Theone's easy money, short the garbage goldmine...

the easiest money to be made on the stock market is shorting, the secret's out... yes, I did say easy money... take BP for example, with the Gulf spill a couple of years ago, you'd have to be a complete moron to think that stock was gonna do anything but tank. Facebook IPO, same deal, with a P/E of 92 and no earnings there were those that thought it was gonna go higher, well not this nut, I rode Facebook down from $32 and still have an open short position on the turd, I believe Facebook will reach fair value in the sub $10 area and with close to a billion more shares to hit the market before the year is out and all the whales selling for a tax loss sub $10 is certainly not out of the question...

the premise is simple... scan for bad news, earnings, whatever and go short... the fact is, anyone can predict that a stock will tank on bad news and they always do tank, much harder to guess when a stock will go up, the fact remains that it takes a lot less effort for a stock to go down than it does to go up especially in these market conditions...

got a tanker? post it... my pick for the time being is Facebook, lotsa room to go down... let the games begins...

Quote:

Originally Posted by Datemike 

nice thread. Shorting volatility related etfs after a major spike has potential. Even if you buy calls against it there is still plenty to be made.

 

yep, thats what I'm talkin about... I'm tired of speculating with other speculators on whats going up... so much easier to short a corporate disaster like RIMM, BP and FB, the easiest money I have every made and the best sleep I have ever had with open positions KNOWING full well that the price is going into the shitter and profitting from it... no speculating involved just plain common sense...

Quote:

Originally Posted by draker 

I think you're on to something here... lol

 

I'm waiting for facebook to come off this 3 day rally.. burn baby burn..

ya think? shorting is the easiest money on the stock market... they ALWAYS go down on the slightest bit of negativity but you never can tell what they'll do on even the greatest news...

Quote:

Originally Posted by Rock Sexton 

 

You don't think shorting is speculation?  That's what we do as traders - we speculate.  Whether that's short or long.

 

The reason you don't understand what stocks do on the "greatest of news" is because you don't understand what the news is used for in the first place.

 

There is money to be made on both sides of the coin.  "Easy" is a term I'd never apply to anything about the market.

oh yeah? ever heard of the 'odds'? are you  telling me there were speculators that were betting the BP would have made some gains on the Gulf spill news? if there were, they were speculators that lost big. thats not speculation buddy, thats just common sense... speculating, would be thinking that the Toronto Maple Leafs have good odds at winning the Stanley Cup this year, now THATS speculation, if thats a bet you're will to take then you are a speculator when all the common sense in the world tells me they probably won't even make the playoffs... the FACT is that stocks will ALWAYS tank on disasterous news and the easiest money in the world is to short that shit... an 8th grader could have told you that BP, RIMM and FB would all tank, how is that speculation? I call it going for the easiest pickings cuz its all about one thing to me, making money the easiest way possible... I don't care to take the time to understand why a stock won't budge north on the greatest news, thats a waste of my time...

Quote:

Originally Posted by Rock Sexton 

 

Because you're speculating how far down the stock will go ..... same as people who speculate how far a stock will move up.

 

You're oversimplifying the process by cherry picking examples.  

I've yet to lose on a short position, EVER... though, I have never been able to pick a bottom and cover at the exact bottom... I usually shoot for the point when one of my shorts would normally make it to your pinch thread... and yeah, I thought I was oversimplifying things by picking examples which I have already shorted and why would I overcomplicate it? the whole point is easy pickings, granted there is not a corporate disaster every single day or week even but when they come they are about as easy as it gets, free money IMO...

you know, we could make good thread partners, I pick the drop (not hard to do when they become available) and you pick the pinch, FB for example pinched and bounced last week and is back on its way down... I pick the tankage and you call the pinch, lol

Quote:

Originally Posted by Rock Sexton 

 

News is funny to watch.   Retail always buys into the "news" rallies late, while smart money sells into them ..... makes for nice shorting opps.

 

Then conversely, they let the negative news shake them out of positions and smart money often gets to buy at wholesale prices, selling back into the retail chasers when they impulsively buy again.  

I'm a fan of corporate disasters... easiest money I've ever made...

Quote:

Originally Posted by rando 

Why would you ever share your 100% perfect record with anyone when you can just get rich and buy the entire stock market in a few years of easy effortless trading?

I have already shared the three, BP, RIMM and FB, I haven't lost on any of these or were you not able to read where I wrote 'I have yet to lose on a short postition'? do you want a screen shot of my trading account or will charts suffice?

personally, I don't care who trades with me or who benefits from this thread. I just thought it would be fun to share corporate disaster shorting opportunities, you sure don't need to follow this thread for that, CNN and the rest of the mainstream news does a fine job of posting oil spills, massive layoffs and other such corporate disasters and if someone is too stupid to not see the obvious money making opportunities in such disasters and wants to challenge me on it, fine, someone show me an instant where such a corporate disaster resulted in the stock price moving up and I'll gladly paypal that person $100...

somebody show me a higher risk to reward investment that can even come close to shorting a corporate disaster and I'll take this thread down. BTW, I am not talking about RSPs, savings accounts, mutual funds and such...

Quote:

Originally Posted by theone 

somebody show me a higher risk to reward investment that can even come close to shorting a corporate disaster and I'll take this thread down. BTW, I am not talking about RSPs, savings accounts, mutual funds and such...

still waiting... drug dealing doesn't count either...

Quote:

Originally Posted by Rock Sexton 

 

Once again just be constructive here, but what exactly is a "corporate disaster"?  These are your own perceptions of what comprises one and that can vary person to person. Eventually all of these companies find a market "value" so just shorting them into oblivion isn't a time tested strategy.  You still have to know historical supports and valuations.

 

You've given us "past" examples that you were not around to call out for shorting and give a target.  One absolutely must have a target, otherwise the plan of attack is only halfway done and would just be trading by the seat of the pants.  I think it might be best to hold off on the superlatives until you've demonstrated this quote unquote EASY strategy you have.   One strategy that works for people is often relative to the kinds of people they are.  There are some people who are absolutely not cut out for shorting.  

 

TO, I think you should also understand the irony of showing up with a journal like this talking about easy street.  I know if it were that easy and I was making this ungodly amount, I probably wouldn't be posting on HSM ..... I'd be off living the dream.

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.