Playing the market Long-Only.

E

EMini-Player

Do you think one can be successful playing the market long-only? I have a friend who wants to start trading with $15K initial capital, and wants to do it from his cash-only account. That way he's not restricted by the pdt-rule. Do you guys think one can be successful going long-only? Even in a bear market, there are always gainers.

Thanks for any info. :)

Later.
 
Quote from Fast_Trader:

Do you think one can be successful playing the market long-only? I have a friend who wants to start trading with $15K initial capital, and wants to do it from his cash-only account. That way he's not restricted by the pdt-rule. Do you guys think one can be successful going long-only? Even in a bear market, there are always gainers.

Thanks for any info. :)

Later. [/QUOT


NO. period
More...
 
Ofcourse you can but it does limit what you can do (Tony Oz did that in one of his books). With a cash account, he'll still be restricted by the rules since settled funds won't become availalbe till T+3. I.e. if he buys a stock for 15K and sells it in the same day, he will not be able to use the funds of the sale until the initial trade settles.

To get around it, he should look at Single Stock Futures.
 
Quote from TheCaracal:

[NO. period
More...


Hmmmm. Very odd answer.

That means you can't make money long, and all the money is made short only. Otherwise, going long only, you'd only make the trades than were profitable long (overall) , and just pass on the short trades.


Now that I understand the futility of long trades, I will probably do better. Thanks for the heads up!
 
Quote from Fast_Trader:

Do you think one can be successful playing the market long-only? I have a friend who wants to start trading with $15K initial capital, and wants to do it from his cash-only account. That way he's not restricted by the pdt-rule. Do you guys think one can be successful going long-only? Even in a bear market, there are always gainers.

Thanks for any info. :)

Later.
More...

Of course you can make money going long only. You can also buy puts in a cash account, can't you? You should even be able to do option spreads, but commissions would probably make it very difficult.
 
Quote from Fast_Trader:

Btw, does any broker allow you to short from a cash-account, but only up to your cash limit? So, he could short $15K worth of stock only.
More...

If you find one, they'd be violating SEC rules.
 
You must log in or register to reply here.
Back
Top