http://www.theinvestorsjournal.com/introduction-to-short-selling Realistic Advice For Successful Investing Sat, 05 Nov 2011 17:45:27 +0000 hourly 1 http://wordpress.org/?v=3.1.4 http://www.theinvestorsjournal.com/introduction-to-short-selling#comment-132 J.D. Fournier Sun, 13 Jan 2008 01:10:21 +0000 http://www.theinvestorsjournal.com/introduction-to-short-selling/#comment-132 Short selling has unliimited downside and limited upside. You also incur interest payments on borrowed shares. Another strategy is to buy put options. The gains are greater with the same movement in stock, however there is also the time element. Although options and short selling can also be used with ETFs as a hedge or wager on the indices, I don't engage in those practices myself. Selling covered calls of stocks you plan to sell anyway can make you a little extra change, but the long term investor should stick to staying long in the market. The short term investor should stick to money markets or CDs. Short selling has unliimited downside and limited upside. You also incur interest payments on borrowed shares. Another strategy is to buy put options. The gains are greater with the same movement in stock, however there is also the time element. Although options and short selling can also be used with ETFs as a hedge or wager on the indices, I don’t engage in those practices myself. Selling covered calls of stocks you plan to sell anyway can make you a little extra change, but the long term investor should stick to staying long in the market. The short term investor should stick to money markets or CDs.

]]>