Understanding shorting sell and CXR Hey guys,
I'm a pretty new retail investor and just wanted to clarify on short selling because it has been mentioned so many times on the board.
I think I understand the general concept of short selling but please correct if wrong. It is when someone borrows shares bought by someone else to sell at a lower price. The short seller makes money when the price goes down.
I'm just trying to understand from a fundamental level, how does short selling put pressure into making a stock price go down? For example, a stock price usually goes up when there is greater bids then ask, greater demand so more buying and willingness of people to pay higher stock price. How does it work for short selling and how does it influence the stock to go down?
Full disclosure on my end, I bought CXR shares at $60 last year and then it was a massive drop. Currently holding at a pretty big loss, I'm just trying to figure out what is the best thing to do right now:
A) Hold and wait till it reaches $60 or higher then sell
B) Buy at current price or lower to average down
C) Sell now and take a loss
1) What do you recommend and reason?
2) What are the bullish and bearish outlook on CXR? Such as what growth potential, return vs risks, debts
3) Please feel free to contribue any other information you may find helpful, thanks.
Dan