Aviator Mar -

Stock market is just like buying & selling anything else, with a much more transparent and easy process. Stocks ride up and down based on the motivation of buyers and sellers and the inherent value of a little bit of whatever Company is being traded.

Big swings like we have had in the last few days are the result of everyone reacting out of fear. Inversely - big run ups in price are motivated by greed - the result of everyone wanting a part of the action. When you see either extreme it is time to be very pragmatic and try to adjust your view to the end of the runway - makes for a better landing.

Short selling is borrowing a stock. Lets say I can't stand SKYW so I arrange to borrow some shares at $25 for a period of time. Those get sold off and I hope the stock goes down so when I have to replace the shares it only costs me $20 each. The $5 spread is my profit.

The airlines are great for day traders who can't get enough of the casino action. You can bet with and bet against the house by buying, or selling short.

For any serious investing - average your money month to month into a regular old index fund and just watch the result. I lost more than $10,000 in the most recent market swing. If I had invested a week ago I would be upset, but with 25 years of investing it is more of a curiousity. After all, some accounts I put $7,000 in 20 years ago are now over $35,000.

I am starting to shift more money offshore, but the lack of an effective legal system and political instability make some foreign investment REAL risky. For example you can buy a beachfront lot in the Philippines for $4,500. The down side is squatters might take it, or the Muslims might kill you for it. But if the Country ever pulls itself together you have a little bit of land headed towards stratospheric prices.