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Dr Alexander Elder On Selling And Selling Short
Notes on selling and selling short based on the interview:
* Short selling not common among average investors.
* Use proper precaution. Selling short is a normal thing. Market is a two way street.
* Money can be made regardless of direction.
* Elder always have both positions, sometimes more longs & other times more shorts.
* Market goes down faster than when it goes up.
* Most important software is between our ears, i.e. what’s inside the brain.
* Good software has leveled the playing field.
* Dr Alexander Elder like to short stock (a popular stock) making (crawling to) new highs but lack momentum.
Interview With Dr Alexander Elder: Why Watching the News Can Hurt Your Trading
According to the interview:
* News follow events, i.e. Market moves first, then news follows.
* Source of information: Wall Street Journal, Internet.
* TV: Everybody watching same ‘Tube’. Mood spread across market at the same time for the masses.
* Focus on: “Number News” / Major Earnings Release / Capacity Utilization etc
* Buy the rumor, sell the news.
* Standing aside when unsure – standing aside is a completely legitimate decision.
