Sitting Tight; isn’t that what Newbie investors are encouraged to do?
Admittedly, I barely know the basics beyond that advice, but I am slowly piecing it together.
I’ve been DIY-crash-coursing on investing and crypto. Read some opinions on whether gold or crypto are better…BORING. Who knows? It’s a gamble.
When I say I am piecing it together, I mean I’m really stumbling across puzzle pieces of info and trying to find how they fit to create a big picture. One little puzzle piece had me furrowing my brow.
I wanted to understand the idea “short it.” Again, these concepts are fuzzy to me. Like an Impressionist painting or trying to see without my contact lenses: my vision of how this term plays out in real life is limited to the lense I can apply.
I found out what it means after reading posts on no fewer than five different websites.
Get this, and by the way…what kind of huevos does it take to think this works? And it does work. A person – who already has money to play with at this particular “gaming table” – borrows stock from a broker willing to lend it (and this isn’t even the owner of the stock). They borrow the securities or stock which they are sure will go down in value, and then they actually sell it. The bet is that the stock value will fall super low, in which case, they buy it back, at the super low price. Then return it, like no big deal (!), at the price they originally “borrowed” it at. This is how I understand it, anyway.
These risktakers make the money on the difference, as long as there IS one! Or it doesn’t go up in value, or, or, or…or only things people who have lived through despair and broke-ness, like me, worry about. These folks are fearless gamblers, and God Bless ‘Em, it pays off. Most of the time. I think.
Are you kidding me? How do mere mortals like me get into this “short” club? IDK. I wanted to learn. IMHO, the most helpful site for me was Bullishbears.com. I dug in, and now I understand that I am not ready for this. My level of personal risk is…well, I don’t have enough fun tickets for this ride. Maybe I can get there, we shall see, but for now, I’m entertaining myself with the crypto roller coaster. Going mainly down, oops.
Apparently, I got in a few days after the 50% spike, OF COURSE I missed it, but that was covered in my last post. So, I watched it come back. And I watched it go down. And I was set on getting rid of my OATLY because it’s just sitting there. I was hoping it would come back up to what I paid for it, but it’s not looking that way. I just CANNOT have my first sale be at a loss, PLEASE! Luckily, we’re not talking about very much money, so I’m just going to hang on.
However, the Nintendo…Wow. Can it go down more? Will Christmas save Nintendo?? I thought BTS would save Nintendo last week, and if those pop star demi-gods can’t save them, I’m not sure Santa Claus can either. I can see the infamous queue of container ships from one of my beach walks spots…any way I can give them a hand? Which one has the Nintendo stuff?
If only the Nintendo stock weren’t mine, because then I could have shorted it! Hahahahah.
Really though, my tip for us newbies is check out Bullishbears.com. They don’t know me; I don’t know them. This is just me saying check it out for your self-edification journey.
I’m working on another post about “Self-Edification.” You see, I’ve been job hunting. My day job was kind of a band-aid to stop the financial bleeding after closing a business of 14 years, and I have not yet been able to get back to where I was before.