What is Short-Covering?

Short covering is the corrective action for short selling. It is the reverse of short selling. A speculator makes a bet that the price of a particular scrip or share is likely to fall and short sells. The price may go against his or her expectations and may instead rise. In this situation he or she will now have to buy the shares immediately, to honour previously short sold (cover the sale) as well as minimise the loss - as if the buy decision is delayed the price may climb even higher increasing the loss. 

Short selling, short covering and so on are purely speculative activities and are NOT-AT-ALL considered as investing.

Please learn value investing at ‘Wealth Vidya’ and gradually but surely progress towardsfinancial freedom and become rich and wealthy over a long period of time.

What is the Best Frequency of SIP Investment Subscription?

The frequency with which one can make contributions to the ‘Systematic Investment Plan (SIP)’ depends on the frequency with which you receive your paycheque!

In India salaries are paid once a month. I hear that in the US wages are paid every week.

In whatever intervals you receive your regular income – weekly or fortnightly or monthly – you must first invest, maybe in the form of SIP and only thereafter start spending. ‘Invest First – Spend Next’ is the mantra for financial freedom and wealth creation.

In conclusion, in India, where salaries and wages are paid every month, monthly frequency is the best.