About Stocks: Naked Short Selling - Don't Try this at Home

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	from Ken Little Should you try to capitalize on the disruptions caused by Hurricane Gustav? The obvious strategy would be to bet on oil stocks, since a disruption in domestic supplies for any length of time means higher prices for gasoline and fuel oil. However, if you are interested in long-term gains, jumping at such opportunities is more closely aligned with gambling than investing. Which is fine as long as you understand that jumping at short-term trades is a high-risk strategy. Most people who try this lose.
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Naked Short Selling - Don't Try this at Home Naked short selling is not a good idea for most investors. In fact, there are more than a few in the financial markets who believe is should be banned or seriously reformed. If your image of naked short selling is a group of hedge fund managers sitting around in the nude, I would like to put that disturbing image out of your head.              More Topics Bonds Market News Evaluating Stocks for Investment Using Research Tools Investing Strategies FAQ on Stocks and Investing Introduction to Stocks Stock Investors should Avoid the Extremes Bet on the middle. Stock investors can help themselves if they count on extremes always swinging back to the middle. What this means is that, like politics, the extremes in market and economic cycles get most of the attention.   Understanding the PEG In my article on Price to Earnings Ratio or P/E , I noted that this number gave you an idea of what value the market place on a company's earnings. The P/E is the most popular way to compare the relative value of stocks based on earnings because you calculate it by taking the current price of the stock and divide it by the Earnings Per Share (EPS). This tells you whether a stock's price is high or low relative to its earnings.     Sponsored Links   Back to School Tips for Students, Parents and Teachers. Get the house, the school, and the kids ready for the new school year with shopping tips, recipe ideas, homework help and more!

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