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He's also probably not an accredited investor, selling a stock short in any significant volume is not like making a retail purchase. It can be quite hard to mak
by mattnewton 4y ago
He's also probably not an accredited investor, selling a stock short in any significant volume is not like making a retail purchase. It can be quite hard to make money off knowing a stock will crash, and that's not even accounting for needing to know _when_ precisely since most of the ways involve short dated options. I gave up after investigating ways to bet on interest rate hikes and market corrections, and just went cash heavy at the end of 2021. That doesn't make you a billionaire it makes you just not lose principle.
- andromeduck 4y agoMost people on HN probably are - especially those at FAANG. It's just 2 years with 200k individual or 300k combined income, or 1M NAV.
- mattnewton 4y agoTrue, this was the wrong way to phrase it on my part. What I should have said is "they probably aren't a professional investor who knows what they are doing and has access to lots of capital or leverage, and a Bloomberg terminal or whatever people use these days to locate stock to borrow and sell short".
- stillametamate 4y ago> He's also not an accredited investor I bet 50% of US-based HN readers are.
- RandomBK 4y agoBuying some puts also works.
- mattnewton 4y agobuying puts probably isn't going to make you a billionaire though? The maximum return is the difference between the strike and the lowest price before expiration, and prices generally don't drop to 0. Realistically, you would need access to a lot of leverage to become a billionaire with puts, or already be a multi-millionaire.
- throwaw20221107 4y agolol exactly (https://xkcd.com/451 https://xkcd.com/451) "i need to short a stock" "have you tried options?"
- deleted 4y ago[deleted]