Use a limit order. That'll get you the price you want but there's the risk the price will move away and you won't get filled. It does suck waiting for orders to get filled....Somehow the market knows whenever I put an order in and decides to move in the direction I want to before I get a fill.
Investing in the Stock Market.
- Thread starter Contender
- Start date
Reyaj
Master Don Juan
http://www.youtube.com/watch?v=ZTt7IQB9rc0
Causing some controversy.
How do you feel about Cramer admitting he and others dupe the public?
Causing some controversy.
How do you feel about Cramer admitting he and others dupe the public?
Bible_Belt
Master Don Juan
Professional traders already know better than to listen to guys like Cramer. Like I said earlier in this thread, wait until his evening recommendation gaps up like mad the next day, and then sell it short right on the open.
Look at the stocks that gap up the most, usually on great news. They almost always trade down from the open. Dumb money buys on news, smart money sells to the dumb money. "The public" always gets duped. Don't be one of the herd.
Look at the stocks that gap up the most, usually on great news. They almost always trade down from the open. Dumb money buys on news, smart money sells to the dumb money. "The public" always gets duped. Don't be one of the herd.
Reyaj
Master Don Juan
Bible i know you are right about this because I overheard some traders talking about how they used to make a lot of money from Cramer selling short. Here is what I noticed in my observations on his recommendation.
When he comes on at like 6 EST and recommends a stock. The after hours trading makes the stock increase a little bit (usually around 1 - 2 percent)
When it opens the next day it is up higher than what it previously closed at. However as the day progresses towards the end the stock usually or often has gone down below its open.
So are you suggesting I buy the stock after hours and short it mid day when it goes down? Or are you suggesting I buy the stock at the open and short it by the end of the day?
One question I have about short selling (I have never done it) but how long can you last before you have to sell? Like lets say I buy something to sell short at 10am. Obviously I want the stock to go down but is there a time limit i have to do this in? Does it have to be sold by the end of the day? There must be some kind of time limit or else people would just wait until a stock goes down so that they don't lose money paying back the borrowed shares.
Thanks again!
When he comes on at like 6 EST and recommends a stock. The after hours trading makes the stock increase a little bit (usually around 1 - 2 percent)
When it opens the next day it is up higher than what it previously closed at. However as the day progresses towards the end the stock usually or often has gone down below its open.
So are you suggesting I buy the stock after hours and short it mid day when it goes down? Or are you suggesting I buy the stock at the open and short it by the end of the day?
One question I have about short selling (I have never done it) but how long can you last before you have to sell? Like lets say I buy something to sell short at 10am. Obviously I want the stock to go down but is there a time limit i have to do this in? Does it have to be sold by the end of the day? There must be some kind of time limit or else people would just wait until a stock goes down so that they don't lose money paying back the borrowed shares.
Thanks again!
spider_007
Master Don Juan
Jayer said:
This video is no longer available due to a copyright claim by TheStreet.com
Reyaj
Master Don Juan
it was there a week ago when I posted it lol
bump!
bump!
Bible_Belt
Master Don Juan
So are you suggesting I buy the stock after hours and short it mid day when it goes down? Or are you suggesting I buy the stock at the open and short it by the end of the day?
One question I have about short selling (I have never done it) but how long can you last before you have to sell? Like lets say I buy something to sell short at 10am. Obviously I want the stock to go down but is there a time limit i have to do this in? Does it have to be sold by the end of the day? There must be some kind of time limit or else people would just wait until a stock goes down so that they don't lose money paying back the borrowed shares.
Thanks again!
I have been away for a while.
I would suggest avoiding the pre and post market trading. It's amateur hour every hour. You also get less protection, as the rules are different when the exchanges are closed. If you make a keyboard error and get filled far away from the market, an exchange will break the trade, but you are stuck with whatever fill you get when the exchanges are closed.
Regarding the short sale, you open the position with a sell order. You don't have to "buy to sell short." You sell without having the shares, thus the "short" part. A short position may be held nearly indefinitely; there is no need to close it at the end of the day. When you get ready to close it, just buy the number of shares that you are short, and this will get you to flat, no open positions. There is no time limit; you may unwisely hold a short position as a stock goes up if you choose to do so (not smart). Eventually, you will start to get margin calls as the rising stock erodes your equity.
Real traders don't hold losing positions - that's the telltale sign of an amateur who will not be in this business very long. If you stick to your stop loss points, then short selling is not any riskier than going long.
One question I have about short selling (I have never done it) but how long can you last before you have to sell? Like lets say I buy something to sell short at 10am. Obviously I want the stock to go down but is there a time limit i have to do this in? Does it have to be sold by the end of the day? There must be some kind of time limit or else people would just wait until a stock goes down so that they don't lose money paying back the borrowed shares.
Thanks again!
I have been away for a while.
I would suggest avoiding the pre and post market trading. It's amateur hour every hour. You also get less protection, as the rules are different when the exchanges are closed. If you make a keyboard error and get filled far away from the market, an exchange will break the trade, but you are stuck with whatever fill you get when the exchanges are closed.
Regarding the short sale, you open the position with a sell order. You don't have to "buy to sell short." You sell without having the shares, thus the "short" part. A short position may be held nearly indefinitely; there is no need to close it at the end of the day. When you get ready to close it, just buy the number of shares that you are short, and this will get you to flat, no open positions. There is no time limit; you may unwisely hold a short position as a stock goes up if you choose to do so (not smart). Eventually, you will start to get margin calls as the rising stock erodes your equity.
Real traders don't hold losing positions - that's the telltale sign of an amateur who will not be in this business very long. If you stick to your stop loss points, then short selling is not any riskier than going long.
Reyaj
Master Don Juan
Thanks Bible.
I hate to keep asking stupid questions but what is a margin call? Does that mean if I have a margin account my broker will force me to buy back the stock?
I know with options a call is an option to buy so thats why Im not sure.
I hate to keep asking stupid questions but what is a margin call? Does that mean if I have a margin account my broker will force me to buy back the stock?
I know with options a call is an option to buy so thats why Im not sure.
Bible_Belt
Master Don Juan
My new computer is finally up and running.
A margin call means you have to send more money or close the position in order to raise your equity percentage. "Call" in this sense is more like you get a telephone call from your broker. When you buy on margin, you might be able to buy twice as many shares, but you absorb the loss on all of them. As the position goes against you, your equity percentage drops. As your equity percentage gets low, the firm's risk begins to increase. If you lose all of your money, it starts to be theirs on the line, so they make you put up more money or they close the position before you get past zero equity.
For example, if you have $50,000 at 2x margin, that will buy $100,000 worth of stock. If you bought 1000 shares of a $10 stock, you would reach zero equity when the stock dropped to $5/share. The margin call is designed to prevent this from happening.
Conventional wisdom says to never meet a margin call. Getting one is a big red flag that you messed up. It's better to close the position rather than send more good money into a bad investment.
A margin call means you have to send more money or close the position in order to raise your equity percentage. "Call" in this sense is more like you get a telephone call from your broker. When you buy on margin, you might be able to buy twice as many shares, but you absorb the loss on all of them. As the position goes against you, your equity percentage drops. As your equity percentage gets low, the firm's risk begins to increase. If you lose all of your money, it starts to be theirs on the line, so they make you put up more money or they close the position before you get past zero equity.
For example, if you have $50,000 at 2x margin, that will buy $100,000 worth of stock. If you bought 1000 shares of a $10 stock, you would reach zero equity when the stock dropped to $5/share. The margin call is designed to prevent this from happening.
Conventional wisdom says to never meet a margin call. Getting one is a big red flag that you messed up. It's better to close the position rather than send more good money into a bad investment.
Bible_Belt
Master Don Juan
http://www.sosuave.net/forum/showthread.php?t=103238&highlight=forex
I like trading better than investing. Investors analyze companies balance sheets and hold for years. Traders could care less about the company; they trade off charts and ride momentum. The biggest difference is that traders use 'stop losses,' meaning if they go into the red by a set amount, then they close the position. By contrast, if an investor buys a stock that then declines, they typically hold.
I like trading better than investing. Investors analyze companies balance sheets and hold for years. Traders could care less about the company; they trade off charts and ride momentum. The biggest difference is that traders use 'stop losses,' meaning if they go into the red by a set amount, then they close the position. By contrast, if an investor buys a stock that then declines, they typically hold.
Bible_Belt
Master Don Juan
If that software could pick stocks, they wouldn't be selling it.
Bible_Belt
Master Don Juan
Do you mean skills for trading? Remember, I am no investor.
There is a lot you can read, but like anything else, you learn best by doing.
Here is some reading:
http://www.hardrightedge.com/tw.htm
Traders who do well tend to keep control of their ego and emotions, learn from their mistakes, and adapt quickly when the market changes.
Today the dow dropped over 300 points. The same techniques that worked in a sideways range-bound market did not work today.
There is a lot you can read, but like anything else, you learn best by doing.
Here is some reading:
http://www.hardrightedge.com/tw.htm
Traders who do well tend to keep control of their ego and emotions, learn from their mistakes, and adapt quickly when the market changes.
Today the dow dropped over 300 points. The same techniques that worked in a sideways range-bound market did not work today.
Bible_Belt
Master Don Juan
Most of the turtles washed out after the book was written.
Even a "dumba**" like me knows that if a software program could pick stocks, it would be too valuable to sell. Why would they be in the software business if they could print money by just using the software? Think about just a little bit.
Even a "dumba**" like me knows that if a software program could pick stocks, it would be too valuable to sell. Why would they be in the software business if they could print money by just using the software? Think about just a little bit.
cordoncordon
Master Don Juan
- Joined
- Jun 2, 2006
- Messages
- 2,890
- Reaction score
- 109
For those of you who are trading, I have a tip for you. MLXO. I can't go into particulars other that to say they will be announcing a MAJOR bio diesel deal in the next two weeks. The stock trades at .015, and i expect a rise to 50 cents or HIGHER by fall.
BTW, I daytrade stocks for a living
.
BTW, I daytrade stocks for a living
.cordoncordon
Master Don Juan
- Joined
- Jun 2, 2006
- Messages
- 2,890
- Reaction score
- 109
Good luck
Last edited:
