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Norm,
Read the post I sent to Eric, I also sent it to the list.
In this case the YHOO at 52 might very well be a loss. But I haven't
closed out my position yet. You know, it ain't over till it's over. Even
if it is a lossing trade, big deal. Over all I look at the bottom line.
Was there a net gain or loss after commission. So if YHOO at 52 is loss,
I could care less as long as net net. I make a profit.
Any way we all trade differently. If I take a position and average. If
one of the transactions is a loser and the other is a winner, but net
over all I am a winner. So be it. I still look at the whole process as a
win. If you do it differently that ok.
How do I view YHOO. Well a short at 52 that I could of covered for a
nice gain has now turned into a pain in the ass. But it is better to be
in the market than out. So all the trades that I am making now with
respect to YHOO will be treated as one event with many trades.
As far as $9.99/trade I suspect I'll have to make over 8000 trades
before the folks at Datek can run out and buy a "beamer".
It has nothing to do with taxes. There are a few times when I would
like to be long and short at the same time. Not often mind you.
As far as two account being confusing, not really. Just makes it
interesting.
Harley
nwinski wrote:
> Harley Meyer wrote:
> >
> > If you are short and it goes against in the short run you can't go
> long
> > in the same account.
>
> Harley,
> This is just a way to avoid admitting a loss. If you sell at a
> lower
> price in one account and buy higher in another account the same item
> and
> size you have a net loss but you have avoided realizing the loss for
> accounting purposes. It is still a loss and just adds to your delusion
>
> of thinking you didn't lose when you did. If you want to be successful
>
> at trading you must be willing to be brutally honest with yourself and
>
> eliminate all the psychological games. To be a succesful trader,
> "denial" can only be a river in Egypt. The only benefit that can
> accrue
> from your current two account m.o. is that your broker will be able to
>
> buy a new car sooner. The only reason I can recall for ever doing this
>
> is if you had a position in you tax deferred retirement account, i.e.
> IRA or 401K, and you wanted to trade against this position. But even
> then, this M.O. serves to muddle and complicate your trading. Trading
> is
> hard enough without screwing up your head with complications.
>
> Candidly,
>
> Norman
>
> r
> > Eric wrote:
> >
> > > Harley Meyer wrote:
> > > >
> > > > Thought I would give an update.
> > > > Recap: Short 50 shares @ 52 in 1 account
> > > > Long 50 shares @ 54 1/16 in another account
> > > > Problem there was a $100+ loss locked in.
> > >
> > > Sorry I don't get why you use 2 accounts to simply daytrade a
> stock.
> > >
> > > Eric
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