Buy Long is taking a position in a stock with the intent that Linda Belcher nurse shirt stock will move up due to improvement in the company’s growth and fundamentals. OR for buy long trading a stock for profit for a few day to few weeks. Stocks tend to have “runs” aka several days or movement upward, followed my a minor “retracement” selling for profit. Sell for profit. This is a simple sell order. It is not selling short. Sell orders are when an investor decides to sell a long term held stock, ETF or other stock market derivative. Also, swing traders and other short-term traders sell for profits. Sell for profits is not selling short as you own the stock you are selling. You can’t sell short a stock you own. Sell Short Order is an order that takes a contrarian position in a stock. In other words, the Short Seller is selling the stock short as he has no ownership in the stock. This is ALWAYS a short-term trade not a long term. Short Sellers do not own the stock. They must borrow the stock to sell short.
Therefore the lender always requires margin lending to earn interest income on the sell short shares that the lender lends to the borrower the short seller. The Short Seller has NO ownership in that stock. The Short seller is merely borrowing stock for a brief period of time. Selling Short is not common. It has become a focus for many retail groups and gurus, however, it requires specialized trading skills, techniques and plenty of education regarding downward trends and the rules of selling short. Most of the market groups are in the market for LONG TERM INVESTING aka many years of holding a stock as the company grows and becomes bigger and more prosperous thus making more investors want to be shareholders aka owners. The goal of Selling Short is to hold a stock in a run down for a few days at most. These are not stocks held for weeks or months. These stocks sold short are held for milliseconds, minutes, or days at the most.