A Simple List of General Do's & Dont's of Trading: Message Board

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Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading:

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To: debby who wrote (695)	3/9/2000 5:06:00 PM
From: Arthur Tang	Read Replies (1) of 769

Thank you for the question regarding shorts? Theorectically, anyone can short stocks. But in reality, you have to borrow the stock from full service brokerages who has customers' stocks in street name. Because in many cases they have to deliver the certificates. So, the chance of investors short is less than market makers or specialist. Since transactions go thru market makers or specialists, they made the offers, or tick up and down. They set the price. When market makers short the price goes up. When they want to buy back the price goes down. Investors create the demand when th price goes up; and later the supply, when the price goes down 30%. The advice is to buy when the market maker buys, and to sell when market makers sell. This is done by micro technical analysis. Buy at the bid price and sell at the ask price using limit orders, during the day. But if the chart shows continuing pull back, then you have to wait for a bottom to buy into the stock. Easy to be technical, but even professionals make mistakes.

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