1 thought on “How much can I make when using 50 times the leverage to be short?”
Betty
Affected by the epidemic, the US stocks had repeatedly disconnected during this time.
But when most people lose money, a few people also make a lot of money by shorting. The hedge fund manager Bill Akman invested $ 27 million and became $ 2.6 billion in a few weeks. The people feel that short -time is the shortcut of wealth overnight. The reality is often different from imagination. Illow shorting is more like a shortcut to returning to poverty overnight. Because even if you judge correctly, it is also difficult to make money.
The Ruixing coffee as an example. The investors have long discovered that Ruixing's data is not right and concluded that there is a problem with the company. Then they did empty Rui Xing. As a result, a few of them made money, most of them lost a lot of money. The most investors I heard, because I was short, I lost $ 20 million. Is an investor, through research and development that Ruixing model is a business that can continue to obtain customers by subsidies, and may never be profitable. This calculation with the information he captured and the store interviewed by the store found that the difference between the single quantity announced with Ruixing was very large, "about 35%difference". The investor firmly believed in his judgment, and it turned out that he did judge the right. This he invested a lot of funds and used ten times the leverage. From August to November 2019, he directly or indirectly held more than 50%of Ruixing in the market to do short -term power and part of the empty tickets. He also wrote the data and inferences into the email and sent it anonymously to the institutional fund that holds the shares of Ruixing TOP10. I imaginative, it should be Ruixing's problem exposure, the stock price plummeted, the investor made a lot of money. In reality, Ruixing continued to issue and succeeded in fundraising in Hong Kong. Mort Rui Xing's 65 -day stock price rose 255%. The investors who see the truth have stopped losses in time and have no liabilities. but also suffered heavy losses and lost millions of dollars. In another 87 days later, Ruixing only exposed the problem, and the stock price fell 93%. but the investor has already been out.
. There is also an investor who has been shorting for many years. Profeed after Rui Xing went on the market, he built the position twice to short, and eventually couldn't hold the stock price increase to close the position and ended it with a loss of $ 20 million. The explanation: Do not take it easy, the market keeps irrational time that can exceed your time to keep bankrupt. So people who make money by shorting stocks in reality are far less than those who make money by making multiple stocks. The problem of shorting is that it stands on the opposite side of time. Its risk is unlimited and the income is limited. Hate you really have a pair of wisdom, and you can understand the future value of the company. You found a good company with valuables. As long as you buy long -term holding, you can make money. as, even if the company's short -term stock price declines for some reason, it will rise in the long run. You can make money as long as you hold it. But if you find a company with no value and even financial fraud. Was you want to make a lot of money by shorting, even if your judgment is correct, you may still pay a lot of money. The words again, it is because it is too difficult to be short, so once it succeeds, it will make a lot of money. Bill Akman turned $ 27 million into $ 2.6 billion in a few weeks. This is not because it is easy to make money when it is short, but because it is difficult to make money when it is short. Because of the proportional proportion of risks and benefits, it is so difficult to short. If the income is average after success, then no one will choose to short. The movement of the counter.
For most people, don't think about making money by shorting. but if you are very interested in making money short, whoever persuades will not listen. INT must remember a few principles: The first control risk. The choice of purchasing timing and short amount of amounts, control risks as much as possible in the range that can withstand. is not a word of victory. don't think about how much money you make, first think about the worst result. If all is lost, the maximum loss can be tolerated. Ifinable, don't participate. The second is the plan to exit. mo is more time friends. The longer the time, the more beneficial. But the short time is, the longer the time, the more variables. So must be planned to exit to avoid accidents and make yourself losing money. So even if you feel that you can make money, you need to see it if you see it. The third is how to do after planning to make money. If before the transaction, you are not clear about how you handle the income, and it will easily become greedy. It is like the gambler can easily put all the money on the gambling table, and one day will be lost all day. Is before obtaining the income, think about how to use it. Otherwise, money will come quickly and go fast. It earned 2.6 billion Bill Akman with 27 million to make money, and did not continue to short. Instead, the money I earned was used to buy companies such as Lowes, Hilton, and Berkshire Hathaway. What is a master, this is the master. So I still like Buffett's investment philosophy. In a valuable stock, as long as the company's performance does not change, it will always be held, it is best to hold a lifetime. It you may feel that you make money slowly, but the interesting thing about life is that sometimes slow is fast.
Affected by the epidemic, the US stocks had repeatedly disconnected during this time.
But when most people lose money, a few people also make a lot of money by shorting.
The hedge fund manager Bill Akman invested $ 27 million and became $ 2.6 billion in a few weeks.
The people feel that short -time is the shortcut of wealth overnight.
The reality is often different from imagination.
Illow shorting is more like a shortcut to returning to poverty overnight.
Because even if you judge correctly, it is also difficult to make money.
The Ruixing coffee as an example.
The investors have long discovered that Ruixing's data is not right and concluded that there is a problem with the company.
Then they did empty Rui Xing. As a result, a few of them made money, most of them lost a lot of money.
The most investors I heard, because I was short, I lost $ 20 million.
Is an investor, through research and development that Ruixing model is a business that can continue to obtain customers by subsidies, and may never be profitable.
This calculation with the information he captured and the store interviewed by the store found that the difference between the single quantity announced with Ruixing was very large, "about 35%difference".
The investor firmly believed in his judgment, and it turned out that he did judge the right.
This he invested a lot of funds and used ten times the leverage. From August to November 2019, he directly or indirectly held more than 50%of Ruixing in the market to do short -term power and part of the empty tickets.
He also wrote the data and inferences into the email and sent it anonymously to the institutional fund that holds the shares of Ruixing TOP10.
I imaginative, it should be Ruixing's problem exposure, the stock price plummeted, the investor made a lot of money.
In reality, Ruixing continued to issue and succeeded in fundraising in Hong Kong.
Mort Rui Xing's 65 -day stock price rose 255%.
The investors who see the truth have stopped losses in time and have no liabilities.
but also suffered heavy losses and lost millions of dollars.
In another 87 days later, Ruixing only exposed the problem, and the stock price fell 93%.
but the investor has already been out.
. There is also an investor who has been shorting for many years.
Profeed after Rui Xing went on the market, he built the position twice to short, and eventually couldn't hold the stock price increase to close the position and ended it with a loss of $ 20 million.
The explanation: Do not take it easy, the market keeps irrational time that can exceed your time to keep bankrupt.
So people who make money by shorting stocks in reality are far less than those who make money by making multiple stocks.
The problem of shorting is that it stands on the opposite side of time. Its risk is unlimited and the income is limited.
Hate you really have a pair of wisdom, and you can understand the future value of the company.
You found a good company with valuables. As long as you buy long -term holding, you can make money.
as, even if the company's short -term stock price declines for some reason, it will rise in the long run. You can make money as long as you hold it.
But if you find a company with no value and even financial fraud.
Was you want to make a lot of money by shorting, even if your judgment is correct, you may still pay a lot of money.
The words again, it is because it is too difficult to be short, so once it succeeds, it will make a lot of money.
Bill Akman turned $ 27 million into $ 2.6 billion in a few weeks.
This is not because it is easy to make money when it is short, but because it is difficult to make money when it is short.
Because of the proportional proportion of risks and benefits, it is so difficult to short. If the income is average after success, then no one will choose to short.
The movement of the counter.
For most people, don't think about making money by shorting.
but if you are very interested in making money short, whoever persuades will not listen.
INT must remember a few principles:
The first control risk.
The choice of purchasing timing and short amount of amounts, control risks as much as possible in the range that can withstand.
is not a word of victory.
don't think about how much money you make, first think about the worst result.
If all is lost, the maximum loss can be tolerated.
Ifinable, don't participate.
The second is the plan to exit.
mo is more time friends. The longer the time, the more beneficial.
But the short time is, the longer the time, the more variables.
So must be planned to exit to avoid accidents and make yourself losing money.
So even if you feel that you can make money, you need to see it if you see it.
The third is how to do after planning to make money.
If before the transaction, you are not clear about how you handle the income, and it will easily become greedy.
It is like the gambler can easily put all the money on the gambling table, and one day will be lost all day.
Is before obtaining the income, think about how to use it. Otherwise, money will come quickly and go fast.
It earned 2.6 billion Bill Akman with 27 million to make money, and did not continue to short.
Instead, the money I earned was used to buy companies such as Lowes, Hilton, and Berkshire Hathaway.
What is a master, this is the master.
So I still like Buffett's investment philosophy.
In a valuable stock, as long as the company's performance does not change, it will always be held, it is best to hold a lifetime.
It you may feel that you make money slowly, but the interesting thing about life is that sometimes slow is fast.