Does it mean that I got to "sell" the stock 1st then "buy" when the price drop?
Yeap. Its called short selling. You can also use buy put options which go up in price when the underlying stock goes down. Read about it first befor you do it.
How to profit when stock price is falling?
November 29, 2008 By 10 Comments
Yes – limit your losses – then buy back in when they start to rebound.
References :
I reccommend selling, you should see a stock advisor though.
References :
Yeap. Its called short selling. You can also use buy put options which go up in price when the underlying stock goes down. Read about it first befor you do it.
References :
You are referring to short selling. This requires a fairly sophisticated understanding of markets and stocks.
The risk with short selling is that there is no limit to the amount of money you can lose. It is possible to lose 2 or 3 times more than your original investment. For this reason, most brokers require an account to be approved for margin before short selling is allowed.
References :
dont sell ur current stocks.buy the stocks which has occured loss.
that will gain u profit
References :
It all depends at what price you bought your stock. If it is below for what you bought it for and the company normally has a good track record hold on to it. You would benefit more by buying new stock now and ride it out. The stock market is for the long run. If you have good diversity in stocks you still should come out OK overall.
References :
Shorting (stocks) is one way. It's a dangerous game for the novice. Buying "proshares ultra short" ETF's is also another way. Also dangerous for the novice (especially because it's leveraged at 2X your investment).
I suggest you really "learn" this stuff before doing. Not having the right stops and "whipsaw" will kill you!
BTW: Buying stocks on the way down is considered an amateur move. When do you catch a falling knife?
References :
short selling.
but be very careful
References :
sell stocks you don't own (selling short) when the stock is going to fall
when that happens you buy stock back to cover your short sell.
you gain the price difference of the fall.
just the mirror image of buying low and selling high
References :
if your bet is that the direction for a stock is heading down there are 3 options. Selling short, buy Put Options or sell Call Options.
Selling short is likely going to be done in your margin account. You are selling borrowed shares at today's market price and then later buying them at a future market price – hopefully much lower. The big risk is that if the market goes up your loss potential is unlimited because you might have to buy those shares at an unimagineably high price.
Selling Call options will probably require additional approval from your broker. This is an income strategy with a limited upside compared the risk of unlimited loss if the stock goes UP. You collect a premium up front but agree to deliver 100 shares for each contract, which you will have to do if the stock goes up.
The final idea is Buying Put options. First off.. your loss is limited to the premium you pay up front. With the Put option strategy you are essentially doing the same thing as selling short except you get to leverage many more shares while you don't have to worry about additional losses if the stock goes up.
References :