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+---- Thread: how/where to short? (/thread-8408.html)
how/where to short? - Breand - 12-03-2010
I finally wanted to try shorting a stock the other day (Netflix, which has gone down 6% since I wanted to do the short) but noticed Sharebuilder doesn't even allow it. Do any of you guys do it, and if so, how?
Re: how/where to short? - Vanraw - 12-03-2010
I don't short anymore because of the risk of unlimited loss. I tend to use options, so that if I get my ass kicked, I know exactly how bad it is.....
I have use etrade in the past, one of the trade options is "sell short".
Note that you have to have credit / margin ability. It is a loan.
Re: how/where to short? - Breand - 12-03-2010
well, unlimited if a company could have infinite value
Re: how/where to short? - Vanraw - 12-06-2010
Yea I know. I just know some folks that got seriously burned shorting AOL back in the day.
Imagine if you would have shorted Apple at 85.3 on March 6th 2009.
100 shares at $8,530
Now its trading at 317
100 shares $31,700
A $23,170 loss on a $8.5k investment.
Like I said I used to naked short, and then I learned the hard way that guessing highs and lows is a fools game, and I was the fool.
Re: how/where to short? - Grieve - 12-06-2010
Yeah, I've shorted (via eTrade) before, but I think buying puts are a better strategy - limit your downside, while having more potential upside (via the leverage).