'When this happens I sell the stock short that is, technically. In other words, I sell more stock than I actually hold.'
About this quote
- What does it mean?
- The speaker describes short selling as a technique where they sell more shares than they own.
- In plain terms
- I sell stocks I do not own to profit from a price drop.
- What can you take from it?
- Short selling allows profit from declining prices by selling borrowed shares.
Where it applies
Putting it to work
Questions to consider
- When is it appropriate to short a stock?
- How do you manage risk in short selling?
Another view
Short selling carries unlimited risk if the stock price rises instead of falls.
More from Jesse Lauriston Livermore
'When I buy stocks for a rise I like to pay top prices and when I sell I must sell low or not at all.'
Permalink to quote #9 'Experience has proved to me that real money made in speculating has been in commitments in a stock or commodity showing a profit right from the start.'
Permalink to quote #11 'When your security is acting right, you can safely add to your line from then forward!'
Permalink to quote #8
Related quotes
'Experience has proved to me that real money made in speculating has been in commitments in a stock or commodity showing a profit right from the start.'
Jesse Lauriston LivermoreJesse Lauriston Livermore quote #11 'If my stock does not act as I anticipated, I immediately determine that the time is not yet ripe - so I close out my commitment.'
Jesse Lauriston LivermoreJesse Lauriston Livermore quote #13 The stock of course, in light of that news up 5 or 6 points this week, ... But we still like the stock a lot, and on any pullback we'd be a buyer.
Jack BakerJack Baker quote #14