Investing Trends

Selling Short - Making money when marketplaces travel down!

The clip honored method for profiting in the market, we are told, is to "buy low and sell
high". Can't reason with that. The logic is absolutely irrefutable.

What we are not often told, however, is that the "buy low" portion doesn't necessarily
have got to predate the "sell high" part. Hence, the short sale or merchandising short!

Think about it. If you "sell high" first and "buy low" later, haven't you accomplished
the same thing? Only in contrary order? Of course, you have.

Doing the math: (2 - 1) = 1, while (-1 + 2) = 1. The reply is the same.

Applying that logic to trading, "buy low, sell high" or "sell high, purchase low", the result
is the same. Smart bargainers understand this. Are you smart?

When all is said and done, the lone thing that substances is that as long as your "buys" are
below your "sells" you will be profitable and cipher cares which came first, the "buys" or
the "sells".

In other words, what's important is the timing of the transactions.

You may have got heard that, in existent estate, it's location, location, location. In
trading the markets, it's timing, timing, timing. Don't allow anyone state you
different!

The lone ground to purchase a stock is that you anticipate it to travel up. If you don't anticipate it to
travel up, why bargain it?

Contrarily, if you anticipate a stock to travel down, don't just sit down there and ticker while it
drops. How makes that net income you? Sell it short!

If you really anticipate a stock to worsen in price, then logically, selling short orders
that you should sell at the current terms and purchase it back at some clip in the hereafter at a
less price.

Is this really any different from purchasing at the current terms and then selling at some
clip in the hereafter at a higher price? The net income is the same, either way. Buy/Sell,
Sell/Buy, what difference makes it make?