Comments on: Short a falling stock and put it in your pocket . . . http://www.goodevalue.com/2007/07/short-a-falling-stock-and-put-it-in-your-pocket/ It may be cheap, but is it a Goode value? Sun, 16 Oct 2011 22:06:46 -0400 http://wordpress.org/?v=2.8 hourly 1 By: michael http://www.goodevalue.com/2007/07/short-a-falling-stock-and-put-it-in-your-pocket/comment-page-1/#comment-6 michael Fri, 27 Jul 2007 00:04:21 +0000 http://www.goodevalue.com/2007/07/26/short-a-falling-stock-and-put-it-in-your-pocket/#comment-6 <p>I guess I should mention that this post was not very serious . . . I've had this song in my mind for awhile and just thought it would be appropriate to post it today. Shorting is a dangerous game and I know people who have been wiped out by it. One of the dumbest things to do in the market (outside of listening to Jim Cramer) is to go net short (I'm always way net long). </p> <p>Most people who try shorting (like stock options) lose money! I do not recommend this!</p> <p>On another note, for shorting there is generally no time value of money--if you short a stock that pays no dividends and it does not go up in price, you do not pay any money--the proceeds of the sale sit and earn interest for you or your brokerage. Only if the stock goes up will you have to put money into the trade and lose the time value of money.</p> <p>Oh, and thanks for writing my first comment!</p> I guess I should mention that this post was not very serious . . . I’ve had this song in my mind for awhile and just thought it would be appropriate to post it today. Shorting is a dangerous game and I know people who have been wiped out by it. One of the dumbest things to do in the market (outside of listening to Jim Cramer) is to go net short (I’m always way net long).

Most people who try shorting (like stock options) lose money! I do not recommend this!

On another note, for shorting there is generally no time value of money–if you short a stock that pays no dividends and it does not go up in price, you do not pay any money–the proceeds of the sale sit and earn interest for you or your brokerage. Only if the stock goes up will you have to put money into the trade and lose the time value of money.

Oh, and thanks for writing my first comment!

]]> By: Mike http://www.goodevalue.com/2007/07/short-a-falling-stock-and-put-it-in-your-pocket/comment-page-1/#comment-5 Mike Thu, 26 Jul 2007 23:52:39 +0000 http://www.goodevalue.com/2007/07/26/short-a-falling-stock-and-put-it-in-your-pocket/#comment-5 Nasdaq may fall badly "someday" but you are forgetting the time value of money. If that day is in 10 years before you can cover your short you may have been better buying some other investment. Nasdaq may fall badly “someday” but you are forgetting the time value of money. If that day is in 10 years before you can cover your short you may have been better buying some other investment.

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