BF2S Forums BF2s Stock Competition

AussieReaper wrote:

bennisboy wrote:

DrunkFace wrote:

Short selling is such a scam, I have no idea how they can justify it's legality in the US.

its actually really not a scam, its quite a simple premise

Yeah but the traders are hoping on a stock failing, and I would not be surprised if they used whatever means at their disposal to make the stocks fall to achieve that goal.

omgzzzzzz conspiracy theories

AussieReaper wrote:

bennisboy wrote:

AussieReaper wrote:

Yeah but the traders are hoping on a stock failing, and I would not be surprised if they used whatever means at their disposal to make the stocks fall to achieve that goal.

omgzzzzzz conspiracy theories

http://www.justice.gov/usao/nye/pr/2006/2006Oct02.html

I would say wow, if people weren't also engaging in insider trading to make stocks they're long in go up as well. This shit happens both ways. In the long term, the value of a stock approaches its underlying value

bennisboy wrote:

DrunkFace wrote:

AussieReaper wrote:

Short sell everything.

Buy to cover on day 59.

Let's do it.

Short selling is such a scam, I have no idea how they can justify it's legality in the US.

its actually really not a scam, its quite a simple premise

But he heard it on tv during the financial crisis so it must be true Those poor mean people put AIG out of business because it made stupid decisions! How dare they!

DrunkFace wrote:

JohnG@lt wrote:

DrunkFace wrote:

Short selling is such a scam, I have no idea how they can justify it's legality in the US.

Umm, why? It's the same as a normal trade, just in reverse. The same risks apply.

You're selling something you don't own.

No, you're buying a stock at a lower level than and replacing the stock of someone else.

Person A is holding a stock they bought at $50. Person B "borrows" the stock, sells it, and rebuys the stock at $47. He then replaces Person A's stock with the shares bought at $47. Person A receives a fee for allowing his stock to be used. Person B gains $3 minus the shorting fee. Everyone makes money in this situation. Person B takes on the risk that the shares will not decrease in price and if that happens he is out whatever the cost increased by plus the fee. Person A simply mitigates the losses he would've taken by holding the stock long term through a dip (or makes a profit if the shorter made the wrong decision). There is a lot of risk involved. It is by no means 'free money'.

Last edited by JohnG@lt (2011-01-06 06:01:23)

mcminty wrote:

Camm wrote:

Trotskygrad wrote:

I'm counting on GOOG to pump up my losses

I'm 10/18, dissapoint...

Fuckin Camm has first with his Verizon bs,

Just you watch, verizon is smart money

iphone on verizon, ay?

nada, we don't get Verizon in uk

I hate how you cant trade for opening. I wanted to short HAL (the concrete provider for the rig in the BP crisis, cos there was a probe slating them), as soon as the market opened, it dropped like a stone, but the damn delay wouldn't let me profit from it

bennisboy wrote:

god damn http://www.marketwatch.com/investing/stock/HAL

Well, that hurt me a bit

cokes making my biggest loss. Sold some microsoft and bought more google... reckon its all going to go wrong soon.

sold a chunk of my citigroup and bought up more MagneTek. And another chunk for some Nautilus.

Last edited by Nic (2011-01-06 08:00:59)

Verizon have raperoonied me.

Camm wrote:

Verizon have raperoonied me.

I knew it was a good idea to get rid of that shit stock.

tbh, over 2 months none of us are gonna make much. I might create a test portfolio to see what investing in indexes would return