/biz/ - Business & Finance

[Anonymous No.757995]

Day Trading/Short Selling.
I'm a total noob.

< this stock was recommended by a bizreali, quote -

'SPY will gap up Monday morning; buy SPY puts right at the open, and ride the gap fade down...you can be in and out in under 30 minutes'

Was he right?
What should I be looking at?
What actually happened?
I got the balls to do this stuff, I just get lost in the terminology and chart reading...

I need somebody to explain it to me like I'm a 10 year old, then I will fuck off.

[Anonymous No.758056]

>>757995
OP. You're gambling with your money. If you must ask questions like this, you should immediately exit / cancel this trade.

I reccomend reading into Day Trading. A great introductory book for me was High Probability Trading by Marcel Link.

[Anonymous No.758069]

>>757995
>Was he right?
No, SPY gapped down, and then has traded higher ever since the opening. That anon was 100% wrong.

[Anonymous No.758450]

>>758056
No, this wasn't me, I am not trading at this point, I am slowly learning. This is just a screencap from Yahoo! Finance of the stock in question.

I am dumb enough to think I can make money with dumb luck, but smart enough to know I am not ready.
You can practice this kinda stuff on investopedia, right?

Thanks for book recommendation too.

What the fuck is short selling though?
I tried looking it up, but I got lost in the terminology, I need it explained like apples and oranges type level.

Tommy buys five apples, etc

[Anonymous No.758512]

>>758450
If you don't understand short selling don't even think about trying it.

And dont think you can just read what it is and then go do it.

This is how people lose money.

> choose all the steak
>pictures of lamb chops
fuck you robot captcha

[Anonymous No.758855]

>>758450
> I am dumb enough to think I can make money with dumb luck
Do you want to be a gambler or a Daytrader? A Daytrader does not gamble with his money, a Daytrader executes High Probability Trades.


>You can practice this kinda stuff on investopedia, right?
I've never used investopedia. I study books, and have a Teacher that teaches me online.


>>758512
This Anon makes it seem more difficult a concept than it really is. It's pretty much buying stocks and selling for a higher price in reverse.

Example:
You've been watching a promoted stock, and have noticed a decrease in volume. You've noticed that this specific stock is not able to break resistance at 2.55, and fear shorts may sell off their shares to take profits, thus declining the price with the supply of shares.

Your plan is to borrow 200 shares from your broker at 2.55, and buy them back at 2.35, making a profit.

You borrow 200 Shares of ABC from your broker at 2.54, taking a negative position of -200 shares ABC

Your position is now -200 shares ABC - You need to buy back these shares.

The price cracks below support, hitting your price of 2.35. Your limit order for the purchase of 200 shares of ABC at 2.35 triggers, buying back your shares.

Because you bought back the 200 shares you owed your broker, you no longer hold a posistion, and made a nice profit.

Shortselling is great if you're feeling cynical about the stock of believe the market will reverse. This is how some daytraders made alot of money in 2008

[Anonymous No.760256]

>>758855
Also you need a fuck-ton of cash to short sell