Category Archives for 5th Guide – Advanced Stock Market Investing
Shorting stocks has risks
Part 12 of 12 part Short Story on Short Selling series. Shorting stocks is hard. Discusses the psychology, the hard, demanding, taxing play and the three best short characteristics. Last of the White Top Investor twelve part series on selling short. Knowing of this one especially challenging aspect of the stock market helps new and experienced investors reach a better level of understanding markets. Although shorting stocks is hard, and not for beginners, for their benefit and to best understand the market, they must be aware of it.
Read More9 Short seller facts align
9 Short seller facts align before short sellers target a company. That means, experienced, knowledgeable short sellers know when the stock market and company facts favor a short play. They know the market, company, and sector facts as well as the timing, costs, price, and rules that must be played with the right short strategy. All that makes short selling a complicated strategy. Therefore it is a strategy for experienced, knowledgeable players.
Read MoreIntroduction to short story shorting stocks
Part 9 of 12 part Short Story on Short Selling series. Short trades profit when stock prices fall Selling short is a type of stock trading and the opposite of an investor buying long. Rather than the usual buy low, sell high, short sellers do the reverse and sell high, buy low.
Read MoreRacing for profits drives high frequency trading
Racing for profits drives high frequency trading forward as powerful allies integrated the technology that changed markets and investing. That race can seem like an inside the game for profit, but large and small investors are all on the outside. Still, investors must bare the costs of HFT being set loose on markets. This is illustrated on the included infographic of stock market technology development that traces the race for profits to the development of HFT.
Read MoreShort selling improves companies
Part 10 of 12 part Shot Story on Short Selling series. Part 10 covers four more positives of short selling, Management Accountability, Forced Priority Changes, Contrarian Expressions, Unique Analytics. Short selling attacks produce falling prices and get responses. Forced accountability of both management and boards. Short selling can make new issues a corporate priority and short selling allows expression of contrarian views. Finally, short selling produces unique analytics useful to all investors.
Read MoreShort selling improves markets
Part 9 of 12 part Short Story on Short Selling series. Part 9 discusses how short selling improves stock markets. Included are 7 ways: Liquidity Increased, Price Discovery Improved, Increases Market Activity, Forces Management Accountability, Prioritizes Corporate Issues, Expresses Contrarian Views, Produces Unique Analytics. It is an important part of the overall investing scene. Short selling brings benefits that help create a healthy and efficient stock market. That benefits all investors, short or long as well as the economy.
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