-Positive on the market
-You can also be “long” on a particular stock: If you are long Nike, you’re expecting it to go up
-Negative on the market
-You can also be “short” on a particular stock: If you are short Nike, you’re expecting it to go down
-Selling with the intention to buy the shares back at a lower price
Benefits of using “Long”/”Short” vs. “Buy”/”Sell”:
-If you have 1,000 shares of Nike and you tell someone you sold 500 shares, they could assume you think Nike is going to go down even though you are still positive 500 shares.
-If you think a certain stock will go down and you decide to sell all 1,000 shares and later purchase 300 shares, and you tell someone that you bought the 300 shares, it is not clear that you are still negative 700 shares. They may not understand that you think Nike will go down.
-“Long” and “short” remove the ambiguity associated with the terms “buy” and “sell.”
#stockmarket #tradingstocks #longtermtrading #shorttermtrading
Posted at: https://tradersfly.com/blog/understanding-long-short-terms-in-trading/
? GET MY FREEBIES
? SUBMIT A VOICE QUESTION
? START HERE: FOR NEW TRADERS
? START HERE: OPTION TRADERS
? MY CHARTING TOOLS + BROKERS
? MY COMPUTER EQUIPMENT
? GET THE NEWSLETTER
? SEE OUR MEMBERSHIP PLANS
? STOCK TRADING COURSES
? STOCK TRADING BOOKS:
? GET PRIVATE COACHING
? SOCIAL MEDIA:
? SUBSCRIBE TO OUR YOUTUBE CHANNEL
? MY YOUTUBE CHANNELS:
? ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.
Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!