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M4tooshLoL OP t1_j24ocrc wrote

Reply to comment by weiner_forest in Can someone explain to me how calls & puts work? by M4tooshLoL

So I should only buy puts/calls in amount I can afford, got it. Also, what is exactly the difference between puts and short position?

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weiner_forest t1_j24syjl wrote

Puts is a short position.

And yea, you should only buy puts on what you can afford. You will almost certainly lose money on puts/calls starting out, and you will probably fail to ever beat a market index fund if you do it long enough. It's a casino. Treat it like blackjack.

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M4tooshLoL OP t1_j24trbk wrote

Basically I am interested in puts/ shorting stock,as I regularly buy stock but I always have to wait for it to go down and then buy the "dip". So I wanted to also try to make money when the market is going down.

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weiner_forest t1_j24vmel wrote

Put options is your best bet then, but like I said before, you're unlikely to beat the market. It's a casino, and the house tends to win.

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M4tooshLoL OP t1_j24w1jo wrote

If its risky, whats other option for me to make money on market during recession?

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weiner_forest t1_j26gfmw wrote

buy low and hold. look at any long term sp500 chart. whens the best time to buy? in the middle of a recession.

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