Originally Posted by theone
I never said this is a get rich quick schemeCorporate disasters like botched IPOs, oil spills, corporate restructuring, bankruptcies and such don't happen every single day, you gotta wait for them to happen and they will and do happen eventually. I am like a buzzard constantly circling the skies, patiently waiting for that sick/weak/starving animal to show it distress. I can wait a month for the next big disaster, I can wait a year. I never did say I made a fortune doing this either, you assumed that, but I have done pretty good on each of my shorts. So again, I ask you... take BP for example, who in their right mind would have though that the stock would have gone up on the Gulf spill news? was there ever any question in your mind of which direction the price would go? as far as when to get out? I can't tell anyone when to get out but I sure as hell know when to go short. Me personally? I try to cover when I see the chart about to pinch or see that the bleeding has or about to stop. When there is a disaster like BP, RIMM,. Nortel, old support levels don't really apply anymore, people are running for the gates.
The words "I made a fortune" never came out of your mouth, but your journal as advertised in your opening post: "the easiest money to be made on the stock market is shorting, the secret's out... yes, I did say easy money"
If it's so easy, that would imply you've made quite a bit of it, otherwise what are we talking about? I've studied, practiced, and observed many methodologies so I'm wondering how you arrived at the point that just picking a stock you "perceive" as bad and shorting it is the best of the best. What are your results? Burden of proof is on you because of your claims.
Some of the things you talk about are oversimplifications. There are stocks that report bad earnings or put out bad news and the whole point of which is a giant retail shake, because smart "in the know" money has already priced it in .... it's the retail suckers who don't know any better and willingly hand over their shares only to see the stock reverse immediately. You mentioned you know when to go short, but don't know when to get out .....again my point was that is only a portion of what makes a trade successful. To not have a target in mind leaves one susceptible to blowing profits. Pinch plays are commonly areas of short covering ..... but they're not directly implying the down trend is over, that depends on other factors.
Don't take this as an attack, just constructive talk. Gonna need to see some "live" examples, however long that takes.