Quote:
Originally Posted by howard555
The Op asked about shorting stocks.
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Actually, the OP asked: "What does "Shorting" or "Go Short mean?"
"
Short" just means selling in many or most cases. Going "
Long" means you are buying.
Just leaving a position can mean "going short." When I lighten up on something
that I have held for a while I refer to it as "going short." I may still have some
of that "something" - just less of it. I may want to buy it back later when prices
go down. Sometimes I'm wrong, sometimes I'm right.
I went "short" on gold and oil in August. That was smart and stupid at the same time.
Quote:
Originally Posted by Randomdude
Shorting should be made illegal.
It is one of a few things that has completely destroyed trading.
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Shorting has been around longer than you have been alive. So have options.
People are always in favor of banning stuff they don't understand.
A good example is genetic engineering.
Shorts stopped the internet bubble. They also stopped the housing bubble.
Shorts help support the market by closing out their positions.
Shorts, however, should only be allowed if they properly borrow stock that someone else owns.
"Naked" shorting should not be allowed.
Shorting stock that doesn't exist is like issuing stock and only the company has the right to do that.
Allowing shorting is a good thing for the market. When the time comes that they are banned,
that will be the time that the market is utterly and completely controlled by the government.
Good luck with that.