When you sell a stock short, you sell first. Therefore, you are selling shares you don't have - a promise to give someone shares sometime in the future. In the real world, this is tied to a guarantee it will be within the next x months (say 2, which would push it outside the game end window). At some time in that period, you need to buy back the shares and deliver them to your client. This is physically accomplished by borrowing shares from a bank or other large equity holder, who will charge you commission to borrow their shares for shorting purposes.

In selling short, you are betting that the stock will go down. If I sell 30 shares of a company short at $100 a share, I need to return the shares at some point. If in 3 weeks the company is trading at $50 a share, then I buy back 30 shares at $50 each, return the shares, and pocket the $1500 in profit. If the price goes up, however, you'll be turning a loss.

Ya, but then when we will always have to choose a day when to buy it. We could easily just buy shares from a company that is on an obvious decline then desert the action until it reaches the desires ammount we want and then say to buy them.

Wouldn't that be... a bit unbalanced? or do you meant that you'll just make us auto buy the shares after a week in game time or so.
Might just be easier to do it like irl

Day trade. Long.
500x PepsiCo Inc (PEP)

Example company? Shorting works exactly like buying long, except you are doing it in reverse. It's not unbalanced at all - if you can predict with such certainty that a company's stock will decline, then you deserve to reap the rewards by shorting it*.

*There is one real world exception which I won't worry about in this game. When a company is obviously tanking, such as GM was in May, it becomes physically impossible to short because there are no shares to borrow (since everyone else is already shorting it).

Why would I provide the example company so everyone else goes short on it?
Specially when I have all my money invested.


I want to sell all the shares I have in apple as soon as I can.

Come on Campbell's Soup!! Rise! I say Rise!!

Should've invested in Ford....

*Dead Last...*

lol ford is so going down too so I wouldn't do it, the whole automobiles industry is.

Construction is doing pretty bad irl too, I don't know why I invested in it.

All I can say in serious advice is choose a stock and sit on it.. don't lose all your money to the greedy stockbroker in commission.

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Why would I provide the example company so everyone else goes short on it?

By all means, if you can so presciently foresee a company's decline, take a few thousand of real dollars and go short it. It works the way I described.

I know, If only I lived in the u.s.
and had a "few thousand of real dollars"

All money back in CD.

Time to sell without looking at the stocks. Blind Money. Gogogo.

Is that a sell order?

*rubs greedy hands together*

It seems it was a good day for most people

Corbo, open up some PM space if you want your invoice.

That's right. I climbed four ranks.

Lovely, I thought kbh was going down because of this morning but I just checked the closing right now and it's amazingly good.

I'm gonna be shorting some of the money I get back from apple the rest on a CD I'll make a move tomorrow or wed. I'll just camp kbh for now.

BTW, PM space cleared.

Post has been edited 1 time(s), last time on Jul 14 2009, 2:48 pm by Corbo.

It was a great day on Wall Street, better for some than for others of course. Corbo, you still planning on doing stuff? I sent you your invoice for the stock sale from Monday.

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The fact that the bank profits from this is irrelevant >_>

I know, I got it. Unfortunately I didn't have much time to control the market, I was going to try selling short as for now I won't do anything. Even if KBH is just rising and it seems like a good choice to invest more, I find it too risky to buy more actions due to it being investigated, it could drop any day.

Hahaha, I'm still winning

But not by much..

I'll catch up today don't worry

All monies in CD.
Actually, screw that. I'm too lazy to continue making smart stock choices. (Not that constantly putting money into CD is a "smart" choice.)

I want to wait until all of my money currently in CD automatically withdrawn, then I want to use that money to pay off all debt owed to the bank. The remainder of the money will be put into a new CD.