Its 2000 all over again

Discussion in 'Trading' started by myminitrading, Jul 20, 2006.

  1. Why does the short trader have nothing in his account? You can't short without money in your account.
     
    #31     Jul 20, 2006
  2. jho

    jho

    Trader 2 should be long at $100, why does he get to be long at $10?
     
    #32     Jul 20, 2006
  3. That is exactly my point.
     
    #33     Jul 20, 2006
  4. I give up. This is the last time I will even speak to this as it is absolutely ludicrous.

    Trader 1.

    10,000 in his account
    buys 1000 shares at 10.00
    sets his stop at 8.00
    gets stopped out. He now has 8000 in his account

    trade 2
    10,000 in his account
    sells short 1000 shares at 10.00
    He now has 20,000 in his account
    He sets his stop at 12.00
    the stock moves to 12 and he gets stopped out.
    He covers, and they remove 12,000 from his account
    He now has 8,000 dollars

    both accounts are equal
    both accounts risked equal amounts.


    This is the way it works. Period. End of story. Done. Your wasting my time now. see ya
     
    #34     Jul 20, 2006
  5. Because the profits on the long side of TZOO began closer to $10 than $100, and the profits on the short side began closer to $100 than $10. Why should they both start at $100? So that we can make an imaginary 90 point move on the long side after $100?
     
    #35     Jul 20, 2006
  6. jho

    jho

    F that noise...what if the shorter wanted to short at $10? Then the starting capitalization would be the same.
     
    #36     Jul 20, 2006
  7. trade7

    trade7

    :)
     
    #37     Jul 20, 2006
  8. LOL you're posting this like I'm saying it isn't true. I'm not saying that at all. What you posted is true, but it doesn't disprove what I posted, so wtf is your point?
     
    #38     Jul 20, 2006
  9. eagle

    eagle

    Yes, there's different. You need a margin account for shorting stock while going long you don't have to have a margin account, a cash account is sufficient. LOL.
     
    #39     Jul 20, 2006
  10. My point is the RISK IS THE SAME. Your point is MEANINGLESS DRIBBLE!!
     
    #40     Jul 20, 2006