Short Selling Or Long Position, Which Is Better

Podcast Duration: 05:45
नमस्कार मित्रो। एंजेल वन के इस podcast में आपका स्वागत है ।

Stock market ka two animals se purana naata hai: the bull, and the bear. Market mein agar stock prices chad rahe hai, toh isse bull run kehte hai. No doubt ki ye naam ek bull ki energy aur forward-spirit dekh kar rakha gaya hai. Jab generally stocks opposite direction mein jaate hai - that is, jab stock prices girte hai aur firms ka market capitalization kam hota hai - toh usse bear run kaha jaata ha. Reality mein toh ek bear 40 mile prati gante ki raftaar se bhaag sakta hai. Par stock market mythology mein bear ke heavy frame ki wajah se market slowdown ko bear run kehte hai.

The beauty of financial markets is that you can make money in a bull run as well as in a bear run. The only time when it's impossible to make money on the stock market is when the stock prices are constant. But the stock prices are never constant, and so you can always make money on the stock market.

To make money in the bull market, you can take a long position. Long position lene ke peeche ek simple strategy hoti hai. The idea is - and this is clear from the name itself - that if you hold on to your position for long enough, then you can make money on the stock. Let’s understand this with the help of an example.

Suppose you take a long position in the stock of a Cement manufacturing company. The Indian government is trying to make India a 5 trillion dollar economy by 2024 - and infrastructural growth will play a big role in this plan. As new roads, stations, housing projects, factories and airports are built, the demand for cement will keep going up. Therefore, the stock price of the cement manufacturing company will possibly see impressive gains.

After a few years, you can cash out your long position, and take home quite a big profit. Duniya ke sabse bade investor hai Warren Duffet ne apne latest interview mein kahan hai ki jab aap stock market mein invest karte hai, toh aapko ye nahi sochna hai ki aapne kuch shares khareede. Aapko ye sochna hai ki aapne ek business mein ownership liya hai. Jab tak uss business ke fundamentals strong hai, tab tak aapka investment safe hai. Your long position will ride out the temporary ups and downs of the market and give you lasting returns.

Stock market mein returns kabhi guaranteed nahi hote. Angel One wants to give all its listeners a balanced take on every subject. Therefore, we must talk about your possible losses when you take a long position. Maan lijiye ki aapne 5000 rupees invest karke ek company mein long position liya. Ab agar ye company bankrupt bhi ho jaati hai, aur iska stock price 0 tak gir jaata hai, tab bhi aap ke losses limited rahenge. At most, you will lose 5000 rupees.

Par agar aap koii stock short sell karte hai, toh aapke potential losses unlimited ho sakte hai. Confused? Chaliye isse bhi cement manufacturing company ke hi example se samajte hai

Maan lijiye ki India ka growth slow hota hai, aur instrastructural projects stall ho jaate hai. Cement ka demand decrease hota hai, cement manufacturing companies ke stock prices gir jaate hai. Aapko lagta hai ki stocks ab tak bottom out nahi hue hai - future mein aur bhi girne waale hai. Toh aap ek investor se ek cement manufacutring company ke stocks borrow karte hai. Aap market price par ye stocks ko bechte hai. Maan lijiye ki aapko 1 stock bechne ka 2 hazaar rupay milte hai. 1 hafte baad aapki prediction sahi ho jaati hai - the stock price falls even further to 1500 rupees. Ab aap 1500 mein wahi stock buy back karke 1st investor ko return kar sakte hai. Aapne isme trade mein per stock par 500 ka profit kamaya.

However, agar aapki prediction galat nikalti, toh? Suppose ki government ke kuch steps ki wajah se the infrastructure sector turns around and starts growing at fast rates. Jiss company ka stock 2000 per trade ho raha tha, ussi company ka stock ab 6000 ho gaya hai. Kyunki aapne pehle investor se stock borrow kiya, aapko return toh karna hai. Now you will be forced to buy back the stock at the increased market price of 6000. Therefore you will make a loss of 4000 on this trade. Since there is no upper limit to how much a company’s stock price can increase, there is no upper limit on your potential losses.

Isleye short selling zyada risky maani jaati hai. Short selling sirf unn experienced traders ke liye hai jo lambe time ke liye stocks par nazar rakh sake.

चलिए, एंजेल वन की तरफ से आपको आज के अलविदा. ये podcast शेयर करना ना भूलियेगा - याद रखियेगा की ज्ञान बाटने से बढ़ता है । और फिर अंत में तोह financial markets एक ऐसी university है जिसमे कोई professor नहीं, सब students ही है ।