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Strategies & Market Trends : Stochastics

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To: R. Gordon who wrote (292)3/2/1998 7:24:00 AM
From: Kip518  Read Replies (1) of 927
 
Oh, just a small insight - you actually make a little more money going long than short. If you buy at 5 and sell at 7 you have made 40% --- if you sell short at 7 and buy back at 5 you make 28.57%.

Richard, are you saying that $2 made long is worth more than $2 made short? Is this one of those 2+2=5 deals? ;-] Seems to me that the only difference is how you tell your story. When it comes to storytelling the longs are the good guys and get the breaks (i.e. compute percentages from a lower base) & the shorts are the bad guys and aren't given any breaks (i.e. compute from a higher base). But the longs put up their own money in the hopes of making a profit & the shorts only make promises. Who is the gainer there? No matter how you tell it, to me $2=$2. Best wishes, Kip
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