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Re: $tock_Killa post# 18776

Wednesday, 05/26/2010 11:15:30 PM

Wednesday, May 26, 2010 11:15:30 PM

Post# of 64330
This is the same as the naked short list? Been wondering if there is more money in shorting than going long. I am just gotten so comfortable buying stock with money I have and hoping for the best. As far as I understand it shorting is basicly borrowing the shares from a lender then selling the shares and then having to buy more shares to return the ones I borrowed (covering). So the shorter hopes that the stock goes down not up after borrowing the shares. So if I were to borrow today 100k shares at .08 or 8000 dollars and it dropped to .04 I would make 4000 dollars on the deal. Also if the stock were to go up to .16 a value of 16000 PPS then I would be in the hole 8000 dollars once I had to cover my 100k worth of shares I borrowed. Standard time is three days. It would seem that this particular stock almost reliably drops after a run up so it would be much easier to short than to long?? IF I have this correct the only danger to the shorter is If the stock runs up for more than three days which has not been a problem since oct 2007. Is it safer to short than to long and is there more money in shorting? The only down side I can see is you dont have any real control of how much debt you incur should it decide to run hard. Also what happens if the stock runs past your means to repay>?