Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Take the Money and Run -- Ignore unavailable to you. Want to Upgrade?

To: gypsees who wrote (6343)	6/27/2002 2:49:46 PM
From: Original Mad Dog	Read Replies (1) \| Respond to of 17639

Newton's Law of Trading...I love it!

To: gypsees who wrote (6343)	6/27/2002 2:56:21 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 17639

The equivalent of shorting in the stock world is going on margin. Some idiots have a problem with "borrowing" stocks because the stocks don't belong to the shorter. Of course, they are awfully damned quiet when it comes to borrowing cash to buy stocks. Both have similar effects too. Buying on margin can help to create extra demand which can cause stocks to go up even more. Shorting stocks can create extra supply which theoretically cause stocks to go down. Of course, the delta between the number of people going short and those who are using margin is so large as to render the shorters to be insignificant in their influence in most cases. The one place where shorters can be a heavy influence in the stock direction is when they cover. A short squeeze can often be the catalyst for a bull run. The thing about a short position is that at some point, they are going to buy that stock back. That will create demand. Someone who is long on a stock no longer has any influence on the direction....except down. They create the real selling pressure. And when a long sells, there is no guarantee that the position is going to be bought back. Therefore, they provide no positive influence on a stock once they have their position. The fact is, people who are long a stock want it to go up so that they can sell the stock.

To: gypsees who wrote (6343)	6/27/2002 3:05:30 PM
From: ChrisJP	Read Replies (7) \| Respond to of 17639

Hi gypsees -- the things I will say to get some mail in my in-box, lol ! You asked: Is it parasitic to sell a house versus buy one? My answer: No. But you should have asked, " Is it parasitic to borrow a house from someone and sell it (meaning you never owned it in the first place) versus buying one ?" My answer: Yes. :-)) Does trading stocks (both long and short) contribute one iota to our Nation's GDP ? When the day is done, has a day trader built anything or provided a service of any value to anyone (other than to themselves) ? Ummmmmmmmmm ....... I don't think so....... Chris