Meaning he could lose 25% of his hard earned HVAC money.
I scalped some shares yesterday, a process that can be a bit stressful. Scalping is when you sell your shares of your stock and hope for the price to drop so you can buy back more shares at a lower cost. The problem with this is that if you hold out too long the price could go up, like mine did this morning before the market opened when it jumped 13% when the premarket trading opened. So if I kept holding out with my scalping I would have to buy back now and lose 13% of my shares. My HVAC worker friend did the same thing yesterday but didn’t buy back like I did, and now he is burdened not only with his heating corp work but with deciding if he will buy back at a higher price. If he doesn’t buy back now and waits for a dip then he could be in a trap if the price continues to rise. Meaning he could lose 25% of his hard earned HVAC money. I’ve done that before and ended up losing about a third of my shares, but yesterday I bought back when it dropped a bit and scalped about 165 shares. If the climate controlled cars start selling then the price could hit $10 this year and those shares would be worth $1650, something my heating expert probably was wishing would happen with his shares too if he had bought back like when I did. You can’t get greedy with trading stocks but you also need to be patient, two things which I am learning about.