You may hear the word “Swip-to-Flip” a lot, but are there good stocks you can buy into (especially stocks with upside potential) and that can be flipped to the upside quickly? What are the best stocks for portfolio diversification?
Swap-to-Flip – A term used by investment experts to describe an aggressive way to buy stocks during the day, when most investors won’t be actively looking for them. It often means purchasing the stocks on a margin stand, or “staggered buy” (when the broker sells the stock at the highest price it can sell it at). The upside-to-down sell (or upside to put) allows for the lowest possible price to be paid for the stock and the highest possible price to be bought at. Some funds do not even include the upside-to-down position in your balance or will do a “no change” strategy, which is similar to a long position, or an “invert” strategy, where you buy a stock and sell it at an equally low point in time to cover any potential gains.
One of the most common uses for this approach is to buy a stock and sell it back on the open market at a large profit or loss. When you sell, the open market price for the stock will be lower, and if the stock is still available on the market when you close out, you will recoup all of your gains during the day.
If you don’t own the stock, but are trying to sell off the entire portfolio and have no idea how big an impact this may have, a lot of this will help, but it is also possible that you will only be able to make a small profit or win a short, and not a good one, if you go this way. The downside to this approach is that a lot of your investment will be locked up in a position that is not likely to ever change hands. So be careful what decisions you make, and consider how many stocks you own.
To learn more about this type of strategy click here.
If you have ever bought stocks and sold them off the open market, it may seem like a fool’s errand to the short term trader, but these strategies can be extremely effective. As well as providing additional risk-free exposure to a market that is highly volatile, these strategies can also be very profitable when invested into an active market. This is not a good thing to put the brakes on just because you’re thinking
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