A few years ago, Ford Motor Company stock was sky-high. It never seemed to go down for long, and many people were buying in with unrealistically high expectations of great things from the company in the future.
Those hopes were dashed as Wall Street got wind of the near-future decline in the country’s automobile industry. The stock fell, and some people took advantage of the situation and shorted the stock before selling out to get out of the stock market. Since then, Ford Motor Company stock has steadily dropped.
Nevertheless, it is still possible to purchase the stock at a discount. Even those who are scared off by the recent stock price decline can find Ford Motor Company stock at a reasonable price.
Of course, price is not everything. You should expect that the stock price will drop and hold, just as any other stock might do. You should not go in expecting to make large profits, but neither should you expect the stock price to rise.
You can be right on the money if you realize that any stock that falls more than 20% in one day has no hope of being bought by anyone but speculators. Therefore, you need to invest very cautiously, and you also need to keep your expectations low.
It is very easy to sell your Ford Motor Company stock when you decide that it is time to sell it. In fact, there are a number of sites which allow you to short the stock so that you are in a position to cash in on the falling prices.
Shorting the stock, of course, is not the same as buying it. You should only be selling short position when you have a good chance of getting your money back. The stock price is likely to drop, and you will want to short it to recoup your investment.
This is where many traders begin their trading in stocks. They short the stock when it goes into a downward spiral, and it seems that the stock will plummet forever without ever rising again.
If they sell it immediately, however, they miss out on a great potential profit. You have to sell your stock before the fall, but you can make a profit from it once it reaches a point at which it will not fall any further.
This point is called a ‘bearish’ price, and it is when you would consider the stock ‘out of favor’ and more likely to fall further. You should be quick about selling your stock at this point, as you will not be able to get your money back at that point. You may even make a profit in shorting the stock, and you should then get in to buy it up again after the fall is over.
As long as you are prepared to sell your stock as soon as the trend turns downward, you can be assured of making a profit every time it drops. This is a tremendous time to invest in stocks, as long as you are willing to take risks and not stay too close to the money you have put into the stock.
You should always be a buyer and a seller when it comes to stocks, especially when you are trading Ford Motor Company stock. Once you begin to invest in stocks, you should never leave them and never get in to buy them unless you are sure that you will be able to get out of them in a short period of time.