I have just started reading up on the stock market and just read over short selling, and it made me think.
Do people ever short sell and long buy the same share at the same time to protect them self until they are sure what there stock is doing?
eg. Say I thought XYZ share was going to go up in price, pure speculation looking for a short term profit. If I long buy that share and something happened in the next week or so and the share dropped I would be at a loss.
But if I protected myself buy short selling the share as well, in the following week when the price dropped I could close my long shares and hold on to the short shares.
Of course the profit wont be as high but theres that margin of safety.