Part 5 of 12 part Short Story on Short Selling series. Short sellers need judgement, vision and timing to be effective and profit. As well, short sellers must have a keen market awareness and a broad vision.
Tag Archives | speculating
Part 2 of 12 part Short Story on Short Selling series. Investors that short a stock, profit by selling shares they don’t own. Without your knowledge, a short seller may have borrowed stock that you own. The loan comes from your stockbroker’s inventory which includes the stock you hold.
A large risk, even the chance of a possible total loss of an investment for a potentially huge gain defines speculation. Investors can speculate on any company from the largest to a tiny startup. The odds and gains reach the most extreme among the junior and startup companies. By discussing this topic I hope to make beginning investors aware of the extreme and very real risk of total loss. No beginner should consider or have anything to do with any speculative investing play.
Classifying investment strategies into five broad groups arranged low to high risk, Income, Value, Growth, Trading, Speculation, helps new investors understand some of their many investment choices. Choosing from these investing strategies can set you on the path to financial security. While there are numerous variations within each broad strategic group; no strategy offers the impossible: risk free investing.
3 Times yes or investors say no! The economy, market and company must all say yes or we answer no! White Top View series: Playing Market Odds, discusses how superior investors play market odds and avoid common investment errors. This Part 3 of the series, covers how superior investors wait for three positive signals before investing. Before investing we research the facts on the economy as well as the market and company. The economy, market and the company information must all give positive signals or we say no to investing.
Headline news warnings and stock market risks explained as possible market overreactions. Reactive trading and emotions can drive market action. At such times, turmoil, not smart investing decisions, drive markets. To avoid being spooked, and trading with your emotions, inform yourself, do your homework and take the long view.
Investors can ride growth stocks with traders. Strategies differ, but income seekers can join traders seeking gain by riding growth stock opportunities. Both income and equity growth seekers can find growth stocks that produce results.
6 Lessons From A Speculation Loser. Let this be a lesson for you! Speculations fail fast, courts kill money, never average down, sell losers, psych games cost, litigation is risky.
Investing trading and speculating differ; in both approach taken to the market and how long a position gets held each strategy has fundamental differences.
The trading approach to the stock market lies in the middle of the risk spectrum while overlapping the other basic approaches. That puts it between a conservative investing strategy based on profit making companies and aggressive speculative strategies. For consistency we will refer to all plays that accept high risk seeking significant short term rewards […]