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Calling Stock Traders...


SamosaChai

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Im planning to start. Pan card emina theesukovala usa lo

 

SSN number and money

 

Can we do day trading on h1

 

anyone can do if you have money and SSN #.

 

 

Disclaimer: There's no guarantee you'll make money :)

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babulu, pillalu... one serious advice, if you are new to stocks and donno much about (even though you know much) read this... 

 

Shorting a stock in layman terms:

 

Lets say AAPL stock undi at 100 dollars now... For some reason(logic less reason, just may be because of volume ratio, earnings update, can be anything), I am thinking that AAPL will fall today. so what I will do is I will "SELL SHORT" 100 AAPL shares at 100 dollars..

 

which means, though I don't have any stocks of apple, I am selling 100 stocks at that price...

 

100 Shares @ $100 = $10,000 (Because you sold, this is your money).. but remember you haven't still given the stocks to the trader, since you don't have them with you...)

 

So, there are 2 chances from now, the stock can either go up or down right.... lets see both the case first we will see down ( elagu manam losses antey vinamu kada so profits gurinchey vindam first).....

 

case 1:

 

after you sold short, in the next second, APPLE stock 10 dollars padipoindi anukondi... so now stock price is 90...

 

since you already sold stocks to someone through your trading company, you have to give them those stocks.... so you will buy (actually called "Buy to Cover") 100 Apple 

 

which means you buy those 100 Apple stocks that you sold already at  90 now...

 

so the math is  100 Shares @ $90 each = $9,000

 

So once you Buy to cover, automatically they are applied towards the short, because you owe them the stocks...

 

So now , if you look at your trading account, you sold for 10,000 and you bought for 9,000 which leaves you with $1,000 profit...

 

Looks easy kada... now lets go to case 2... ippudu easy ga anipinchindi chingipotundi ee step lo, so read carefully...

 

Case 2:

 

same again here, you already sold  100 APPLE Stocks @ $100 per each share, which is $10,000.

 

now, for some reason again, the calculations you did went wrong, and apple started going upwards...

 

now let's assume it went to $110 in a split second... (yes stocks can go like that, there is no limitation)...

 

now you have to give the stocks to the stock broker, so you have to buy them.... if you don't deliever the stocks, same day they will do a finance charge(don't exactly remember how much for scotttrade, but differs from company to company)...

 

so you have no choice, but to buy at 110 for 100 shares = $11,000..

 

which means you sold for 10,000 and bought for 11,000... which means -$1,000 in your account already...

 

Wait, not over, there's more man....

 

sometimes, stocks won't be available for some companies that you short....

 

in those cases, imagine if the rate keeps going, there is nothing you will do...

 

that's why they say losses in short selling are infinite...

 

so don't just buy or think about stocks because someone is making money... Warren Buffet is making billions out of the stock market, which doesn't mean I or you will also make or something.... you might earn one day, but you will lose for many days... if you are only looking for money making, stock market is not the place....

 

you have to wake up by 6AM CST, follow every single minute, and if you have work place pressures, please forget this step right now...

 

I don't want to be cursed by many people... I am saying this because, many people got interest of my posts about JNUG and JDST so I wrote all this....

 

I barely work at my work place, and do all other things... so chose wisely and take a step... Good Luck... 

 

cool loveindia cool man.... Brahmi_sshu-1.gif

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babulu, pillalu... one serious advice, if you are new to stocks and donno much about (even though you know much) read this... 

 

Shorting a stock in layman terms:

 

Lets say AAPL stock undi at 100 dollars now... For some reason(logic less reason, just may be because of volume ratio, earnings update, can be anything), I am thinking that AAPL will fall today. so what I will do is I will "SELL SHORT" 100 AAPL shares at 100 dollars..

 

which means, though I don't have any stocks of apple, I am selling 100 stocks at that price...

 

100 Shares @ $100 = $10,000 (Because you sold, this is your money).. but remember you haven't still given the stocks to the trader, since you don't have them with you...)

 

So, there are 2 chances from now, the stock can either go up or down right.... lets see both the case first we will see down ( elagu manam losses antey vinamu kada so profits gurinchey vindam first).....

 

case 1:

 

after you sold short, in the next second, APPLE stock 10 dollars padipoindi anukondi... so now stock price is 90...

 

since you already sold stocks to someone through your trading company, you have to give them those stocks.... so you will buy (actually called "Buy to Cover") 100 Apple 

 

which means you buy those 100 Apple stocks that you sold already at  90 now...

 

so the math is  100 Shares @ $90 each = $9,000

 

So once you Buy to cover, automatically they are applied towards the short, because you owe them the stocks...

 

So now , if you look at your trading account, you sold for 10,000 and you bought for 9,000 which leaves you with $1,000 profit...

 

Looks easy kada... now lets go to case 2... ippudu easy ga anipinchindi chingipotundi ee step lo, so read carefully...

 

Case 2:

 

same again here, you already sold  100 APPLE Stocks @ $100 per each share, which is $10,000.

 

now, for some reason again, the calculations you did went wrong, and apple started going upwards...

 

now let's assume it went to $110 in a split second... (yes stocks can go like that, there is no limitation)...

 

now you have to give the stocks to the stock broker, so you have to buy them.... if you don't deliever the stocks, same day they will do a finance charge(don't exactly remember how much for scotttrade, but differs from company to company)...

 

so you have no choice, but to buy at 110 for 100 shares = $11,000..

 

which means you sold for 10,000 and bought for 11,000... which means -$1,000 in your account already...

 

Wait, not over, there's more man....

 

sometimes, stocks won't be available for some companies that you short....

 

in those cases, imagine if the rate keeps going, there is nothing you will do...

 

that's why they say losses in short selling are infinite...

 

so don't just buy or think about stocks because someone is making money... Warren Buffet is making billions out of the stock market, which doesn't mean I or you will also make or something.... you might earn one day, but you will lose for many days... if you are only looking for money making, stock market is not the place....

 

you have to wake up by 6AM CST, follow every single minute, and if you have work place pressures, please forget this step right now...

 

I don't want to be cursed by many people... I am saying this because, many people got interest of my posts about JNUG and JDST so I wrote all this....

 

I barely work at my work place, and do all other things... so chose wisely and take a step... Good Luck... 

 

cool loveindia cool man.... Brahmi_sshu-1.gif

 

(*,):?

 

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