Making and Losing Money from Longing and Shorting »

Posted By Jordan 1 year, 2 months ago in Business & Finance

Prop it 1 Drop it

I pointed a friend of mine who works in finance — I’ll call him “Senor Gumbo” — to my earlier post in which I explained “longing” and “shorting” to see if I’d explained it properly. He said that I’d nailed it, but he also said that I should more clearly explain what happens if you bet the wrong way when longing or shorting.

At first I thought that I didn’t need to do that, since that should be obvious. After thinking about it some more, I was reminded of something my buddy George likes to say every now and again: “there’s power in stating the obvious”.

So now, via the magic of dry-erase markers and boards, I present: Winning and Losing When Longing and Shorting.