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Thank Martin and Andrew for your valuable comment. I will try to
explore the method proposed by Martin to gain some confidence level
and determinate again whether the short sell is suitable for me.
Edwin
--- In Metastockusers@xxxxxxxxxxxxxxx, "Andrew Tomlinson"
<andrew_tomlinson@xxxx> wrote:
>
> The issues around selling short are not indicator issues - they are
> execution issues. You're going to have to know how good your
broker is at
> locating shares to borrow, whether they will pay you interest on
the money
> you're going to be lending them and whether your back-testing took
into
> account extra slippage due to the uptick rule. Then you're going
to have to
> see if your broker's account screens and margin systems can even
cope with
> short sales in a comprehensible manner. Are you going to be able
to react
> quickly when your broker cancels your position because they ran
out of
> borrow?
>
> Check short interest ratios before you even think about it. And do
remember
> while you're at it that while losses on a long position are a
maximum of
> 100%, you can lose much more than that on a short - a stop isn't
going to
> help you if the company gets bought out at a big premium. So your
position
> sizing model may need fine-tuning.
>
> Markets behave differently on the downside - they move down faster
with
> vicious bull retracements. It's a hairy ride. Oh, and by the way,
tax regs
> are against you all the way.
>
> Shorting is like options - you need to be very sure you know what
you're
> doing before you start - and the learning materials out there are
much
> better for options than shorting - there's no Shorting Industry
Council to
> hold your hand!
>
> If you just want to get a feel for that side of the market,
consider the
> Ursa or Arktos mutual funds. If Prechter is right and we've just
finished
> wave 2 of a big cycle ride, then a long term short will bring
stability to
> your portfolio for sure.
>
> Andrew
>
>
> -----Original Message-----
> From: edwinncw [mailto:edwinncw@x...]
> Sent: Wednesday, March 30, 2005 6:02 PM
> To: Metastockusers@xxxxxxxxxxxxxxx
> Subject: [Metastockusers] Re: short sell
>
>
>
>
> Hi
>
> Thank for your comment and recommendation on Roys newsletter and
> system. I will try to acquire more information from him, but
beside
> that, is there any other indicator in the Metastock sutiable for
> this?
>
> thank
> edwin
>
>
> --- In Metastockusers@xxxxxxxxxxxxxxx, "superfragalist"
> <jackolso@xxxx> wrote:
> >
> > Edwin, no offense intended, but based on your question you're not
> even
> > close to being ready to short stocks. Shorting takes more skill
> than
> > going long and the risks are much higher.
> >
> > A moving average or two is all you need, if you know what you're
> doing.
> >
> > I strongly recommend you buy Roy's newsletter. Read all the back
> > issues and the April issue. Setup the SPY and QQQQ trading
system
> > that's written about in MSTT and practice on those two stocks. If
> you
> > get good at going long and short on those two, then you can
apply a
> > similar trading approach to other stocks.
> >
> > www.metastocktips.co.nz
> >
> >
> >
> > --- In Metastockusers@xxxxxxxxxxxxxxx, "edwinncw" <edwinncw@xxxx>
> wrote:
> > >
> > > Hi
> > >
> > > I am interested in short selling the stock. Can someone
> recommend me
> > > any indicator or formula are suitable for this purpose.
> > >
> > > Thank
> > > edwin
>
>
>
>
>
>
>
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