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Playing & Trading Strategy

You can have a negative portfolio value and still have cash. Your investments just need to be worth less than your cash on hand.

Posted by: firefox on Jan 22, 09:34 in response to Raven9167's post Could someone explain how a negative port works?

The tricky part is trying to keep positive cash as long as possible. At this point I have about $158 million in negative cash so I am not able to make trades. I cannot cover and re-short any stocks that have dropped in price so I am just an observer now.  I still have quite a few stocks in my portfolio so I am hoping that some day I will pass the few players that are below me.

When you are getting low on cash, you don't want to be holding anything that will delist short term and leave you with negative cash. You want to be able to keep re-shorting so there is a fair bit of strategy to it and it is certainly not easy to get below negative $200 million.





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