Risk Management, Assault, Mr Matt Roberts discussed on Power Trading Radio

Automatic TRANSCRIPT

Think is at a very high price today and he wished the had some in your portfolio so you could sell it well the brokers is willing to lend you those stocks so that you could go ahead and it today you sell it yourself and their stocks served another one of the customer stocks you sell it on the market on these change the money goes into your account and now europe the only condition to this is that you're gonna pay them brokerage these but you're also going to return those stocks at some point out as a sign commissioned by the way you'd pay if you were bind yeah and so you wait for the price to fall in the fact you are right man you know a price at an alltime high but the price dropped and because people were selling it off your you do something called bite called by two covered by so you got a by that say number of shares back and then those scheers automatically go back to the brokerage and they put it back in their immaturity but it's not as complicated as it sounds on by the way that whole process by buying takes one second yanni press the cell short but mats what's going on in the background the easiest way to think of shorting at least in my opinion is your betting the price goes down you know when we buy something are we doubting the price goes out here and if it does now we lose money when was shorting rebutting the price goes down and now we lose money if the price goes up and that's why we have to use proper risk management on both a by an assault right yes uh and you make more money on these short cells than he do typically on a long position because price falls much faster than it does exactly because fear is a more powerful motivator than greed exactly what folks were just about completely out of time on behalf of my to produce was today mr matt roberts and.

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