[mvalente]

To make money with stocks you want to buy cheap/low and sell for more/higher. It doesnt have to be in that order.

If you expect a stock value to go down lower than X dollars, you commit to sell them stock at >X$ (without owning) and, when the time comes and your expectations (about the stock going down) become true, you buy for <X$ and sell the stock for >X$.

-- MV