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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Bilow who wrote (3366)8/29/1999 12:31:00 PM
From: Cash  Read Replies (1) of 18137
 
I know guys who arb different stocks in the same group against each other. They go long the stronger stocks in the group and go short the weaker stocks. While I've seen them have a $2000 win in one stock and a $1000 loss in the other, I've never seen them have a $2000 loss in one and a $1000 in the other. Thus, while the upside is limited, the risk is also limited.

I also know guys who arb different classes of the same stock and do quite well with that, but the procedure is more suited for swing trading than day trading.
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