How to buy the bottom

kivd · Dec 22, 2012

Quote from oldtime:

betting on the usd is a lot more interesting than anything else. Especially if they figure out a way to stabalize it. Then you could raise a family just selling short straddles.

My kids are already raised

so all I have to do is short it

until they come up with some reason why I should stop doing it

If it was so stabilized that you could make money on short straddles,
then the IV would drop cause the premium to drop, so then you wouldn't be able to raise a family selling short straddles.

oldtime · Dec 22, 2012

Quote from kivd:

If it was so stabilized that you could make money on short straddles,
then the IV would drop cause the premium to drop, so then you wouldn't be able to raise a family selling short straddles.

aint that the truth, everytime you think you got it figured out, they come up with some way to get you

at the moment I'm long aud and gbp

and short usd and eur

but it's not an easy way to go

and nothing I would recommend to someone just starting out

and the pathetic thing is, my only hope is, "Sooner or later, I will buy the bottom."

Daring · Dec 22, 2012

No one needs to buy the bottom or short the top, that's just an egotistical naive thought.

You just need to be right on direction.

Handle123 · Dec 22, 2012

Quote from Daring:

No one needs to buy the bottom or short the top, that's just an egotistical naive thought.

You just need to be right on direction.

Unless of course you are good at it. I don't look at it at all of selling the highs/buying lows as an ego anything, I have always looked at it as making money. I trade off monthly/weekly in stocks, many stocks have a very long history in the Dow 30 in which I mainly trade, so one learns the personality of what you trade. Whether you go with slope of an EMA for trend or Counter-trend, following your rules is where the money comes.

Daring · Dec 23, 2012

Quote from Handle123:

Unless of course you are good at it. I don't look at it at all of selling the highs/buying lows as an ego anything, I have always looked at it as making money. I trade off monthly/weekly in stocks, many stocks have a very long history in the Dow 30 in which I mainly trade, so one learns the personality of what you trade. Whether you go with slope of an EMA for trend or Counter-trend, following your rules is where the money comes.

It can be done occasionally but not regularly otherwise the list of Soros, Rogers, Buffett, and all the great ones would also be known as that + Handle123

Small risk, large reward, high accuracy does not come by frequently.

sle · Dec 23, 2012

Quote from Daring:
No one needs to buy the bottom or short the top, that's just an egotistical naive thought

I think I have mentioned this one before:
Picking bottoms gives you smelly fingers

tradingjournals · Dec 23, 2012

Quote from sle:

I think I have mentioned this one before:
Picking bottoms gives you smelly fingers

And, what does picking tops give?

tradingjournals · Dec 23, 2012

Quote from oldtime:

you just don't get it do you?

first of all, a bottom isn't going to do you much good unless you believe it is going back up.

That's why they didn't rebuy Tulip Bulbs in the basement

If depends for what. Examples: 1) cover short at the last bar before the bottoming process, 2) ..., and 3) ....

tradingjournals · Dec 23, 2012

Quote from Daring:

[B

Small risk, large reward, high accuracy does not come by frequently. [/B]

That is not enough. There is less frequent than that. Do you want to know?

oldtime · Dec 23, 2012

Quote from tradingjournals:

If depends for what. Examples: 1) cover short at the last bar before the bottoming process, 2) ..., and 3) ....

true, I was talking about the guys on tv. You can buy this stock, it is very cheap, with very little downside risk (since everybody that owned it already sold it) so what's the point if it's future prospects are not very bright? that's why I say you have to beleive it is going up.