Yesterday I sold Ford. It is now somebody else's problem. I first sold 750 shares at a 3.20% loss and then another 250 at a 3.75% loss. I took advantage of its higher price yesterday and unloaded.
But then an idea struck me. Why can't I make Ford's poor performance work for me? The stock market has many options for trading, not just buying and selling. What I decided to do was "Short Sell" Ford. What this means is I borrowed money from the broker by "selling" Ford at yesterday's price. Ideally, for this strategy to work, Ford would drop in price (and if you've been reading my other posts, you know it has been), and then I would "buy" or cover the loan by buying the stock back at a lower price. Currently, using this strategy, I'm making a 1.69% profit. As long as Ford keeps dropping, I'll continue to make money, until I decide to repay the loan.
In the meantime, with the money I was loaned by shorting Ford, I bought Adobe Systems, Inc. and Target. As of today, both are doing well.
In other news, the Electronic Entertainment Expo begins today. If you own gaming, entertainment, or electronic hardware stocks, the odds are your stocks are going to rise today. Sony announced their new PS3 system and Microsoft has announced the next generation of the Xbox. Any company that does business with these two, will likely see a jump in their expected returns and hence their stock price.
I'd love to hear from others in the stock market contest. Instructions for initiating a post can be found here.
Later today, I'll post the standings of the Cashtalk stockmarket contest. Keep checking back!
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