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Started By
Message
Best sources to study to learn shorting
Posted on 11/15/22 at 10:54 am
Posted on 11/15/22 at 10:54 am
Looking for recommendations. It's something I've never tried or experimented with.
17
Posted on 11/15/22 at 11:35 am to Auburn1968
Find companies/indexes you think are overvalued.
Borrow shares to sell at high price.
Buy shares back at lower price to cover the loan.
???
Profit on the difference between high short sell and your cover price.
Or lose everything if you guessed wrong and stock price continues to rise.
Borrow shares to sell at high price.
Buy shares back at lower price to cover the loan.
???
Profit on the difference between high short sell and your cover price.
Or lose everything if you guessed wrong and stock price continues to rise.
Posted on 11/15/22 at 11:59 am to Auburn1968
Think or Swim app has a paper trading function (fake money), you can play with it there
Posted on 11/15/22 at 12:12 pm to Auburn1968
Follow Jim Chanos...
Posted on 11/15/22 at 1:31 pm to Auburn1968
It’s too late baw
Shoulda shorted last November
Shoulda shorted last November
Posted on 11/15/22 at 1:32 pm to Auburn1968
quote:
Looking for recommendations. It's something I've never tried or experimented with.
Read 1) Confidence Game by Bill Ackman 2) Fooling some of the people all the time by Einhorn
This will give you a good look into the research done by a short. Not sure of any other books or courses but these are a start.
Posted on 11/15/22 at 2:06 pm to Auburn1968
just short futures.
read TRADING BY THE BOOK by Joe Ross if you have no clue how to trade commodities/futures
read TRADING BY THE BOOK by Joe Ross if you have no clue how to trade commodities/futures
Posted on 11/15/22 at 2:34 pm to Fat Bastard
Easiest way to short a stock with minimal risk is to buy a put on that stock. Stock goes down you sell the put and profit. Max you'd lose is what you paid for the option.
Posted on 11/15/22 at 2:35 pm to Auburn1968
Second Leg Down
End of thread
End of thread
Posted on 11/15/22 at 4:18 pm to Chucktown_Badger
Agree 100%. I am comfortable outright shorting the indices, but outright shorting an individual stock could easily find you owing more than your original investment and that's too much stress to worry about at night. Put options are a much safer way to bet on an individual stock going down than shorting actual shares.
Posted on 11/15/22 at 4:26 pm to Auburn1968
LINK
This guy turned a few thousand into a few million shorting the backside of pump & dumps. In that link he shows some of his worst trades when he was learning and some of his best trades later on.
FWIW he doesn't recommend anyone short unless they've made a million or more on the long side first.
This guy turned a few thousand into a few million shorting the backside of pump & dumps. In that link he shows some of his worst trades when he was learning and some of his best trades later on.
FWIW he doesn't recommend anyone short unless they've made a million or more on the long side first.
Posted on 11/15/22 at 6:07 pm to Auburn1968
Shorting is orders of magnitude harder than being long.
Posted on 11/15/22 at 6:39 pm to Chucktown_Badger
quote:
Easiest way to short a stock with minimal risk is to buy a put on that stock
I agree. If you’re directionally right on your play, the leverage provided by options will deliver (much) higher returns on capital at risk and the transaction costs are typically lower than pure shorting. And if you’re wrong on a net long option (or debit play), your losses are 100% defined - unlike shorting, where losses are undefined... plus many people don’t realize that margin requirements can change in a heartbeat if a stock starts to run.
To each his own. But I’ve been trading for a few decades now, and while I have been known to sell undefined risk naked calls on occasion (necessary when I sell strangles), I do not (and will likely never) execute a pure short on an equity. I like my house. I’d rather not lose it by playing with fire. People like Chanos are in a completely different league than the average retail trader.
Posted on 11/16/22 at 5:48 am to Chucktown_Badger
quote:
Easiest way to short a stock with minimal risk is to buy a put on that stock. Stock goes down you sell the put and profit. Max you'd lose is what you paid for the option.
This is a great strategy for shorting and one I try to follow. If you think a market/stock is due for a plunge, take a few % of your money and buy out of the money puts.
Posted on 11/16/22 at 8:22 am to RidiculousHype
quote:
FWIW he doesn't recommend anyone short unless they've made a million or more on the long side first.
Since this is more gambler talk than investment talk, I would recommend only shorting with house money.
This post was edited on 11/16/22 at 10:02 am
Posted on 11/16/22 at 9:06 am to Auburn1968
Why would anybody short when put options are safer and just as lucrative? The question I would ask
Posted on 11/16/22 at 9:21 am to Auburn1968
Thanks all. Much appreciated info.
Posted on 11/16/22 at 12:36 pm to DTRooster
quote:
Why would anybody short when put options are safer and just as lucrative? The question I would ask
Theta decay and volatility premium add more complexity than almost any human can handle. You can be "right" and still lose a lot of money.
Posted on 11/16/22 at 12:53 pm to RidiculousHype
That’s true but at least I know how much but you can be wrong shorting an individual stock and lose all of it plus some
Posted on 11/16/22 at 1:49 pm to Auburn1968
Careful
Losses are unlimited
Losses are unlimited
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