Wednesday, January 21, 2004

The Doc on Money: As an example of how a person can make money, I offer this gem: Shorting Stocks. This is a way to make money, that, if it profits, doesn't require a penny of your own cash.

Basically, it's a way to make money even when a market, or a company, is doing poorly.

Do I think it's a great way to invest? It's okay. The low cash risk is good, but I don't like the one-time-only profit factor. If I buy a stock, and it goes down tomorrow, it may go back up day after tomorrow. And, with the general trend of the market being what it is, a year or two from now it probably will have gone up. So I'm a big believer in long-term investing.

And you would probably need to have enough money invested with your broker that he feels secure you could cover any losses. But essentially, it's a way to make money without putting any of your own money on the table up front.

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