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Does anyone short individual stocks

madhu

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This thread is about Shorting stocks.

https://www.fool.com/investing/how-to-invest/stocks/shorting-a-stock-meaning/.
Basics are here. Shorting makes sense when you have huge downside for a stock value. Shorting is very risky but also rewarding if one is disciplined and follow / study the stock price movement and also be able to read charts. One has to figure out gaps in the chart and trade those gaps. It is better to short stocks that are traded in huge volumes several millions rather than thinly traded biotech stock.

Some stocks have a huge short float, 30 percent, this is risky, as some mergers, market moving news can go against your position and huge bear market rallies. It might be better to scalp a little and not stay short for long duration

Next if you make gains short term, less than a year, that is considered income and taxed at 40%
 

Voodoo

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Sure... i think my fortitude is better shorting stocks but it tales a larger margin account. It also takes more disciplime to cober when it rallies. I learned that lesson shorting AZO. Crap compnlany but still ran to 2,000. Made some shorting MRNA but could havr held longer. Now short RCL and a little PLAY.
 

Someone_else

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madhu

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in California it comes out as 40%?

shorted Okta, lulu, Ba and covered.

gap down stocks to watch baba, viac,bbig, aa
 
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solarion

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Much better in nearly any situation to buy a put than short a stock. Short = unlimited losses if the trade moves against you...while a put cannot cost one more than the cost of the contract...even while gains are essentially unlimited.

The risk/reward is simply not there when it comes to selling shares short.
 

EO 11110

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i continuously short indexes via etf's. just to dampen volatility of a retirement account composed of dividend payers

solarion - should i be using puts? if so, how?
 

Voodoo

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Much better in nearly any situation to buy a put than short a stock. Short = unlimited losses if the trade moves against you...while a put cannot cost one more than the cost of the contract...even while gains are essentially unlimited.

The risk/reward is simply not there when it comes to selling shares short.

The problem is premiums are too damn high and you have to worry about timing. I made more shorting the stocks but if uou time it well puts give u gd leverage. Yeah i know there are complex trades but i havent made that work well yet. Plus its just not an option for my small account for 200+ prices stocks.