nov 18, 11:03

Amend the Inner Message...you would be out H$4 million total- the 1 mill you invested, plus 3 million on top of that. {nm} Paul2k Nov 18, 11:21

That's true, and I should have mentioned that...thanks for the additional info as well. {nm} Flash Nov 21, 08:21

I should clarify - not a good idea for a small port to short options JohnTEQP Nov 20, 16:56

Yikes much higher risk on shorts!! Do you take profit on shorts when the movie flops or??? {nm} Professor_of_Truth Nov 17, 15:41

There are many variables. The profit/loss come from when you buy/short versus when you sell/cover. Delist occurs 4 weeks after release dioneta Nov 17, 16:18

... or when the price has gone down from the purchase price and you 'cover' your short (which is like 'selling' it) Jane_Citizen Nov 17, 16:19

Short and Cover go together like Buy and Sell srrichardson Nov 18, 06:57

To see how far negative you can go - check out negative port for "Bottom_of_the_Barrel" {nm} nordane Nov 23, 10:19





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