Short Sale Technical Details -- Stock Trading Analysis (11)
Uploader Comments (stockfessor)
All Comments (17)
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Thoughtful video and analysis... thumb up
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Over the summer I made some good money on LBSR. I took 50% profit every time the stock value rose 100%. If i had of cashed in on the first 100% I would have missed out on like 4 or 500% that I made when the stock rose further.
Of course if the stock lost value after the first sale it would have been a different story, but since you took profits already you haven't lost anything.
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Maybe he'll sell them when he retires at 65 and pay $0 tax as a self funded retiree
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@antoset83 can you explain more please
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What hes trying to say is this: You bought 100 BHP shares at $35 and they're currently trading at $40. You see a turn in the market and you short them and they go down to $35, close your short position and take a $500 profit on that. 8 or 9 weeks later they're back at $43 so you close your long position for a $800 profit and maybe received some dividends in between.
it makes perfect sense. Its called hedging.
why lock in your profits? Why not just sell and cash in?
PIMP16108 3 years ago
It all depends on your own goal. Suppose you want to keep the buy for a month, and you think that the stock may fall or consolidate next week. Then you short it to profit next week while keeping the buy.
Once you lock in your profit with buy and short of the same stock, it does not matter where the price goes. You can get rid of both positions any time in the future.
stockfessor 3 years ago