You don’t have to be a high-level investor to know the basic rule of investing in the stock market: buy low and sell high. But while the rule sounds simple, it’s not always easy or even possible, like when a stock is trading at an all-time high.
If you’re an inexperienced investor, you’ll kick yourself at this point and wonder why you didn’t load up on shares back when they were trading for a fraction of their current price. But you’re not out of luck. Savvy investors have another tool for profiting from high security prices. The key is understanding the difference between buying (long) and selling (short) stocks.