So how come stock brokers never tell their clients to sell stocks short?
Instead they just tell them to buy and than sit there and watch their clients lose all of their money?
Public Comments
1. idk
2. it's illegal if they reveal ahead of time and sell stock before it plumets
3. Often it's because the broker will lose money if you sell.
Read this:
http://www.saveyournestegg.com/scam.html
And, if your broker is calling himself a 'financial advisor' (95% of financial advisors are brokers/salesmen, then you should be in a well diversified portfolio that you understand and should not be freaking out about.
4. Selling short is an incredibly risky move; you have a limited potential for gain and an unlimited potential for loss. (The opposite of buy & hold).
It is not appropriate for non-professionals. Buying put options or placing limit orders is a reasonable choice for clients who understand the market well enough to limit downside risk "professionally."
5. professionals and experienced traders short stocks all the time, in good markets and bad. The problem with retail brokers is that a novice speculator can easily lose a fortune selling short ... when you buy a stock the worst that can happen is you lose your investment. when you short a stock, there is theoretically no limit to how much you can lose. Most retail clients get screwed enough by following broker's advice, urging them to short would make things worse and invite regulatory action. .... and retail brokers have historically been very reluctant to even rate a stock as a 'sell', much less a 'short'. When analysts publically advocate shorting a stock, companies will stop talking to them and conventional sources of information dry up.
6. the first 3 answers above are from idiots
the reason brokers never tell their clients to sell short
is because they are dipsticks
they don't know their heads from their ***
7. Most prudent stock brokers would advise their clients to short when the markets are against their clients' holding positions especially when the markets' fundamentals are not in their favor in a longer term. For the old school thought, people are talking about investing but nowadays due to tremendous market forces interplay thus information become very speculatively . Brokers are human beings where they are also temperamental in their behaviors in believing and holding on the facts that nothing has changed, and that tomorrow the market would turn in their favor. For the market to fall is fast, to rise is can be a long wait. Brokers really need to fundamentally and technically updated in their endeavors and most importantly professional in their undertakings towards their client's investments mainly because there really not many profitable investments around to look at especially where the practices of governance are still superficially implemented by the relevant agencies.
Practice prudency and practical in your approach.