Friday, September 19, 2008

Im out! 20pt gain in 2 days...

I just sold my Goldman at $130/share for a $20pt gain in two days. That's $2000 in two days of investing.. The trading before the open up 40pts to around $144.. I was getting ready for work and missed the opening and a friend text me the news. He was also in the stock, just by coincidence. I have not traded in 4 months and I pick the same stock as my buddy to buy. I had not spoken with him in a month. Anyways , the stock came back down to $120.. then back to $130.. I decided to take what I got, a 18% move in two days.... There is a saying in trading, "Bulls make money, Bears make money, pigs get slaughter..!" Basically don't get to greedy in the markets.. Take what you can get.. try to find the middle ground. It's to hard to find the exact bottom or the exact top. I just shoot for something in between...

The SEC is banning short-selling for all US financial stocks. This is the dumbest thing I have ever heard of. I guess the UK did this yesterday for just financial stocks, also. This tells me that the government really don't understand the market. Short-selling creates liquidity and for every short seller they are a buyer at a later date. When a stock is going down, sometimes the only buyers are short sellers that are covering. I just don't get how they think this will help. In China, short selling is outlawed and it has done nothing to keep its markets up. Its been in a bear market all year long. This ban will just create more volatility down the road. After the shorts cover and there are no buyers left, who do you think will support stocks in a downward spiral.


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