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Strategies & Market Trends : ZenWarrior's Trading Paradise

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To: p40warhawk who wrote (283)4/3/2001 10:47:00 AM
From: FLACK  Read Replies (1) of 2462
 
p40

>>Shorting
Let's see if I understand this shorting business correctly.

First you borrow a stock that you don't want and immediately sell it for more than you think it is worth.

Then you root for disaster to hit that stock so that you can buy it back cheaper and repay your creditor with less than you borrowed.

Is that somewhere in the ballpart?
p40warhawk<<

That's pretty much it...
you borrow the stock from someone who thinks you're crazy,
because they think it's going to go UP.
This is the "game" you and I have talked about many times...
even though you don't agree that it is a game.
While shorting is an available option to anyone,
it's the black sheep of the market... and that's the
way the institutions want to keep it.
It's their tool and they say and do everything they can
to convince the retail investor that it's dangerous, evil,
and no decent, right-minded person should even consider
it as a trading option.
Do they ever recommend that we should sell?
Nope.
They want more and more of our money in the market
so they can do their "game".
It's our job to learn all the rules of the game,
which includes shorting.
That doesn't mean that we HAVE TO short.
It simply means that we better understand the principle
and how the institutions manipulate the market.
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