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Thread: Short selling is an obvious way of benefiting from market corrections.

  1. #71
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    Quote Originally Posted by Ellinas View Post

    Why you should never short sell...

    https://www.marketwatch.com/story/wh...cks-2015-11-19
    Are you sure about it ? Classics of investments like Jesse Livermore, W. D. Gann, Wyckoff etc have
    another opinion. I will quote here from the the book "Truth of the Stock Tape" by W. D. Gann:

    I am not going to tell you that it pays to sell short. I am going to prove it by records covering
    more than 30 years of market movements.

    A lot of people trade in the market for years and never realize that there are two sides of it.
    I heard often people remarks when stocks are declining fast "I cannot sell short." The man is
    a chronic Bull and will never succeed. Neither a chronic Bear will succeed any better. You must have
    no sentiment on how you make money in the market.....

    If you only trade on the Bull side of the markets, you will have 50 % more against you than
    if you trade on both sides. What chance has a Bull in Bear years....He may buy near the bottom
    of a break, but unless he grabs profits quick, he will soon have losses, while the Bear who sells
    stocks short on every rally, covers them on breaks and waits for rallies to sell again, is sure to pile
    up big profits because he is going with the trend, which you must always do.....

    Study the charts and convince yourself that, at the right time, there is just as much money on the
    short side as there is on the long side....

    Stocks are made to sell and the insiders sell them at the tops just as fast as they can. You are
    always safe doing what the insiders do...

    The newspapers tell you what the insiders want you to know, not what you need to know.

  2. #72

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    Quote Originally Posted by oak333 View Post
    Are you sure about it ? Classics of investments like Jesse Livermore, W. D. Gann, Wyckoff etc have
    another opinion. I will quote here from the the book "Truth of the Stock Tape" by W. D. Gann:

    I am not going to tell you that it pays to sell short. I am going to prove it by records covering
    more than 30 years of market movements.

    A lot of people trade in the market for years and never realize that there are two sides of it.
    I heard often people remarks when stocks are declining fast "I cannot sell short." The man is
    a chronic Bull and will never succeed. Neither a chronic Bear will succeed any better. You must have
    no sentiment on how you make money in the market.....

    If you only trade on the Bull side of the markets, you will have 50 % more against you than
    if you trade on both sides. What chance has a Bull in Bear years....He may buy near the bottom
    of a break, but unless he grabs profits quick, he will soon have losses, while the Bear who sells
    stocks short on every rally, covers them on breaks and waits for rallies to sell again, is sure to pile
    up big profits because he is going with the trend, which you must always do.....

    Study the charts and convince yourself that, at the right time, there is just as much money on the
    short side as there is on the long side....

    Stocks are made to sell and the insiders sell them at the tops just as fast as they can. You are
    always safe doing what the insiders do...

    The newspapers tell you what the insiders want you to know, not what you need to know.
    oak333 - I totally agree with this post if one has the right mindset for the required buy and sell points. I also need to note that probably 85% of investors - myself included, do not have the mindset or the time to effectively work both sides of the market which is "trading" as compared to investing.

    In fact many brokerage accounts do not "allow" selling short or leveraged ETF trading.

    I still think your posts would have more value if you were to post actionable information rather than just links to those publishing "bear" perspectives.

  3. #73
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    "You are always safe doing what the insiders do."
    W. D. Gann

    What do the insiders do then ? The data speak :

    http://openinsider.com/insider-sales

    Look at all trades, sales and purchases.....Draw your own conclusions.

  4. #74
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    Quote Originally Posted by Markpti View Post

    I like the Cramer. Don't get me wrong. I think he provides the most detailed and real-time educational service for his followers. But, as we all know, no one knows it all.

    Jim Cramer provides quite useful information......sometimes.

  5. #75
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    Chasing market strength ....
    ----------------------------

    could now be at your peril:

    https://www.zerohedge.com/news/2018-...gth-your-peril

    The bulls are attempting a jailbreak of the last compression (2 months).
    The recent recovery in equities was a forced short covering, energy stocks leading.
    The short sell signal was reversed, with a breakout of the consolidation range.
    Also the US $ and Treasuries were shorted in excess, which was corrected.

    The RYDEX asset allocation was oversold.

    https://www.zerohedge.com/news/2018-...gth-your-peril

    Overvaluation is prevailing.

    For those less used to RYDEX asset allocation:

    http://stockcharts.com/articles/deci...lications.html

    My note: To me it looks like a bear trap.
    "There is always cheese in a mouse trap."

  6. #76
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    Quote Originally Posted by oak333 View Post
    Chasing market strength ....
    ----------------------------

    could now be at your peril:

    https://www.zerohedge.com/news/2018-...gth-your-peril


    Also the US $ and Treasuries were shorted in excess, which was corrected.
    Indeed the US $ was oversold and there was a short squeeze. However,
    Wall Street calls for a time out on US $ resurgence:

    https://www.bloomberg.com/news/artic...big-resurgence

    The widening twin deficits are putting pressure on the $.

  7. #77
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    CNBC: sell stocks as another correction is coming.

    https://www.cnbc.com/2018/05/22/sell...aboolainternal

    Rising interest rates and a flattening yield curve are bad for stocks.

    https://www.cnbc.com/2018/05/22/sell...aboolainternal

    Reduced money flow and QT (Quantitative Tightening) are not good for equities.

  8. #78
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    I see that some inverse ETF's mentioned on this thread are up:

    SPXS up 3 %

    UVXY up 18 %

    This not too bad for one day !

  9. #79

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    Quote Originally Posted by oak333 View Post
    I see that some inverse ETF's mentioned on this thread are up:

    SPXS up 3 %

    UVXY up 18 %

    This not too bad for one day !
    Not too bad. As I write, the Asian markets are getting hammered. Negative sentiment could very well follow through to our market tomorrow. Big money could be made through those inverse ETF's.

    I'm a gambler but I'll pass on this bet. How 'bout you, oak333?

  10. #80
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    I try to hold on my winners and cut short my losers.

    Looking back to SPXS and UVXY, they were more than
    10,000 $ during the previous financial crisis. So presently
    the risk/reward ratio is exceptionally good. What else
    should then an investor do ?

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