Investment Advisors in Albany, NY Give Investment Advice on Short Selling Stocks
andydlgwm
2012-08-02
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http://dlgwealthmanagement.com/our-services=?investmentadvisorsalbanyny
DLG Wealth Management, a wealth management company in Albany NY, discusses Short Selling stocks. DLG Wealth Management offers portfolio management in Albany, IRA/401K planning in Albany and more.
Managing Director of DLG Wealth Management, Andy Guzzetti offers insight into investment options such as Short Selling stocks. "It is imperative that all investors should have a portion of their portfolio in investments that make money when equities go down. This type of investing is called "short selling stocks."
Short selling is betting against a stock, making money if the stock goes down in value. This is an advanced trading strategy with many unique risks and pitfalls. You are not really betting against the company, as much as you are betting against the value put on the company. There are special requirements that need to be done to "short stocks."
1. You need to borrow the stock. You have to call a broker and ask to borrow the stock. Some stocks are harder to borrow than others.
2. You sell the borrowed stock to open the position. You now have a short position as opposed to a long position. Your goal is to buy your short position back at a lower price. Your account will be "marked to market" which means, because you are on margin, if the position goes against you (stock price goes up) you may get to a point that your brokerage firm will require you to put up more equity (money or stock).
3. When you close out your position, if the stock has gone down in value, you will make money (buy it back at lower price). If the stock price has gone up, you will lose money because you sold the stock at a lower price.
In today's volatile market, it is beneficial to be able to make money on the short side. See an investment advisor to get you started in the right direction. For more information on retirement planning, portfolio management or for other financial advice, speak with an investment advisor at DLG Wealth Management today, located in Albany, Saratoga or Utica NY. www.dlgwealthmanagement.com.
http://dlgwealthmanagement.com/our-services=?investmentadvisorsalbanyny
DLG Wealth Management, a wealth management company in Albany NY, discusses Short Selling stocks. DLG Wealth Management offers portfolio management in Albany, IRA/401K planning in Albany and more.
Managing Director of DLG Wealth Management, Andy Guzzetti offers insight into investment options such as Short Selling stocks. "It is imperative that all investors should have a portion of their portfolio in investments that make money when equities go down. This type of investing is called "short selling stocks."
Short selling is betting against a stock, making money if the stock goes down in value. This is an advanced trading strategy with many unique risks and pitfalls. You are not really betting against the company, as much as you are betting against the value put on the company. There are special requirements that need to be done to "short stocks."
1. You need to borrow the stock. You have to call a broker and ask to borrow the stock. Some stocks are harder to borrow than others.
2. You sell the borrowed stock to open the position. You now have a short position as opposed to a long position. Your goal is to buy your short position back at a lower price. Your account will be "marked to market" which means, because you are on margin, if the position goes against you (stock price goes up) you may get to a point that your brokerage firm will require you to put up more equity (money or stock).
3. When you close out your position, if the stock has gone down in value, you will make money (buy it back at lower price). If the stock price has gone up, you will lose money because you sold the stock at a lower price.
In today's volatile market, it is beneficial to be able to make money on the short side. See an investment advisor to get you started in the right direction. For more information on retirement planning, portfolio management or for other financial advice, speak with an investment advisor at DLG Wealth Management today, located in Albany, Saratoga or Utica NY. www.dlgwealthmanagement.com.
http://dlgwealthmanagement.com/our-services=?investmentadvisorsalbanyny
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