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Can someone who knows more about the practical aspects of shorting stoks as an individual investor opine on how one would try to profit from Hindenburgs reports
by rand846633 3y ago
Can someone who knows more about the practical aspects of shorting stoks as an individual investor opine on how one would try to profit from Hindenburgs reports? (Let’s say if one can aford to loose 100k)
I am aware of the risks of shorting and have no inclination to do so. I’d just like to hear the considerations of someone well versed in this kind of activities.
- c_o_n_v_e_x 3y agoYou get a margin account from your broker and request permission for shorting... then open a position by selling x number of shares of the stock (assuming the stock is available to short). You make sure you have enough $$$ in your account so that in the event of the stock price going up, you aren't forced to sell at a a loss. Grossly oversimplifying things, rather than short, you can also buy put options on the stock which will increase in value if the stock goes down. Taking an options position is far more time sensitive than an outright short.