Short selling guide

Discussion in 'Fred's House of Pancakes' started by bwilson4web, Mar 27, 2024.

Page 2 of 2
  1. bwilson4web

    bwilson4web BMW i3 and Model 3

    Joined:
    Nov 25, 2005
    28,156
    15,934
    0
    Location:
    Huntsville AL
    Vehicle:
    2018 Tesla Model 3
    Model:
    Prime Plus
    The squid makes sense:
    My understanding is converting to cash requires selling stocks 'the competition' holds. In the meanwhile, where does the initial SPAC stock sales cash go?

    I am not a lawyer or have had any training, but I get the impression:
    • SPAC sponsors have to pay the expenses of the lawyers and bankers.
    • Stock sale revenue is held until the SPAC merger completes with two years.
      • If the merger fails, the investors get what remains.
    "Truth Social" be told, I'm not motivated to research this further. Perhaps some of the DJT stock buyers are and might let us know. I'm only interested in 'short selling' this stock but the 'fee' is too large.

    Bob Wilson
     
    #21 bwilson4web, Mar 30, 2024
  2. ETC(SS)

    ETC(SS) The OTHER One Percenter.....

    Joined:
    Oct 28, 2010
    8,026
    6,841
    0
    Location:
    Redneck Riviera (Gulf South)
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    Blind Squirrels find acorns too....

    I DO have sense enough NOT to play in that particular street.
    Gambling houses seem to be a better bet.

    A proud Hoosier, replanted in the deep South I also know the dirty side of pari-mutuel betting.
    (I'm no fan of PITA, but THANK GOD they at least are pretty much putting a stop to dog racing!)
     
    #22 ETC(SS), Mar 30, 2024
  3. fuzzy1

    fuzzy1 Senior Member

    Joined:
    Feb 26, 2009
    17,558
    10,332
    90
    Location:
    Western Washington
    Vehicle:
    Other Hybrid
    Model:
    N/A
    Compound market growth certainly is wonderful, isn't it?

    And much much better if one gets started at age 34, or 24, instead of 64. While highly unlikely for most people to maintain 40% over multiple decades -- just about any timeframe between 2009 and now is 'special' for having enjoyed a very long bull market, longer timeframes have always included more bear markets -- the extra years more than make up.

    Young readers, take note, don't wait to get started. And with long time frames, riskier derivatives are not needed, the basic rising tide of the broad market can pay off very well for almost all investors, without trying to 'beat the market'.
     
    #23 fuzzy1, Apr 1, 2024
  4. bwilson4web

    bwilson4web BMW i3 and Model 3

    Joined:
    Nov 25, 2005
    28,156
    15,934
    0
    Location:
    Huntsville AL
    Vehicle:
    2018 Tesla Model 3
    Model:
    Prime Plus
    Funny you mention this. I was 25 when I left the Marines and always signed up for employee stock plans. Then every time I left a company, sold it. This aways resulted in a profit and sometimes a multiple:

    Any company wise enough to hire me will do good. Any company that would let me go, is doomed.
    ​
    This worked with ComNet, GE, Boeing, and SAIC. Later, I made a variation:

    Any company I would like to work at, is a good investment. Sell stock as needed to meet expenses.​

    This worked well with APPL which covered house closing costs and TSLA for second wife. But I've had some losses:

    Diversified into gold mining stocks.​

    There may be a problem with REE whose technology I like but execution is curious. Also Cessna before the "land sharks" ate it up.

    Bob Wilson
     
    #24 bwilson4web, Apr 1, 2024
  5. fuzzy1

    fuzzy1 Senior Member

    Joined:
    Feb 26, 2009
    17,558
    10,332
    90
    Location:
    Western Washington
    Vehicle:
    Other Hybrid
    Model:
    N/A
    I would advise youngsters that most of those stock sale proceeds should be quickly put back into other market investments, and only a small portion spent on expenses between jobs. So that one stays well invested pretty much continuously from a young adult start all the way to retirement, not as many separate disconnected investment timespans that end up missing out on the long term compounding of growth. Over the past 50 years, the S&P 500 Index is up by a multiple of over 50X, so a novice investor doesn't even need any stock picking skill whatsoever to be very successful over time. Start by just buying a broad market index fund.

    Done with discipline continuously over a working career, the dollar results today will be far higher than shown a half dozen replies back.

    Virtually everyone has some 'learning experiences'. This is just part of the process to becoming successful over the longer term. Pick yourself up, get back in the game, and you'll get better over time.
     
    #25 fuzzy1, Apr 2, 2024
  6. Mr.Vanvandenburg

    Mr.Vanvandenburg Senior Member

    Joined:
    Mar 15, 2007
    1,310
    534
    0
    Vehicle:
    2020 Prius Prime
    Model:
    Limited
    I feel it’s the roaring twenties extended. Two million second homes then torn to the studs and rebuilt and it’s for a few weekends. With a new motorhome left in drive or behind just because they can.
     
    #26 Mr.Vanvandenburg, Apr 2, 2024
  7. ChapmanF

    ChapmanF Senior Member

    Joined:
    Mar 30, 2008
    25,979
    16,953
    0
    Location:
    Indiana, USA
    Vehicle:
    2010 Prius
    Model:
    IV
    #27 ChapmanF, Apr 18, 2024
  8. ChapmanF

    ChapmanF Senior Member

    Joined:
    Mar 30, 2008
    25,979
    16,953
    0
    Location:
    Indiana, USA
    Vehicle:
    2010 Prius
    Model:
    IV
    #28 ChapmanF, Apr 19, 2024
  9. John321

    John321 Senior Member

    Joined:
    Nov 16, 2018
    1,336
    1,333
    0
    Location:
    Kentucky
    Vehicle:
    2008 Prius
    Model:
    Two
    Best advice I ever heard on the short selling game was don't get involved
     
    #29 John321, Apr 19, 2024
(You must log in or sign up to post here.)
Page 2 of 2