Start Day Trading Now by Unknown
Author:Unknown
Language: eng
Format: mobi, pdf
Published: 0101-01-01T00:00:00+00:00
WHAT CAN GO WRONG
Although selling short sounds straightforward, a lot of things can go wrong. When you go long a stock, in theory you could lose everything you invested. But when you short a stock, you could lose more than you invested, which is why shorting can be risky.
For example, what if Daytraders, Inc. didn't drop by 1 point but increased in value? In that case, for every point that Daytraders, Inc. rises, you lose $100. How high can a stock go up? It's unlimited. The problem with shorting is if a stock goes up, not down, your losses are unlimited, if you don't cover or use stops.
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