Shorting Like Stocks
What I have been working on for the majority of this contest is getting a firm understanding on stock shorting. There was a time in the not so distant past that I had no grasp on it at all. In this contest, all of my trades, but my first one (which I made a quick gain a boucing SIRI) have been shorts. One of the things that I have been playing around with is finding a few stocks that are closly related and shorting them all at the same time. The idea behind this is that if there is big news affecting these like stocks, it should affect them relativly in the same mannor
The three stocks that I worked with at the start of the contest were KBH, STV, and TOL. All three of these are building companies and the issue that was really affecting them was the hurricane season that is now coming to an end. All three of these stocks performed very well over the summer months, and when the summer started to end, they started to fall. I admit that this might be a stretch for finding a stock to short, but the idea is to find a gerneral pattern, not something that is going to happen right now. These stocks are now starting to get out of pattern at the moment, so I have covered my position. I still am holding 500 short of STV, but that is all at the moment. I am now working on finding another set, so look forward to a post on a few picks in the near future.
I guess the main lesson here is if you are doing all the work researching one stock, researching a similiar one might not require much more effort.
Good Luck With Everything!
Mark Zimmer
The three stocks that I worked with at the start of the contest were KBH, STV, and TOL. All three of these are building companies and the issue that was really affecting them was the hurricane season that is now coming to an end. All three of these stocks performed very well over the summer months, and when the summer started to end, they started to fall. I admit that this might be a stretch for finding a stock to short, but the idea is to find a gerneral pattern, not something that is going to happen right now. These stocks are now starting to get out of pattern at the moment, so I have covered my position. I still am holding 500 short of STV, but that is all at the moment. I am now working on finding another set, so look forward to a post on a few picks in the near future.
I guess the main lesson here is if you are doing all the work researching one stock, researching a similiar one might not require much more effort.
Good Luck With Everything!
Mark Zimmer
posted by Mark Zimmer at
9:44 PM
1 Comments:
It's interesting, I can't describe who is telling us there info until i look at the signature. Keep it up guys. What you came up with is an awesome idea.
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Anonymous, at 9:27 PM
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