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You can certainly make money by shorting stocks, but you didn't say 'what' you were shorting?

Posted by: Flash on Sep 11, 08:00 in response to leegend's post New idea? Make a mint ONLY with shorts

IPO's? Bonds? Openers? Calls? Puts?

When I started playing here HSX did not offer 'shorting' as any type of option, so when I played an opener, I either had to buy it and hold it over opening weekend, or sell it off before it halted opening weekend if I didn't think it would adjust up.

Shorting is a great way to earn money, but just like holding a stock long there is no way to tell if the security you're shorting will drop in price - unless it's a bond that may be adjusting down.

Personally, I don't trade much any more, but I do short opening movies that I don't think will adjust up. I always short movies that adjust high - anything over $50 or so, will "almost" always drop a few points after adjusts - people sell off and move on. Movies that adjust over $100 will likely (not always) drop 7-8 points or more after adjusts...

Sure shorting can be a way to make money - but remember, you can also lose MORE than your original investment with a short...if I short a stock at $10, and it adjusts up to $30, then I've lost much more than my original investment, so be sure you know that.

Then, there's someone like me, who - when Spiderman 2 came out, I shorted it, thinking it wouldn't adjust past the price it was selling at....I lost $5M on that adjust alone... shorts can make you much - or lose you much....

New idea? Make a mint ONLY with shorts leegend Sep 11, 03:02

The Ampersand has an article on the Short Em All strategy. Interesting read. But in part 2 the writer goes on to say it may not be as Carlion Sep 11, 04:59

i have toyed with the idea of pitching a short only fund to Dmac {nm} ndmaster Sep 11, 11:43

I think it's been pitched before and rejected. But that shouldn't stop you from pitching it yourself. {nm} RogerMore Sep 11, 14:37

I'd like to see that. I'd like to see funds with creative trading strategies, rather than just theme funds. {nm} Carlion Sep 11, 18:03

Theme fund managers have their strategies - they're just less obvious and they depend on the manager's own trading style {nm} RogerMore Sep 12, 05:42

Sure, everyone has their strategy. I'm just saying I'd like to see a fund where the theme "is" the strategy. Carlion Sep 12, 06:34

I thought about trying to short only overpriced stars, but it's too limited {nm} leegend Sep 12, 14:44

I'm thinking more like fund speed profits than winning a YTD race {nm} leegend Sep 11, 15:17

You can certainly make money by shorting stocks, but you didn't say 'what' you were shorting? Flash Sep 11, 08:00

Lets just say that a lot of IPO's drift down, to termially penny stocks, or very low, until real activity such as hiring a Director, Casting StarBondFund Sep 11, 10:10

Oh, I agree about IPO's drifting down Flash Sep 12, 10:26