Best trading strategy

>pick biz meme stocks
>short them

BUY HIGH SELL LOW

>>1821721

makes no sense at all - if your long and short position are the same size then you've got no overall position

if one is larger than the other then you might as well have just put on the net position

you're gaining nothing from doing this other than exposing yourself to higher costs/more commission

Next time you go to buy something short it instead and go long when you close the short

Just do the opposite of what you are about to do instead

>>1821721
What if I push and pull at the same time?

>>1823553
does this rlly work? cause i caused the jnug dip

well some people will buy a stock and write a covered call. You do that when you want in, but you think the stock is going down. Like right before the ex div date.

>>1821721
So there is a possibility that you get gamed a little by HFTs they can force you to take a worse price (maybe a penny difference).

But more likely is that you are just exhibiting the same psychology as everyone else... I guess it depends on which factors you make your entries on... if it's """"technical analysis"""" and/or feeling the charts, then you are reacting the same as many others. "Smarter" people take advantage of this herd behavior to cause the herd to lose its nerve and sell at a small loss.

I'm assuming that you are a day trader.

>>1821721

This strategy is basically .a type of hedge which would reduce your profits or your losses. You assume that the stock would rebound, but if it doesn't you'd only reduce losses.

And if you're assuming the stock will zigzag, then short first buy after...

You're aren't addressing the underlying issue of what i suspect is being a little trigger happy to buy and sell.. You should enter positions that you've gained enough info about to have the nerve to watch it go down a bit.

>>1821721
Maybe you should hold for longer time frames

If you notice that stocks consistently nosedive continuously for years the second you buy some shares, that's pretty hilarious and sad at the same time. Made a YouTube series of your incredible misfortune and some big companies might hire you as a consultant to put bad juju on their competitors

>>1821721
>everytime i buy something, it ALWAYS goes down in value.
Why not just short everything you would have bought, then?

>>1823593
implying somebody who thinks the market is reacting to him has the ability to write options

File: HaroldETH5.jpg (930KB, 1846x1212px) Image search: [Google]

930KB, 1846x1212px

>>1821721
Don't buy Ether then because we're going to the moon.

>>1823720
it ain't hard. i did it once. made 50 buckroos.

>>1821721
Not sure why nobody is saying this but you can't simultaneously have a long and short position on the same financial instrument.

>>1821721
No, this sounds crazy but this can actually be a very effective advanced strategy. Going long and short at the same time on 2 different accounts is called boxing

Most of the time, you would only do this if you pretty much know the stock is going to crash today, or you know it's about to have a huge rebound. But you're not entirely sure, so you go long and short at the same time. If it's obvious that you were wrong, you just close both positions for break even. If it's obvious that you were right and it starts going your way, immediately close the long position if you want to short it or immediately close the short position if you want to long it.

It's a very good strategy actually.

>>1823737
Pretty sure you can.
Just not at the same brokerage.

>>1823737
Yeah, you can. Just open 2 order windows from 2 different accounts. If you're using a 3rd party software like DAS trader or sterling trader, just click the drop down menu on account to switch

>>1823766
Lol.
We used to be able to do this to get the long term capital gains break, you just hold both open for a year, then realize your profit (or wait longer until it does).
Unfortunately, they outlawed that shit.

>>1823737

a saddle spread

Theoretically, you can completely avoid an unrealized loss by doing this (you'll still lose a tiny bit cuz of commission fees) while still being able to make large profits. Just try to box the lowest price of the day or highest price of the day, and if you know it starting to change trend from there, "unbox". If it keeps going further down or further up, just close both positions and try again. You'll eventually get a position at the very top for a short or very bottom for a long.

>>1823790
Do you need any capital on your account to short?

>>1823800
Yes. Usually a significant amount, because shorting requires borrowing money from the brokerage, by definition. This means a margin account, which brokerages won't give to everyone.

>>1823822
So say i have 25k on Etrade, will that be the amount available to lend then?

>Short a stock
>it drops
>Buy the dip
>it rebounds

heh...

>>1823831
SEC rules will allow your brokerage to give you 2 to 1 leverage, 4 to 1 for intraday.
With $25K you'll have $50K available to use from day to day, $100K during the market day, assuming you liquidate half of that before the bell.

>>1823841
Soon i got 100k capital, oh imagine the daily profits.

>>1823850
The fun part comes when your intraday position eats shit, forcing you to sell a lot of it at a loss.
Oh the great times you'll have!
Takes me back.

>>1821721
learn WHY people trade and you will start to make some money. psychology baby

>>1821721
the reason it drops is because large high-frequency traders can buy it and sell it to you for a markup before your order goes through.

They'd do the same to your short. That's why Bernie wanted a transaction tax.

>>1823737
>Not sure why nobody is saying this but you can't simultaneously have a long and short position on the same financial instrument.

I already have here:

>>1822926

as for these workarounds:
>>1823775
>>1823779

It still doesn't make any sense, you're still net flat, it is still the same effect as having no position (or potentially worse than having no position if you're paying overnight interest charges)

>>1823766
that just makes no sense at all

if you're long and short then you've got no net position - it isn't a strategy... closing the long position is the same as simply going short... except you're paying more in commission and crossing the spread a couple more times... as far as strategies go it is pretty dumb

>>1825292
high frequency traders aren't psychic

if you're using a proper broker then they've got no prior knowledge of your order

>>1823766
That's literally the same thing as holding off on buying or selling until you know which way the market's going to go.

Just do the opposite of whatevet you think is right, its called the george costanza method

>>1825685
>>1825706
its helpful if you're trading something very volatile intraday. it will help you secure short borrows since the most volatile tickers have very limited available shares.

try shorting the top on a low float crap like XGTI, MYOS, KBSF. you dont want to get in early because it spikes at a rate of 5-10%/second. even if you're very good at reading the tape and picking the top, you probably have no shares to borrow by the time it actually hits the top because everyone is scrambling for short positions. box it slightly earlier, at what you think is close to the top. much easier than fighting against other short sellers with massive accounts when its obvious that its starting to crash

>>1825681
>It still doesn't make any sense
I never argued that it made sense.
Only that it's possible to execute.

this thread is good