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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?


To: mongo- who wrote (30294)7/2/2003 7:24:36 PM
From: Jeff  Read Replies (1) | Respond to of 30712
 
make it fit anyway you want if it makes you feel better....

but the example is obvious when you put it in perspective to the fact.....

in a bull trend....the long thinking have a huge advantage do they not...and that 49k area shows that....

in a bull trend...the short thinking have a huge disadvantage do they not....that itty bitty 8k area shows that....

the bottomline...you short a bull trend...you get killed....the example shows that clearly and as to why shorts are in deep trouble.....

and many shorts know this as they are finding it very hard to get even close to getting out of the hole they dug....

its that simple....



To: mongo- who wrote (30294)7/2/2003 7:37:51 PM
From: chowder  Read Replies (1) | Respond to of 30712
 
>>> Obviously it is better to use less capital to make the same money, but that can't be helped sometimes. <<<

Using this strategy in managing money will make one a loser over the long run. The law of probability says you don't put 80 cents at risk to make 20 cents. You put 20 cents at risk to earn 80 cents.

An amateur looks to profits, a professional manages risk. Take care of risk and the profits come. Focus on profit by taking on additional risk, and one will eventually give back everything they gained.

Your dollar for dollar example increases risk exponentially.

dabum