Lux Investing

Is short selling less risky activity than long term investing?

I mean, I've got a bunch of shares and all of them have lost so much money from the crisis. I'm thinking, they're fluctuating so much, why don't I just start short selling them. I mean, eventually they will shoot back up, but right now, it seems much more likely that the economy will keep them down for some time.

Public Comments

1. It's a lot easier to make money shorting because it's harder for companies to keep making profits.
2. Short selling requiers more knowledge and skill than short term or long term investing. It's significantly more dangerous because the potential loss is... unlimited. (When you buy a stock the most you can lose is what you invested..... when you short a stock.... it can go up to any number... as it does you continue to lose money). Of the three types of investing.... long term investing is the "safest". That doesn't mean it's safe..... just safer than short term investing or shorting. BTW: mntndo can't be an experianced trader/investor. His answer reveals that he has little to no knowledge about this subject.
3. It would be better to purchase a put to hedge your loss. If you do not understand short selling - avoid at all costs. It is really for experienced traders.
4. no
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