Short And Long
Q: I am sure this is a very basic question, but what is the difference between buying Short or Long?
A:
I am a virgin when it comes to this whole thing, as is obvious from my post
about Short and Long.
From your post, I assume you are saying a company stock price variation is not
necessarily related to company activities, more the market activities. This
is what I assumed, and why I also assume it is possible to trade based on
charting wi
I intend to use MetaStock for charting and to spend a while doing some paper
trades to develop some sort of system. Hopefully, I can develop some system
that will keep me in the game without going broke.
That's a good start. Remember, when you are ready to execute an actual
trade using real money, start with low number of stocks to buy/sell
and see if can at least break even. Just to keep in mind that being
successful in paper trading, does not always translate to real success
in actual trading.
That is the point. Lack of attention to it has wiped out a whole crew of
people who "used to" post here. Enthusiastic 'hypsters' of trash paper who
ran out of money to play their games. Follow the leader types who did
what the 'hypsters' suggested. Naive youngsters who were looking for a
"hot stock" and got burned. Lots of people, all of them ignoring that
basic point which is that you MUST avoid going broke in order to stay
in the process long enough to make any money.
Incidentally, I had a first run at translating ASX trading records
into the standard format that I use. While I was at it, I had the format
proggie do a quickie analysis of the number of stocks on July 9 which
traded at more than A$2.00 with volume of at least 30,000 shares. Too
low priced, or too thin trading are dangerous aspects in and of themselves,
regardless of anything else. Found 147 of them. That's a nice beginning
number for further analysis, although the price level and average daily
volume requirements almost inevitably are going to have to be raised for
anyone actually trying to trade on the ASX.