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Topic: Long or Short ? (Read 1 time) previous topic - next topic

DuaneB

Hi

Anyone long or short facebook or anything else for that matter ?

Duane B

rcarduino.blogspot.com



Graynomad

What does that mean?

_____
Rob
Rob Gray aka the GRAYnomad www.robgray.com

DuaneB


A grossly simplified answer would be -

Long = have stock
Short = sold stock to someone else without having it in the first place, ultimately need to buy it to settle the original trade but hoping to be able to buy if for less in order to make a profit on the difference.

In terms of outlook -

Long = optimistic on prices so buying
Short = expecting falling prices and employing a strategy of to turn a profit on this assumption

Duane B

rcarduino.blogspot.com

Graynomad

OK get it, just needed the context, for example I believe long and short meant something a lot different to the guys fighting in Vietnam.

When I retired I thought I'd get into trading to earn some more money, then I decided to spend less so I didn't need more money, that was easier :)

______
Rob
Rob Gray aka the GRAYnomad www.robgray.com

DuaneB

Easier and wiser.

But if your still working and have an income to replace the money you are potentially losing an occasional moderate punt on the price of oil doesn't hurt.

Duane B

rcarduino.blogspot.com


Graynomad

True, I took a punt on the price of oil by buying a truck that only gets ~9mpg :)

______
Rob
Rob Gray aka the GRAYnomad www.robgray.com

DuaneB

I will happily take the other side of that bet !

Duane B

rcarduino.blogspot.com

Chagrin

#7
May 23, 2012, 06:14 pm Last Edit: May 23, 2012, 06:26 pm by Chagrin Reason: 1
OK get it, just needed the context, for example I believe long and short meant something a lot different to the guys fighting in Vietnam.


What does "long" and "short" have to do with guys fighting in Vietnam? :)

Out of curiosity how do you invest your spare money down under? Here in the USA the order would be something like:

1) Leave it in the bank (almost no interest)
2) Certificate of Deposit (very little interest)
3) Money Market (meh)
4) Mutual Fund (ok, but has middlemen)
5) Stock Market

We also have our "401K" which is a tax-free retirement plan (when putting the money in) but it's controlled by your employer and of course can only be taken out when you retire.

CrossRoads

"Short = sold stock to someone else without having it in the first place"
Is that also called a naked short?
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DuaneB

Hi,
   Yes, thats a naked short, in practice I don't have the means to take a short position and so I have to use derivatives instead.

The only thing I have ever made money on with any consistency is oil and right now its coming back down to a range where I will be happy to start buying again.

Once this Iran meeting is out of the way there will be a storm, a problem with a pipeline, scheduled maintenance, unseasonably cold weather (more AC Demand), unseasonably warm weather (more heating demand), etc etc etc.

Someone somewhere will come up with the reason to push the price back up 5 or 10 dollars and I plan to be along for the ride.

Not long yet, but starting to pay attention -


http://finance.yahoo.com/q?s=cln12.nym

A blog post from a long time back but the same reasoning still applies now that oil is back in the 80's -

http://canitrade.blogspot.com/2011/08/uso-saudis-got-my-back.html

Duane B


Graynomad

Quote
What does "long" and "short" have to do with guys fighting in Vietnam?

I just missed out on going (thank goodness) but I believe it was a term used to describe how long you had before you came home, ie if your were "short" you were near the end of your tour.

Quote
how do you invest your spare money down under?

Well of course it varies according to the individual, personally I've had a gutfull of the professionals losing my money and charging me for the privilege, I still have one share-based investment that matures in 2-3 years but I've pulled everything else out and put it in the bank. The money in that investment will follow when it matures.

We can easily get 6% in the bank so why frig around with the share market unless it's your interest? I can actually live quite well on $15k pa so don't eat the capital that much and it should last me until I get the pension.

We also have "superannuation" which sounds like your 401K, employers contribute and $145k of that money is locked until age 55 at which point you can take it, the rest is locked until you retire at ~65 (I think). You can also contribute with pre-tax $ and that money can be removed from the scheme any time (taxable at 15% I think).

Last I looked that was the deal, but it changes every week and it's impossible to follow.

Of course there are dodgy super schemes, schemes that just have bad managers, and schemes where the managers abscond with the money and move to Brazil. And then I don't trust the government to keep it's grubby hands of the money and reckon they will stop lump-sum payments one day and force you to take an annuity.

For all theses reasons I prefer money in the bank.

Here endeth the Graynomad investment tutorial :)

______
Rob
Rob Gray aka the GRAYnomad www.robgray.com

DuaneB

Quote
We can easily get 6% in the bank so why frig around with the share market


Totally agree, unfortunately we get 0.75% so frigging about it is.

Duane B


Graynomad

I guess that's why all the money is coming over here. No matter just put 8x as much in the bank :)

______
Rob
Rob Gray aka the GRAYnomad www.robgray.com

James C4S

I prefer Blackjack.

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westfw

Long CSCO.  Bunch of other stuff too.  Not doing great.  Better than my broker, though.

You left out bonds as an investment strategy.  ten year munis are paying (us) 4% or so, tax exempt.

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