Nice video. It was helpful, I was able to learn a few important things from this video. I am new to Youtube, can you please check out our most recent video and give me your honest opinion?
It all depends on your own goal. Suppose you want to keep the buy for a month, and you think that the stock may fall or consolidate next week. Then you short it to profit next week while keeping the buy.
Once you lock in your profit with buy and short of the same stock, it does not matter where the price goes. You can get rid of both positions any time in the future.
There are many ways to play depending on your goal.
If you’ve bought a stock and plan to hold it for 2 months, you can short the same stock in another account. When the price comes down in the intervening period, you make a profit on the short.
But if the price goes up and up, then you’re screwed.
But who knows where the price will go?
You bought 100 BHP shares at $35 and they’re currently trading at $40. You see a turn in the market and you short them and they go down to $35, close your short position and take a $500 profit on that. 8 or 9 weeks later they’re back at $43 so you close your long position for a $800 profit and maybe received some dividends in between.
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Keep the videos coming……… the behavior and the intentions of the big guys is really quite interesting
Nice video. It was helpful, I was able to learn a few important things from this video. I am new to Youtube, can you please check out our most recent video and give me your honest opinion?
very nice
why lock in your profits? Why not just sell and cash in?
It all depends on your own goal. Suppose you want to keep the buy for a month, and you think that the stock may fall or consolidate next week. Then you short it to profit next week while keeping the buy.
Once you lock in your profit with buy and short of the same stock, it does not matter where the price goes. You can get rid of both positions any time in the future.
good luck finding stocks that double like that
There are many ways to play depending on your goal.
If you’ve bought a stock and plan to hold it for 2 months, you can short the same stock in another account. When the price comes down in the intervening period, you make a profit on the short.
But if the price goes up and up, then you’re screwed.
But who knows where the price will go?
What hes trying to say is this:
You bought 100 BHP shares at $35 and they’re currently trading at $40. You see a turn in the market and you short them and they go down to $35, close your short position and take a $500 profit on that. 8 or 9 weeks later they’re back at $43 so you close your long position for a $800 profit and maybe received some dividends in between.
it makes perfect sense. Its called hedging.
@antoset83 can you explain more please