3 ms·
I think the comment was more about his stock prediction. It's very easy to make confident claims about the performance of a stock when you're not invested in it
by marvin 14y ago
I think the comment was more about his stock prediction. It's very easy to make confident claims about the performance of a stock when you're not invested in it yourself. Financial opinions would be a lot more interesting if they were only given by people who followed their own advice to the letter.
- georgemcbay 14y agoJust because you believe a stock will eventually be at a lower price than it currently is doesn't mean it makes sense to short it unless you also think you can time the drop perfectly, and if you think that you're a fool. The virtually unlimited downside of shorting is a lot of risk that has to be factored into any decision and thus shorting isn't to be taken lightly even if you're pretty damn sure of your opinion.
- eru 14y ago> doesn't mean it makes sense to short it unless you also think you can time the drop perfectly, With the right options, you don't have to time it perfectly. Just good enough. You can limit the risk of shorting relatively cheaply by buying way out-of-the-money call options.