HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
One slight caveat to your very good, very informative post is that you can actually lose MORE than your investment when shorting a stock.
When you buy a stock, the most you can ever lose on it is the amount you originally put in, because the lowest the stock can go is 0.00. So, if you bought 100k shares of a stock at 10 dollars, the most you could lose would be the 1 million H$ you invested.
However, the upper limit of what you could lose if you short a stock is theoretically infinite. If you short 100k shares of a stock at H$10, that stock could theoretically go up and up and up to infinity and beyond. More realistically, that stock could go up to H$50 a share, at which point you would be out the H$1 million you invested, PLUS you would OWE H$4 million more to cover the rest of the position.
Here is a question for you big timers and folks who been around the block Nov 17, 15:12
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 Nov 17, 19:53
Respectfully, I disagree... I think small ports can make as much on shorting... as they can buying... 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. 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} Nov 18, 11:21
That's true, and I should have mentioned that...thanks for the additional info as well. {nm} Nov 21, 08:21
I should clarify - not a good idea for a small port to short options Nov 20, 16:56
Yikes much higher risk on shorts!! Do you take profit on shorts when the movie flops or??? {nm} Nov 17, 15:41
... or when the price has gone down from the purchase price and you 'cover' your short (which is like 'selling' it) Nov 17, 16:19
Short and Cover go together like Buy and Sell Nov 18, 06:57
To see how far negative you can go - check out negative port for "Bottom_of_the_Barrel" {nm} Nov 23, 10:19