A beginner's guide to short-selling. Part 3.
I intended to keep this guide short and in Part 1 and Part 2, most of the practical aspects of shorting has been covered. The remaining stuff really relates to fundamental or technical analysis of stocks themselves. Short-interest ratios, days-to-cover, and so on. Since this is not the fun part, but useful information anyway, I try to define some of these terms and others in my first post on an actual biotech stock in a few days.
In the meantime, look at the CARN (Carrington Labs) chart for fun. If you had recognized this as a short opportunity at $50, then you would currently be $43 ahead for every share you put out at $50. Which is the same as having invested $7 in a stock that now trades at $50.
If there any other questions, post them here and I'll get around to them or if anyone else would like to answer, then please do.
Always remember, however, that just because you read it on the 'Net does not make the information any more (or less) reliable. The most important thing about investing or shorting is to do your research and feel comfortable about the decisions you have made.
Kafka666 |
