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Thread: shorting the market, or why the
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03-06-2009, 10:50 AM #1
shorting the market, or why the
Market is tanking
Typically, the short-seller will "borrow" or "rent" the securities to be sold, and later repurchase identical securities for return to the lender. If the security price falls, the short-seller profits from having sold the borrowed securities for more than he later pays for them. However, if the security price rises, the short seller loses by having sold them for less than the price at which he later has to buy them. The practice is risky in that prices may rise without bound, even beyond the net worth of the short seller. The act of repurchasing a shorted security is known as "closing" a position
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03-06-2009, 12:28 PM #2
No, that is not why the marked it tanking. Short selling has been around for a long time and it's just another way of making a living. It's riskier so the people who do it know of the higher risks and get a higher return for thier risks. It's a free capital market and the only one who gains or looses is the one(s) who are dealing in the short sale. Eveyone above and below maintain their financial places.
"The American Republic will endure until the day Congress discovers it can bribe the public with the public's own money.
- Alexis de Toqueville, 1835
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03-06-2009, 05:01 PM #3
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03-06-2009, 05:21 PM #4
The problem is ths up tik rule is no longer in force, the up tik said you had to have a buy order before the short order could be filled plus they were shorting without borrowing the stock but I think they stopped that .This plus the hot money in the market that panics and sell drive stocks down.Anyone that shorts now may be in for a shock the market is way over sold
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03-06-2009, 05:32 PM #5
So, are you saying they'll 'get it in the shorts'?
Do not argue with an idiot. He will drag you down to his level and beat you with experience.
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03-06-2009, 05:38 PM #6
Always give up your shorts
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03-25-2009, 10:55 AM #7
Did I nail that sucker a few days after I said the market was oversold it went into rally mode and up over 15%
which is nice return for 1 1/2 years I was almost fully invested which I dont like to do .The market is now over bought but still going higher on good news I am slowly selling inio the rally and will reinvest on pullback.stocks can not be bough then held this methed has much greter return
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09-09-2009, 09:32 AM #8
Today is exactly 6 months since the start of the stock market rally,one of the biggest in history.See my post above dated 3/6.The market was in panic mode on that date. Even the post dated 3/25 was correct as we had a slight dip in april.This page should be sent to Forbes
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09-09-2009, 10:11 AM #9
well, the market is a reflection of the different forces that contribute to the overall economy. It will always have some value. I expect most of what we are seeing with this so called rally to evaporate as time goes on.
with oil having a high of 147.00 and could reach that plateau again, the market is sort of stuck with these mini gains and losses swinging profit takers on a daily plan instead of long term
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09-09-2009, 11:12 AM #10
For those of you who subscribe to regulation rather than market forces, cheers. Here's an article about why shorting is not the end of the world. In other words, keep your pants on Romeo. Shorting IS a source of info, as this article points out, even if it's info that is relatively negative.
It still accelerates an adjustment.
You just have to be quicker than the average honeybee to close the position before someone else can.
AC, since when are you going either/or with the regulation nuts, as in post #3? Wha's a matta? Did you take it in the shorts?It's great to be alive and pumping oxygen!
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09-09-2009, 11:16 AM #11
no, I stay out of the market. it has a history of evaporating retirementfunds every 8 to 10 years. I stay with the extremely safe and liquid, 3 monthCD's that rollover regardless of the rate of return. So far, I'm ahead. Ifeel its more important to put the money away and keep it than to invest in tomfoolery
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09-09-2009, 01:50 PM #12
The problem now is the deficet.As far as the market goes we have a little time for a fix.If they come up with a fix that does not harm us we are home free.If i see this is not the case i am going to bail
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09-09-2009, 02:14 PM #13


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