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market_watcher

07/23/05 7:21 PM

#55618 RE: dvdmogul #55615

The intent of many short programs is inertia, because the available supply of stock against a strong fundamental backdrop ensures only one thing, a few or even one program architecht will know when to fish and when to cut bait.

I would think that inertia is actually a bad thing for anyone designing a trading program, whether short or long, because money is actually made taking advantage of volatility, upward and downward. Granted, there are long periods of time where selling volatility is attractive, but I don't know that shorting is the most effective way to make gains from a system of that sort. It seems like a more effective way of taking advantage of inertia is selling options.


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ajtj99

07/24/05 6:07 PM

#55627 RE: dvdmogul #55615

I've found Tim Ord's method of reading and interpreting volume quite enlightening. Prior to understanding that methodology, I really did not have a good grasp on the entire concept of volume.