If You Want To Make Money Invest In This IPO

Copy Ninja

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what does this mean?

Shorting, or short-selling, is when an investor borrows shares and immediately sells them, hoping he or she can scoop them up later at a lower price, return them to the lender and pocket the difference.

To add on what @G.O.A.T Squad Spokesman posted, for example if Beyond Meat was trading for $150 per share and you think it's going to go below $150, you would take a short position by "borrowing" from a broker 100 shares and selling them on the market @$150 per share. If it goes to $140 per share and decide to buy back the 100 shares @$140 per share, you would pocket the difference of $150-$140 = $10 x 100 shares = $1000.

But let's say it goes up to $160 per share, you would have to cover that difference of $10 per share when you buy it back (you would owe/lose $1000). The real danger is if it keeps going up and short sellers are desperately trying to buy back shares they borrowed because they are losing money, it increases the demand thus making the price go even higher. Theoretically, you can lose much more than the 100% of your original investment.
 

BaldingSoHard

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your not, I just copped a couple of shares, first time doing it too. ain't missing this train like I did bit coin

iu
 

CoryMack

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To add on what @G.O.A.T Squad Spokesman posted, for example if Beyond Meat was trading for $150 per share and you think it's going to go below $150, you would take a short position by "borrowing" from a broker 100 shares and selling them on the market @$150 per share. If it goes to $140 per share and decide to buy back the 100 shares @$140 per share, you would pocket the difference of $150-$140 = $10 x 100 shares = $1000.

But let's say it goes up to $160 per share, you would have to cover that difference of $10 per share when you buy it back (you would owe/lose $1000). The real danger is if it keeps going up and short sellers are desperately trying to buy back shares they borrowed because they are losing money, it increases the demand thus making the price go even higher. Theoretically, you can lose much more than the 100% of your original investment.

Never been big on the markets. Not gonna lie what you wrote still kinda reads like Chinese to me. Gonna have to read this a couple more times to digest it and see the big picture, but thank you for putting it in layman’s terms.
 

winb83

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Never been big on the markets. Not gonna lie what you wrote still kinda reads like Chinese to me. Gonna have to read this a couple more times to digest it and see the big picture, but thank you for putting it in layman’s terms.
You borrow somebody else’s stock then immediately sell it. In theory the stock price falls and later you use part of the proceeds of the borrowed stock you sold to buy it back at the lower price. You keep the difference between what the borrowed stock sold at and the lower price you bought back in at. If the stock price rises then you have to buy back in at a higher price and you lose money.

Everyone knows this stock will drop in price. The problem is nobody really knows when. If you can figure out when then you can short it. This is a stock that’s selling for far more than it’s actually worth and as people see it rise they want in on the profits so they either buy or short it causing the price to go up more.

The bubble at some point will be too large and pop. The greedy people holding this stock who more than doubled their money at this point will lose out on a lot of profits when that happens. Hell it fell 20% yesterday. There’s nothing holding this stock up but greed, hope, and the fear of missing out. Think Bitcoin when it was worth like $20K before it fell to $3K.
 

broller

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You borrow somebody else’s stock then immediately sell it. In theory the stock price falls and later you use part of the proceeds of the borrowed stock you sold to buy it back at the lower price. You keep the difference between what the borrowed stock sold at and the lower price you bought back in at. If the stock price rises then you have to buy back in at a higher price and you lose money.

Everyone knows this stock will drop in price. The problem is nobody really knows when. If you can figure out when then you can short it. This is a stock that’s selling for far more than it’s actually worth and as people see it rise they want in on the profits so they either buy or short it causing the price to go up more.

The bubble at some point will be too large and pop. The greedy people holding this stock who more than doubled their money at this point will lose out on a lot of profits when that happens. Hell it fell 20% yesterday. There’s nothing holding this stock up but greed, hope, and the fear of missing out. Think Bitcoin when it was worth like $20K before it fell to $3K.

So when you say they borrow it, are they actually borrowing it ? I mean, do they enter an agreement to sell at a certain date or certain price? Or do you mean "borrow" in the sense that they have no intention to hold it for a long time, but haven't agreed to any official selling plan in the future?
 

winb83

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So when you say they borrow it, are they actually borrowing it ? I mean, do they enter an agreement to sell at a certain date or certain price? Or do you mean "borrow" in the sense that they have no intention to hold it for a long time, but haven't agreed to any official selling plan in the future?
You go to a broker and use somebody else's shares to both borrow and right away sell the stock. You have to buy the stock back to replace those borrowed shares. Yes that's an agreement you enter with the broker and you only do it because you think over the length of the period you borrowed at that the share price will fall so you can buy back in at a lower price and profit.

It's like buying low and selling high but it happens in reverse. You sell high then buy low to replace what you sold.
 

CoryMack

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You borrow somebody else’s stock then immediately sell it. In theory the stock price falls and later you use part of the proceeds of the borrowed stock you sold to buy it back at the lower price. You keep the difference between what the borrowed stock sold at and the lower price you bought back in at. If the stock price rises then you have to buy back in at a higher price and you lose money.

Everyone knows this stock will drop in price. The problem is nobody really knows when. If you can figure out when then you can short it. This is a stock that’s selling for far more than it’s actually worth and as people see it rise they want in on the profits so they either buy or short it causing the price to go up more.

The bubble at some point will be too large and pop. The greedy people holding this stock who more than doubled their money at this point will lose out on a lot of profits when that happens. Hell it fell 20% yesterday. There’s nothing holding this stock up but greed, hope, and the fear of missing out. Think Bitcoin when it was worth like $20K before it fell to $3K.

Thank you man. Makes it a little clearer.
 
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