| Online stock trading can be exciting. For most | | | | unethical to bet on falling share prices. It is against |
| speculators the fascination lies in the opportunity to | | | | the common hope and believe that people should |
| make much money in a short time period. While most | | | | invest in stocks so that the companies get money, |
| of these stock traders bet on rising stock prices, | | | | make money and all share holders prosper. Going |
| there are others who make money when the stock | | | | short means to sabotage this idea. Hoping that the |
| crashes. | | | | stock price goes down is therefore the same thing |
| When you start out with stock trading then you will | | | | as hoping that the company will fail. |
| soon come across the terms going long or short in a | | | | However, stocks have always went up and own all |
| stock. Going long means you buy a stock in the hope | | | | times. It is part of the game. I do not believe that it |
| the share price will go up to make a profit. This is the | | | | is unethical to go short. It is not possible to bankrupt |
| most common stock play in the market. | | | | a company when everybody goes short. There is |
| Going short in a stock is the opposite. It means that | | | | always a real and true value of stock shares, no |
| you sell stocks that you do not have yet in the hope | | | | matter how many people go long an short. If you go |
| to buy them back later to a lower price. Buying the | | | | short then you have to buy the shares back later |
| stocks later is also called covering the stock. | | | | anyway. You provide liquidity and volume to the |
| When you go short for the first time it feels a bit | | | | stock market as a shorter. |
| strange. You sell something you do not have. | | | | Whatever your believe is, going short is very |
| However, it is just a push of a button to go long or | | | | common and every online broker today offers this |
| short. It is all electronic. The problem is not that it is | | | | possibility to you. As long the broker has shares |
| difficult to do, there are other rules for playing shorts. | | | | available, which you can find out through your trading |
| First of all there are many people who believe it is | | | | platform, you can go short anytime. |