Contact Me

Please email me any questions, concerns or inquiries at reddysetgoblog@gmail.com

I will try my best to respond within 24 hours.

2 comments

  1. Hello. I am a new investor that has an Optionshouse account. I have watched several of your youtube videos and really enjoy them. I understand how to navigate through the Optionshouse program. My question is why does it allow you to sell stock when you havent even purchased any yet? its just confusing me and wondered if you could explain it to me. Thank you and i appreciate it

    • Hey Darren,

      Thanks for stopping by man. I think you’re referring to short selling, but i’m not entirely sure. In essence, selling a stock without owning any shares essentially opens what is called a ‘short’ position. A short position means that you are betting that the stock will decrease in price and you make money when it does decrease. I personally don’t short any stocks since there are a lot of risks. Since you lose money when a stock price goes up, your risk is uncapped and you can technically lose an unlimited amount of money if the stock price keeps going up. But, there are scenarios where shorting a stock can help hedge your existing long term positions during a bear market. If the entire market is declining and you don’t want to sell, you can essentially open a short position and make some money until the market recovers.

      Here’s a good article on it from TradeKing: https://www.tradeking.com/education/stocks/short-selling-explained

      Hope that helps!

      Thanks, Sam

Leave a Comment

Your email address will not be published. Required fields are marked *

*