Entry 1
During last week a new strategy that I tried to use in my stock trading is short selling. I've realized it is a lot easier to recognize when a stock will plummet than when a stock will rise. The first stock that I decided to short sell was Finish Line Inc. I had read about the Finish Line stock decreasing in value significantly but I had seen the stock itself start to rise. When I saw that it had reached it's daily high I short sold it for 2000 shares. Quickly I had realized that just because a stock had done poorly in the past does not mean once it reaches it's daily high it's bound to fall again. I lost around $1000 in the stock. Several days later I had learned about limit and stop loss orders. I wanted to see how it worked and whether or not it could become a valuable strategy for me. I wanted to get rid of the Finish Line stock as soon as possible but I didn't want to lose any money in it seeing as I still had a hunch it might drop. I set a limit order at the original price of the stock to test the strategy and see if I could make back the money I had lost as well as get rid of the fluctuating stock.
