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This thread is about Shorting stocks.
https://www.fool.com/investing/how-to-invest/stocks/shorting-a-stock-meaning/.
Basics are here. Shorting makes sense when you have huge downside for a stock value. Shorting is very risky but also rewarding if one is disciplined and follow / study the stock price movement and also be able to read charts. One has to figure out gaps in the chart and trade those gaps. It is better to short stocks that are traded in huge volumes several millions rather than thinly traded biotech stock.
Some stocks have a huge short float, 30 percent, this is risky, as some mergers, market moving news can go against your position and huge bear market rallies. It might be better to scalp a little and not stay short for long duration
Next if you make gains short term, less than a year, that is considered income and taxed at 40%
https://www.fool.com/investing/how-to-invest/stocks/shorting-a-stock-meaning/.
Basics are here. Shorting makes sense when you have huge downside for a stock value. Shorting is very risky but also rewarding if one is disciplined and follow / study the stock price movement and also be able to read charts. One has to figure out gaps in the chart and trade those gaps. It is better to short stocks that are traded in huge volumes several millions rather than thinly traded biotech stock.
Some stocks have a huge short float, 30 percent, this is risky, as some mergers, market moving news can go against your position and huge bear market rallies. It might be better to scalp a little and not stay short for long duration
Next if you make gains short term, less than a year, that is considered income and taxed at 40%