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Strategies & Market Trends : Investing for the Long Run

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To: tyc:> who wrote (43)7/7/2007 8:10:46 PM
From: tyc:>  Read Replies (1) of 68
 
blog cont'd

One lesson indicated by the last simple anecdote is this: You don't have to sell short to make money on the downside. Selling from long positions can be just as profitable, and a lot safer.

The reason I mention this is that I have just traded the last of my QQQQ for SPY following QQQQ's recent outperformance. I have noticed in other threads knowledgeable traders shorting the QQQQ, but it is continuing up to their dismay. Continuing up but now not as fast as my SPY is moving up !

If it drops, I can buy it back profitably using my SPY.
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