When do i need to short a stock and place a stop order in a stock?
Do you also know a website were i can find graph about bullish and bearish stocks.
thanks
Thank you for using the Jiskha Homework Help Forum. Hopefully something here will help you:
1. http://www.trending123.com/patterns/index.html
2. http://www.incrediblecharts.com/technical/pnf_bull_bear_traps.htm
3. http://www.incrediblecharts.com/forums/messages/10/744387.html
There are lots of sites for charts but they all require registration and a fee.
To explain when to short a stock and place a stop order, let's start with short selling. Short selling is the practice of selling a stock that you don't own, hoping to buy it back at a lower price in the future and profit from the difference. Short selling is typically done when you believe that a stock's price will decrease.
Now, when considering short selling, you may want to place a stop order. A stop order is an order to buy or sell a stock once it reaches a specified price (the stop price). Placing a stop order helps protect your investment by automatically executing a buy or sell order when the stock reaches a certain price level, limiting your potential losses.
So, in short, you may need to short a stock and place a stop order in the following situation: when you believe a stock's price will decrease, you can short sell the stock and place a stop order to automatically exit your position if the stock's price reaches a specific level to limit potential losses.
Regarding your second question, finding graphs about bullish and bearish stocks can be done on various financial websites. One website that provides such information is Yahoo Finance (finance.yahoo.com). On this website, you can search for a specific stock and access its historical price chart, which can help you determine whether the stock has exhibited bullish or bearish trends in the past.
Remember, when making investment decisions, it's important to conduct thorough research and consider various factors before taking any action.