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Tips and Tricks

DO NOT SHORT-SELL IN THE INITIAL DAYS

You can make money in the stock market, even when the price of a stock is falling. Known as short-selling, it is the opposite of placing a buy order. With a buy order, you first purchase the shares at a particular price and then sell the same probably at a higher price. The difference in price multiplied by the number of shares you have purchased will be your profit.

With short-selling, you first place a sell order at a particular price and then buy the same probably at a lower price. The difference in price multiplied by the number of shares sold will be your profit. While short-selling allows you to take advantage of a falling market, you should avoid using it when you are still new. Master the basic buy-and-sell order first before experimenting with sell-and-buy.

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