InvestorsHub Logo
Followers 19
Posts 1871
Boards Moderated 4
Alias Born 11/06/2000

Re: dvdmogul post# 281209

Sunday, 08/08/2004 2:15:53 PM

Sunday, August 08, 2004 2:15:53 PM

Post# of 704019
Please forgive my lack of detail in making an obvious over generalization. I presumed that the turnips (being highly market educated) would comprehend that whomever is a seller (regardless of the parameters of the sale) is selling because they no longer feel the potential for continued appreciation is as great in the issue they are selling as it is elsewhere. Likewise one buying an issue believes there is greater potential for appreciation in that issue than elsewhere.

Buying is inherently optimistic, that optimism may be subdued and factually based but it is optimism none the less.

Selling is inherently pessimistic, though that choice to sell may be based on different "intent" (short - "It's going down!", long - "It's gone as High as it's going to for now.") the end result is the same. Again though the decision to sell may be thoughtful and factually based, it is still pessimistic.

Supply and Demand and the Price of a particular Issue are the result of the complex interactions of these two groups of buyers and sellers. Depending on which group is prevalent the price will advance or decline accordingly.

Please be advised that this simplistic view does not take into account the various other forces that can contribute to the equation (ie: an increase or decrease in the float).

In your example you state you "sold" some stock because "the prevailing trend was to the downside". In other words you felt that stock had low potential for appreciation. That is not an optimistic view of that particular stock!

BTW, This is not meant to ridicule anyone. Even the staunchest of optimists are pessimistic about certain things or at certain times. Likewise even the most pessimistic individual will be optimistic about some things on occasion. Nothing is abnormal about either state.

Wishing you well,



The Bird of Prey
#board-381

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.