What exactly means: "sell short and hold those short positions"?

MNSL answered 9 months ago …

Sell short and hold strategy in not suitable for all investors.

Ofcourse we must sell some stocks and sectors now. In the same time some sectors and stocks should add to your portfolios in every weakness in the next 18 months to reap long term benefits.

Some times shorting market will drag market further and will have create panic situation in the market. Those who can not understand market fully will become panic and will sell holdings for enormous losses. For example some intelligent investors did not become panic in November 2008 and waited till the market recover and then they disposed sectors not going to do very well in the next 18 months and next 05 years.

Those who investors for the long run in the correct companies and sectors still can make profits even in this market.

I think current depressed market can make use in two ways.

By buying quality stocks, stocks in next rotating sectors, neglected stocks with less debt and demand for their products in the next 05 years in fire sales. These stocks will have bull trend in the first sector oriented bull market towards end of this year and next year.

By doing short term trading in every up and down. To do this we must have good knowledge about market trend in advance. For example some stocks could trade in range bound in the next 18 months globally. Once we identify these stocks we can get short term positions. Once they stabilize their long term trend it is better to keep till end of next bull market.

There will some trading opportunities in some gold stocks as well. These stocks buy and sell in the short run according to the market trend.