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[-] LincolnsDogFido@lemmy.zip 10 points 2 days ago

Can someone explain to me why it would be a bad idea to short the fuck out of this stock? I'd like to make money and be a principled human at the same time, but I'm not well versed in the stock market.

[-] bstix@feddit.dk 16 points 1 day ago

It's a bad idea because shorting requires a settlement date.

You can't keep a short the same way that you keep an investment. You need to predict at what time it is worth less than it is now.

It's also a bad idea, because you can lose more than you invest. If you buy a stock, you can only lose the purchase price of that stock. If you short it, there's no upper limit to how much you can lose if the stock keeps rising. The people holding the stocks will do anything to keep inflating the stock price, even if it's evident to everyone that it is a bubble. As long as they can keep throwing money at it, they can keep the price going up.

I'm not well versed in the stock market.

This is a good reason not to short.

principled human

This is an even better reason not to short.

[-] LincolnsDogFido@lemmy.zip 3 points 1 day ago

Thanks for the reply. This is the first time someone has explained stock options so simply to me.

[-] Corkyskog@sh.itjust.works 2 points 1 day ago

Its the explanation of the old adeage "the market can remain irrational longer than you can remain solvent"

[-] kureta@lemmy.ml 1 points 1 day ago

beautiful words. I have never heard it before.

[-] AliasAKA@lemmy.world 79 points 2 days ago

The market can remain irrational longer than you can remain solvent.

[-] LodeMike@lemmy.today 6 points 2 days ago

You're a dog you can't legally invest

[-] badgermurphy@lemmy.world 8 points 2 days ago

Check the rules! I once heard there was no rule that a dog couldn't be in the NBA.

[-] athatet@lemmy.zip 1 points 2 days ago

I think dogs should have the right to vote.

[-] Corkyskog@sh.itjust.works 1 points 1 day ago

Considering how much dogs seem to hate Trump, agreed.

[-] HailSeitan@lemmy.world 2 points 2 days ago

If you have 5 to 10 years, and can afford to lose the money, it sounds like a great idea

[-] bstix@feddit.dk 2 points 1 day ago

afford to lose the money

Yeah that's the thing about shorting. Nobody knows how much that is. It's potentially infinite.

this post was submitted on 21 May 2026
206 points (98.6% liked)

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