Bonz195714 Jan 2011 01:42
I closed my first short the other day for a profit, but ended up losing that today when I opened another short in the afternoon- that one got stopped out and sold. I will be staying away for the time being, the charts have swung in your favour so you may see a rise in the short term, but my personal opinion is that you would be better off putting your money elsewhere for a long term hold...Funny you mention Sky, as me and my flatmate recently had massive problems with them! He has been a customer for years, bought a new house and when he moved in it took them about 3 months to get the broadband up and running! Customer care was appalling and apparently "the computer system" was to blame!...but point taken about the bad reviews!
Anyway...back on topic! I was around £5per pence short, so I would make/lose £5 for every penny the share price rose/fell. A good example is my second trade- I went £5 pp short at 825, with a 'stop loss' at 835, meaning that when the share price rose above 835 it automatically stopped my short (ie bought back 5 shares) I therefore lost 10x£5 = £50. Hope that makes sense!
To be honest I don;t think I'll be shorting any more shares for a while, far too many good opportunities to buy at the moment! I think my next short will be on the FTSE when it starts to head down and I believe it will head down to the 4000 mark sometime later this year when they stop printing money and realise the fundamentals...
If you are in it for the very long term then maybe it is a good bet- to be honest I have no idea and I mostly invest in much more speculative shares for short-medium term returns. My long term share is FML, a mining company which has massive prospects for the future...If I was going to put my money anywhere for the very long term I would put it into gold. Anyway, I wish you the best of luck & get back to me if you have any questions!
Sign In
Follow the stocks
