quote:Originally posted by phuzzie: ok, makes sense. just curious how the public is able to profit from the stock going down?
matt
You buy a stock from your broker say xyz at 1.00 a share for 1000 shares and sell it, then if it drops to .50 a share you buy it back and replace the 1000 shares with your broker and pocket the 500.00 of course if it goes to 1.50 a share you still have to replace it and that costs you 500.00
Posts: 1169 | From: Pollock Pines Ca | Registered: Feb 2004
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posted
You mean "borrow" the stock from your broker temporarily Poorman... then sell it.. say sell it at $5,000 and wait for the price to drop so u can buy it back cheap and give it back to the broker and the difference from the sell price and the buy back price is ur profit... so if u sold it at $5,000 and it dropped to $1,000.. u buy it back at $1,000 give it back to the broker the "borrowed" stock and the $4,000 difference is your profit... if your interested Toni Turner has a video on selling short for beginners.. its on her site.. www.toniturner.com .. hope this helps... good luck.. :-)
Posts: 4669 | Registered: Mar 2004
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