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Online Share Trading

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Debate: Long vs Short

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Werner_1
Super Contributor
Another debate topic to get us discussing... Firstly, I don't short shares, only long term, long-only investing in value/growth companies. I would like to know from those that are involved in both long and short trades, what is your performance ratio of profitability for long and short, e.g. have you made more money off long than short, equal or more off short? Would be great to discuss the stats of the differences.
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15 REPLIES 15
Werner_1
Super Contributor
Sorry, was a general post and not supposed to be under SHP.
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Rams
Super Contributor
On SSF, made lot more on short MSM.
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Werner_1
Super Contributor
do you have any reasons for making more short than long, I guess it depends on the share in question and what time frame one trades them. But is there logic in thinking that on the short side for short term trading, the drop can be faster than the rise on long side of a trade?
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Rams
Super Contributor
Well , MSM was an easy short ....over the last six months , but overall make much more on longs....
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Werner_1
Super Contributor
oh ok. I guess most people prefer the long side... i do too.
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Blik
Super Contributor
For some reason I seem to be able to "see" a long better than a short...I have made marginally more on long than short.
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stores
Super Contributor
If I go short I halve my risk exposure. My rewards for longs and shorts are about the same. And here I am talking only geared CFD's.
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Not applicable
I challenge anyone on this forum to provide a 1) profitable and 2) programmable (take the discretion out of it) trading system for short trading. I am of the opinion it is not possible without exercising discretion. Long trading, on the other hand is easy to program. For example - randomly pick any 25 stocks trading with relative strength (365 day) to the ALSI. 10% stoploss to 30% gain dating back to 2009. Keep buying everytime you are stopped out or make profit (randomly buy a new stock) You should have about a 60% success rate.
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Not applicable
I challenge anyone on this forum to provide a 1) profitable and 2) programmable (take the discretion out of it) trading system for short trading. I am of the opinion it is not possible without exercising discretion. Long trading, on the other hand is easy to program. For example - randomly pick any 25 stocks trading with relative strength (365 day) to the ALSI. 10% stoploss to 30% gain dating back to 2009. Keep buying everytime you are stopped out or make profit (randomly buy a new stock) You should have about a 50% success rate.
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Rams
Super Contributor
2 moving averages: 7 and 21.... 7 above 21, long/ 7 below 21 short...try it on any intstrument, no discretion...
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Preston
Super Contributor
If we were to give you ) profitable and 2) programmable (take the discretion out of it) trading system for short trading, then we are giving away our competitive advantage. I have been burn't many times for shortening a share but i can honestly say, it was a lesson well learn't. Shortening a share is a skillful art. Have a look at my thread of MSM where i called the short on Monday night. Share is 9% down in 2 days. I will share something but not the art of shortening.
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Preston
Super Contributor
If we were to give you ) profitable and 2) programmable (take the discretion out of it) trading system for short trading, then we are giving away our competitive advantage. I have been burn't many times for shortening a share but i can honestly say, it was a lesson well learn't. Shortening a share is a skillful art. Have a look at my thread of MSM where i called the short on Monday night. Share is 9% down in 2 days. I will share something but not the art of shortening.
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Rams
Super Contributor
no art,no skill, no discretion...any system...will give you a long, a short,or a neutral position, take away your bias and the short is as easy as the long...
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Not applicable
challenge accepted - I will back test on Amibroker and let you know the results
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Preston
Super Contributor
sorry, respectfully disagree with you. Worth noting, that RUSS seems to have grasp the concepts on EFFECTIVE shortening.
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