Published On: Mon, Aug 20th, 2018

Playing The Field: A Backup Short Plan

Businesses must stand up on their own two feet. There’s simply no expert in the world that would advise you to hitch your trailer to someone else. It’s all well and good to do trade deals, signs contractual agreements and take onboard investors and partners. However true independence must never ever be lost if you intend to make your business a success that will be in your hands for the long term. Having backup plans for when things do go down south, is or should be one of your main priorities. As soon as you have enough capital that you can spare from your future plans with the business regarding expansions and obligations, you should set it aside and assume a short position. A short position is when you are betting on something to fail and in the hope that it does, you will sell at the right time and make a healthy profit.

 

 

It’s a dud

 

A simple way to understand what a short position is by thinking of it this way; you sell high, buy low. Buying a stock of a company that looks like it is the next best thing, in the hopes that it will turn out to be anything but, selling while it’s popular and then buying back when it fails is one way to play the field. You’re already in the field of business, so you can tell what procedures and or merits have been met. A company that looks like it has made a rival product to a corporate behemoth, and offers it for a fraction of the price to consumers, sounds extremely lucrative. Studying the actions of the company, and with the professional consultation of a respected business analyst, you can determine whether or not they seem doomed to fail. In other words, it’s a dud, and it’s only a matter of time before that business’ stock fails. In this kind of instance, with the advice of your professional counsel, buy the stock early, wait for it to climax and then sell it. Presumably, you’re correct and the stock plummets, then you can buy it back later for a cheaper price; making a profit along the way.

 


 

Money isn’t stable

One the largest daily trading sectors is currency pairings. It’s known as the foreign exchange, whereby two currencies are paired. You bet on which currency is going to devalue and which will rise. Find out more about forex and you could in fact become involved in a very simple but bullish market. Currencies fall and rise all the time, so if you’re a business that wants to be more financially independent, training yourself in this field could be extremely useful. Some might say you’re going against what some say in the market but don’t be put off by seeming like the odd one out. Many people in the financial and trade world can sense when a currency is weakening and looks like it will fall in value. This could be used to your business advantage.

 

It’s a dog eat dog world out there, so you shouldn’t hesitate to bet on another business or trade failing. It’s a natural cycle of shedding the weak and flawed ideas, so the prudent and better thought out can survive and thrive.

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