General Stock Investment Strategies/how did they make money?


I love the movie Trading Places, at the end of the movie the main characters have information about a crop report. They go to Wall Street and start to sell orange juice stock at 142.00 per share. When the price falls to 29.00 they buy it all back. How did they make money?


I did not see the movie but its sounds like they shorted the stock (In this, they more likely shorted futures contracts. The basic concept of making money while shorting is to sell high and buy low.  If you sell at a high price and buy at a low price, you make money.)  Shorting stocks or futures contracts is very risky. You can lose a lot of money. Normally we make money in the market buying low and selling high.  

I hope this helps.

Michael Weiss

General Stock Investment Strategies

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Michael Weiss, CFA


I can answer most questions about stock investment strategies, especially those related to value and growth


I am the owner of Series 7 Exam Tutor , a financial tutoring business that provides personalized tutoring for the Series 7 Exam, the Series 6 Exam ,the Series 65 Exam, the Series 66 Exam, the Series 63 Exam and the Series 24 Exam . I also offer tutoring for finance courses. For additional information, please visit, Finance Exam Tutor. Prior to launching Series 7 Exam Tutor, I worked in investments for 20 years with the majority of this time focused on investment analysis and portfolio management. I have worked for large companies such as Merrill Lynch and Evergreen Investments and have also worked for smaller firms as well. Throughout my career, I have sought to mentor younger colleagues whenever possible, especially those enrolled in the CFA program. I completed the CFA program in 2002 after passing all three exams on the first try. I also passed the Series 7 Exam with a score of 94%. For additional information about me, you can visit the links below:

CFA Institute and CFA Society of Philadelphia


M.B.A. in Finance & Investments from the Zicklin School of Business at Baruch College and a B.A. in Finance & Economics from the City University of New York Baccalaureate Program.

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