What am I doing? I'm waiting for the trade to come to me! What are you doing?
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85% is amazing, congrats! If I may ask, what ratio of leverage are you using?
that MM seminar sounds interesting Pennies! I can't wait to get your take on it.
cheers!
PB
thanks SG, I see it now. I tried one of those auto SDC's before and you're right about trusting it. The human touch is definitely necessary!
SG, is that SDC a publicly available indicator and if so would you mind letting me know where I can get it and how to set it up? TIA
Thanks Jacki, you have a happy 4th too! :)
haha.... your last sentence pretty much nailed how it all works! Have a great weekend SG!
classic three's a crowd in the 1min E/U
I understand your frustration Sidney but precious metals are limited resource physical objects. Artificially leveraging them will only create bigger and bigger bubbles in precious metals, just take a look at the over-leveraged housing bubble as an example. I'm usually down on all govmnt interventionism but I have mixed feelings about it in this case.
E/U just kissed and bounced off of a "remembered line" which was a 1min three's-a-crowd that I added to my MT4 chart back on May 13th.
That's awesome simplegreen! I hope to start trading again real soon.
antman, I've been watching that 200 hr SMA as well.
that 200SMA is something isn't it?
thanks, I understand completely
thumbs up Sidney!
Now THAT sounds like a plan! :)
I'm glad ya joined. :)
It looks like the price of E/U is getting close to the remembered line of May 5th/6th, has anyone drawn fibs?
GM javalin and board!
I'm looking at the 5min E/U this morning and it's looking "crowded". What do you think?
PB
I'm glad you like the book javalin! It may seem weird but I haven't traded since I read it and saw the possibilities. In the past my trading and investing has always had an unbalanced and unhealthy element of fear and greed which didn't do me any good. I guess I'm in a period of un-learning right now and I'm trying to take care of business close to home. I do intend to get back in and start trying out what I've learned once I get other parts of my life straightened out.
PB
look'n interesting.
Awesome!
"If you're going to swim with the sharks, you might as well do it with people who have a great deal of experience in such matters. ..."
lol
You can say THAT again...... lol
AWOL? Me too! I don't know where you live but the weather at my house was amazing this weekend, I was out enjoying that! :)
That sounds awesome SG! Boy if I could trade without a lot of stress I would be a very happy guy!!!! Thanks again for this great board and all you do!
PB
Keep posting Buenijo, you're on a roll! *THUMBS UP*
SimpleGreen, thank you for that bit of insight into what that part of the book said. I think what the author is trying to say is that retail (amateur) traders should keep their risk very very low and let their investments (other people's dreams) grow. If their investments grow then that is wonderful because then the investor's (retail trader's) family and posterity may prosper for generations to come. I learned very early on in my trading that is was a very VERY dangerous game! It was dangerous for me but the book taught me that it was downright destructive to other people's dreams. I will leave trading up to the pros such as Greg Michalowski he can do it with minimal fear and greed. Trading is HIS job, NOT mine!
I really think the book is about investing for the future, not trading.
I gotta go right now, I have to get back to work on my own dream, my family has invested in me and I don't want to let them down.
Catch ya a little later
PanicButton
PS- I still haven't finished the book.
LOL .... My book is not available for lending anyway. If anyone wants one Amazon has them for sale and when they run out, they WILL make more!
WOWsers! now THAT is a comprehensive list!!!!!! I had no clue there were so many ways to destroy prosperity.
RCCH - Latest Press Releases
Short Selling Strategies
Wednesday, 25 May 2011 08:43
Short Selling Strategies: Two Dozen Types of Short Sales
By William Cate
There are dozens of ways to sell short a stock.
1. Traditional Short Sale: Borrow the stock against a fifty percent margin.
This is the only type of short sale that can be squeezed when the share price moves up because the short seller must add money to their margin account.
2. A Market Maker Short Sale: U. S. Market Makers are not required to make physical delivery of stock certificates when they sell it. They are assumed to be a repository of the company's shares.
3. A Brokerage House Short Sale: This is a decision not to execute a buy order from a client, but show the stock as owned by the client on their monthly brokerage firm account statement.
4. A Clearing House Short Sale: The Clearing House doesn't execute the buy order, but credits it to the brokerage firm client's account.
5. A Naked Short Sale: This is where two brokerage firms agree to trade stock in a company with neither brokerage firm requesting physical delivery of the share certificates.
6. An Insider Short Sale: This is when insiders with restricted stock use it to sell short their company. It's illegal. It was a common practice when the Regulation S Hold Period was 40 days.
7. A Ferrari Short Sale: This is where a bloc of stock is purchased. The stock is converted to derivatives, thus factoring the stock one hundred fold or more. The short sale doesn't occur in the Stock Market, but the derivative owners are holding a short position.
8. The DTC Short Sale: This is when Depository Trust Companies use the stock they hold to sell short that stock.
9. The International Short Sale: Stock's created offshore. The company is listed to trade outside the United States (usually Canada). However the company is trading in the States. The shares are sold into the States. The Short Sale is moved to the Primary Country, where the local brokers can ensure that the short position will be covered by the listed company, if there is ever a successful short squeeze.
10. The Arbitrage Short Sale: LTV - Scattered Securities is an example of this short play. The Court in the LTV reorganization determined the exchange rate for new shares for old shares at three cents. The Market didn't read the Court decision. The old shares traded far higher than the Court Ordered exchange rate. The short sale was done by selling old shares and buying new shares before the Court mandated exchange of share certificates.
11. The Street Stock Short Sale: Sellers who are insiders or who allege to be insiders sell counterfeit stock to buyers outside regular market channels.
12. The MIDI Short Sale: Brokers sell stock at prices well above the actual trading price of the stock. This has been popular with German OTC stocks sold into the Middle East. The gap between the sale price and the trading price is an effective short sale.
13. The Depository Receipt Short Sale: Using counterfeit stock, the seller deposits it into an overseas bank. They then sell Depository Receipts against the counterfeit shares held by the bank. I've seen this done in Asia.
14. The Rockford Short Sale: An investment firm buys shares and takes physical delivery of the stock certificates. They replace the real share certificates with counterfeit share certificates. Next they sell the real shares back into the Market and repeat the process. This practice does wonders for their balance sheet. The tactic was popularized in the Rockford TV Series. It's been done in Asia with NYSE shares.
15. The Tax Haven Bank Short Sale: Small (usually Caribbean) banks act as agents for their clients unwilling to reveal their identity. The client wants to buy stock. The bank doesn't buy the stock on behalf of the client. They simply show the sale within the bank's accounting system. This practice extends to gold etc.
16. The Lost Certificate Short Sale: Client requests share certificate.
Broker sends it certified to the slightly wrong address. It's returned to broker. Using the certified receipt broker claims the client has the share certificate. A year is spent in proving it never arrived. Meanwhile the broker has the share certificate and can use it to cover other short sales. This happened to me in Vancouver.
17. The Margined Short Sale: Buyer buys stock on margin. They can't take physical delivery of their share certificates. The broker sells the margined account non-existent stock (a short sale).
18. The Takeover Short Sale: Brokers add non-existent stock into a takeover with stock transaction. The buyer pays for the non-existent shares. The short seller gets cash or stock in the buyers company.
19. The Attrition Short Sale: For OTC stocks about 3% of the beneficial owners of the stock disappear each year. They die, forget they own the stock, etc. Brokers can safely sell short 3% of the float each year relying on the fact that the beneficial owners will never claim their stock.
20. Counterfeit Stock: Professionals regularly send counterfeit share certificates to Transfer Agents. A surprising percentage are accepted as real share certificates. The result is the professional effectively has sold short the shares involved in the certificate.
21. Issue Depository Receipts without holding the stock and sell the Depository Receipts.
22. The Warrant or Option Short Sale. Buyer holds the right to exercise warrants or options, but doesn't do so. Instead, they sell short the stock and use the options or warrants as insurance. This was popular among VSE underwriters in the 1980s-1990s
23. Reg S Short Sale. Same format as the Warrant or Option Short sale, but using cheap Reg S stock. The short seller is exposed for one year.
24. The Lending Short Sale. This was used by the guy who introduced me to the business. You offer to lend 90% of the face value of the stock to the borrower for a long period of time. Your interest rate is better than that of a bank. You take in the stock and sell it. You lend 90% of the proceeds from the sale. You are now short the stock. You collect your interest payments until the borrower defaults on the loan.
Thanks for that post
I had a similar conversation with my father today and I'm in 100% agreement with everything you have written, thank you Buenijo!
That's a smart move javalin! I only got to a certain point too, I'm still trying to understand it all. I tried reading more but it just won't sink in yet. Keep at it!
Hi Sidney, If you're holding some, keep it.
You're very welcome javalin, I'm just beginning to understand the enormous magnitude of it. It teaches many lessons. Let's stay in touch. I know I told you that I wouldn't post here but I think I'm here to stay.
BTW, I still haven't finished the book. I think there is much much more.....
The TRUTH is amazing and mind blowing isn't it.
It's the KISS principle: Keep It Simple Simple
"simple" is all you need to know
Did you get THE book yet? When you get it, skip to page 190, all the rest is noise, the graph at the top of the page is THE "key". This is the definition of risk and greed. And we ALL KNOW that those qualities are BAD so why to we play it? All we've been doing all this time is "setting up" other human beings to "be played". I will do that no more.
PS- the previous page has a hint which I will give you, THE simple moving averages are 100 and 200.
PSS- the rest of the book is well worth reading too I just haven't finished it yet.
You are very wise man pennies!
PB
Hi 4kids!
Those of us with that have a remnant of functioning gray matter will be in extremely high demand down the road!
PB