learning options , shorting etc

[roadtool]

Im failing to learn , understand the practise of shorting and options , as well as puts and calls . I have traded long and have used proshares etf's in todays bearish markets , but I want to learn more , but Im having a difficult time making sense of the practise and I refuse to invest when i have no idea what Im doing ....... is there anywhere as a reference to learn , without taking so much time or space for a beginner in this matter , TIA to any that care to respond . Tim

[wallstreetsedge]

i teach courses live online... www.wallstreetsedge.com

but if you want an unbiased answer... you can also try www.optionetics.com they have everything from books to seminars

[netwrangler]

Im failing to learn , understand the practise of shorting and options , as well as puts and calls . I have traded long and have used proshares etf's in todays bearish markets , but I want to learn more , but Im having a difficult time making sense of the practise and I refuse to invest when i have no idea what Im doing ....... is there anywhere as a reference to learn , without taking so much time or space for a beginner in this matter , TIA to any that care to respond . Tim
If you want to trade options, you need to put in the time and effort to learn about them. Not sure what you mean by "without taking so much time or space for a beginner in this matter."
- If you are trying to save space on the forum, then fine. That's a good objective.
- If you are trying to learn options without expending much time and effort, my advice is, "Don't bother. It won't work."

Last December, Albert0373 posted a great list of resources for learning about options.
Here is a link to that post. (http://www.onlinetradersforum.com/showpost.php?p=69721&postcount=2)
Please post questions you may have as a result of that reading. That Q&A process will help the lurkers as well as you.

Happy reading. :fisheye:

[lifewideopen]

Would someone explain exactly what shorting a stock is and how it is executed? I am using Ameritrade if anyone uses them in this forum. Thanks.

[aiki14]

I do not use Ameritrade so I can't help you with specifics of the platform. Shorting a stock is simply a bet on the stock going down. You are borrowing a bunch of shares and giving your brokerage the current price in cash as collateral. At some later date you pay back the shares and get your collateral back. If the shares are lower in price at the time you pay them back, you keep the difference. The reason you need margin is if the shares go up in price you need to add to your collateral, and your margin account allows for you to do this conveniently and with pre-established credit.
Hope this is helpful.

[ZaNoob]

I prefer to go long instead of shorting because I find it safer. When you go long the most you will ever lose is the total amount of your investment. But if you go short you can lose your shirt and more. Low priced stocks look like great bargains to short, like the financials right now. But it is a big gamble because the company you shorted might suddenly become a takeover target and values could double.

Currently I'm in a short position and I don't think I'll do it again for a very long time.

Also practice trading on paper before real trading. If you don't know what you're doing now then you won't know why you made a mistake and so you can't learn from it. When you know what you're doing and make a mistake then you know what you did wrong and can fix it or avoid it next time. Good luck and always ask. Lots of gurus and pros here. Sadly I'm not one of them but if you want to throw money away then ask me for stock picks.

[lifewideopen]

Thanks both of you. I don't think I have the option to short with my brokerage account.

More homework for me to do.... Thanks again

[roadtool]

Noob , Im very aware of investing long , and also I have my way of playing the financials now and profiting well thanx much , Im just seeking the insight of shorting and the practising of using puts and calls , and what the term is investing out of an IRA short ,after the ride up .