{"id":19741,"date":"2023-06-28T00:41:33","date_gmt":"2023-06-28T00:41:33","guid":{"rendered":"https:\/\/woodriverweekly.com\/?p=19741"},"modified":"2023-06-27T20:42:31","modified_gmt":"2023-06-27T20:42:31","slug":"putting-on-the-short","status":"publish","type":"post","link":"https:\/\/woodriverweekly.com\/index.php\/2023\/06\/28\/putting-on-the-short\/","title":{"rendered":"PUTTING ON THE SHORT"},"content":{"rendered":"

By Kristin Hovencamp, CPWA\u00ae<\/em><\/p>\n

\"\"
Kristin Hovencamp, CPWA\u00ae is an Investment Executive and Director of Business Development with HAZLETT WEALTH MANAGEMENT, LLC.<\/figcaption><\/figure>\n

Traditionally, short selling, or shorting stock, was once thought to be a trading strategy employed only by professional traders and hedge fund managers. Today, retail traders have increased their short stock interest. Short selling as a tactic is used to profit from a decline in a security\u2019s price and is the opposite of buying a long position and betting that the price will go up in value.<\/p>\n

A short sale occurs when a seller borrows shares of a security from a broker-dealer. The borrowed shares are immediately sold to buyers willing to pay the market price. A short seller is anticipating they will be able to repurchase and replace the borrowed shares in the future at a lower cost. The borrowed shares must be returned to the lender by a specified date. The difference between the stock sell price and the buyback price is the short seller\u2019s profit or loss.<\/p>\n

Seller beware. The risk of loss on a short sell is unlimited because, in theory, a stock\u2019s price can rise as high as the market is willing to pay, whereas, when you buy a security, the most you can lose is the cost of your investment.<\/p>\n

Short sellers must place trades using a margin account. Margin allows you to buy and sell securities by borrowing money from a broker-dealer. Because you are investing with borrowed money, you are using leverage, increasing the potential profit or loss of your investment.<\/p>\n

Capitalizing on falling asset prices has gained momentum amongst retail traders and is no longer a strategy limited to professional short sellers. To persevere in the high-stakes arena of short selling, one must have a bearish view of the market or a particular security. That said, \u201cYou don\u2019t see any Fifth Avenue mansions built by bears,\u201d James R. Keene.<\/p>\n

Kristin Hovencamp, CPWA\u00ae is an Investment Executive and Director of Business Development with HAZLETT WEALTH MANAGEMENT, LLC, which is independent of Raymond James and is not a registered broker\/dealer. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities offered through Raymond James Financial Services, Inc., member FINRA\/SIPC. 675 Sun Valley Road, Suite J1 + J2 Ketchum, Idaho 83340 208.726.0605.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

By Kristin Hovencamp, CPWA\u00ae Traditionally, short selling, or shorting stock, was once thought to be a trading strategy employed only by professional traders and hedge fund managers. Today, retail traders have increased their short stock interest. Short selling as a tactic is used to profit from a decline in a security\u2019s price and is the […]<\/p>\n","protected":false},"author":1,"featured_media":15233,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","_pvb_checkbox_block_on_post":false,"footnotes":""},"categories":[2,16],"tags":[],"class_list":{"0":"post-19741","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-commentary","8":"category-finance"},"_links":{"self":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/19741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/comments?post=19741"}],"version-history":[{"count":1,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/19741\/revisions"}],"predecessor-version":[{"id":19742,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/19741\/revisions\/19742"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media\/15233"}],"wp:attachment":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media?parent=19741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/categories?post=19741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/tags?post=19741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}