[Boards: 3 / a / aco / adv / an / asp / b / bant / biz / c / can / cgl / ck / cm / co / cock / d / diy / e / fa / fap / fit / fitlit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mlpol / mo / mtv / mu / n / news / o / out / outsoc / p / po / pol / qa / qst / r / r9k / s / s4s / sci / soc / sp / spa / t / tg / toy / trash / trv / tv / u / v / vg / vint / vip / vp / vr / w / wg / wsg / wsr / x / y ] [Search | Free Show | Home]

Could Someone please explain to me why buying and holding works

This is a blue board which means that it's for everybody (Safe For Work content only). If you see any adult content, please report it.

Thread replies: 16
Thread images: 2

File: 0008.jpg (224KB, 640x454px) Image search: [Google]
0008.jpg
224KB, 640x454px
Could Someone please explain to me why buying and holding works better than shorting garbage?
I have an eismanian sense that most companies are WAY overvalued so my go to action is to short things i find ludicrously expensive... One RH allows shorting in the future, will the game be up?
hy does it pay to go long over the long term?
>>
>>1365670
>One RH allows shorting in the future
not gonna happen
>>
Directly shorting the market requires timing to be profitable. Buying and holding rides out successive waves of inflation.
>>
>>1365670
It used to. Not necessarily any more.
US is getting communist, so that country is fucked in the long run. I'd say chin, but that thing is a fucking bubble waiting to burst.
India has serious corruption.
You could go long on east/central Africa maybe? Maybe South America, or Switzerland.
>>
>>1365670

Man, they managed to make that movie goddamn awful. Especially that fucking retard Carrell.
>>
>>1365783
Really? I really enjoyed it. Carrell was pretty annoying at first but half way through he got a lot better. I think it was just his character.
>>
>>1365783
I loved it desu
>>
>>1365783
Just saw it last week and liked it, Carrell was pretty good and I'm not even a fan of his.
>>
>>1365670
You're never shorting your own shares, hence you pay interest/ premiums or other made up fees. Those fees eat up into your potential profit if you sold too early, kinda like reverse dividends.
Furthermore, shorting irrational markets (eg. pennystocks, cryptos, everything(?)) might become unprofitable really fast: price goes x2, you lose everything; whereas going long, often times you can try to hold on to your shares, hoping for better times.
>>
File: zarya-overwatch-.jpg (167KB, 1159x747px) Image search: [Google]
zarya-overwatch-.jpg
167KB, 1159x747px
Shorting involves greater risk than a buy and hold strategy. Not only is there an unlimited downside risk to shorting, but there are also recall risk, execution risk, minimum margin requirements and you have to pay dividends. There are also fees linked to shorting, usually very low 0.1-0.2% for liquid companies, but could also go up to 100% for less liquid companies.
>>
u know what happenes if u short and ur wrong PJJR ?
[21:26:02] <+BrothaSol> u lose everything
[21:26:04] <+BrothaSol> if u buy and hold
[21:26:10] <+BrothaSol> u always have a peice of the company
[21:26:14] <+BrothaSol> unless it goes bankrupt
[21:26:35] <+BrothaSol> and shorts dont do dividends
[21:26:45] <+BrothaSol> and
[21:26:49] <+BrothaSol> just cuz a company is shit
[21:26:55] <+BrothaSol> doesn't mean its share price will fall
[21:27:09] <+BrothaSol> its market sentiment
[21:27:14] <+BrothaSol> unless the company gets real bad
[21:27:35] <+BrothaSol> when i first got into this game
[21:27:37] <+BrothaSol> yea
[21:27:42] <+BrothaSol> i was all gung ho about shorting
[21:27:43] <+BrothaSol> but
[21:27:48] <+BrothaSol> it can really turn into a nightmare
[21:27:55] <+BrothaSol> its not investing
>>
>>1366072
l> im not even cool on shorting with my own money
[21:29:16] <+BrothaSol> if i think that um
[21:29:22] <+BrothaSol> the markets at its alltime peak
[21:29:23] <+STONECOLDd-MAC> got myself $1.71
[21:29:28] <+BrothaSol> i'd rather find value still
>>
>>1366072
>>1366075
thank you brothasol
>>
>>1365783
nah, movie was quite entertaining
>>
>>1365704
not this market though...

it's on the top of bubble, just waiting for a pin prick to burst it...
>>
>>1366493
So get short, leveraged ETFs if you really think that. Pretty much a gamble tho.
Thread posts: 16
Thread images: 2


[Boards: 3 / a / aco / adv / an / asp / b / bant / biz / c / can / cgl / ck / cm / co / cock / d / diy / e / fa / fap / fit / fitlit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mlpol / mo / mtv / mu / n / news / o / out / outsoc / p / po / pol / qa / qst / r / r9k / s / s4s / sci / soc / sp / spa / t / tg / toy / trash / trv / tv / u / v / vg / vint / vip / vp / vr / w / wg / wsg / wsr / x / y] [Search | Top | Home]

I'm aware that Imgur.com will stop allowing adult images since 15th of May. I'm taking actions to backup as much data as possible.
Read more on this topic here - https://archived.moe/talk/thread/1694/


If you need a post removed click on it's [Report] button and follow the instruction.
DMCA Content Takedown via dmca.com
All images are hosted on imgur.com.
If you like this website please support us by donating with Bitcoins at 16mKtbZiwW52BLkibtCr8jUg2KVUMTxVQ5
All trademarks and copyrights on this page are owned by their respective parties.
Images uploaded are the responsibility of the Poster. Comments are owned by the Poster.
This is a 4chan archive - all of the content originated from that site.
This means that RandomArchive shows their content, archived.
If you need information for a Poster - contact them.