Talk to cover short positions the same cover their short positions future career prospects Differen

Category: Money Tips Date: 2006-07-07

Most retail investors buy the stock after the quilt can take the initiative to take measures in only one way - to cover short positions. However, do not cover their short positions, as described in the theory as simple as smoothing the cost price, in many cases there is a skill to cover short positions, and make up badly but luckily more.

Cases Let the old and the old Ling is a large room, the richest two big. Upon joining the big room, both have a million yuan deposit, but after nearly a year of operation, a drastic shrinkage of the old capacity of assets, while the old Ling assets are easily doubled.

Rong like to buy the old falling stocks. In early April 2004, see Black Peony fundamentals are good, so in the vicinity of 13 yuan to buy one third of funds to buy a small profitable and did not go after, followed by Black Peony do not want to stock all the way down. The end of 2004 around 9 per share has been consolidation, so the old capacity to continue to re-cover their short positions in another third of the Black Peony. However, the subsequent share price has not been strong broader market rebound, on the contrary in the 7 yuan down the stairs near the finishing, the old Yung破罐子破摔mouth himself said: "I do not believe in Black Peony or so for a long time yet rebound, "then again around 7 yuan to the hands of all funds remaining across the board Mancang black peony black peony Unfortunately, as both hands can not afford to" Liu fools "continues on its downward path, in the broad market rally, when the rebound intensity of the smaller , and in the broader market fell, the Black Peony than anyone else and then drop rapidly. To May 2005, when the broader market fell sharply Black Peony is dropped to 3.5 per line, the old tolerance of extreme panic in the hands of all the black will be 3.39 yuan in the vicinity of Peony thrown across the board, resulting in huge capital inflow diminished tears end, the old capacity of remorse, said: "all cover their short positions harm me."

The old LING Gang also began to buy the same capacity with the old black-peony, but see signs wrong, cut the Gordian knot identification lose out. Followed by around 9 yuan yan network with one third of funds to buy the video, followed by the old Ling found that buying stocks on the money, very quickly to reach 9.50 yuan price line, the old Ling is not a profit out of the game, on the contrary taken by the older Yung unexpected practice, and one-third of funds to cover positions for Yan network video really cover their short positions well, Xin Net video in April 2005 has been steadily rising, Xi De-ling out of the old big room Yaotouhuangnao thoroughly enjoyed the sensation. Stock price reached 11 yuan soon, the old greeting old Ling Yung open positions quickly be secured, the old Ling is not only do not listen to the contrary, all funds will be across the board over the hands of position again in the 11 yuan to buy Yan network video, scared straight old Yung tongue, thinking this will have to lose the old Ling disaster. However, it did not, then climbing higher and higher Yan network video Do not look back, even in the broader market plunge has managed to successfully rise to the May 2005 stock equivalent to 14.50 yuan / share. Broader market fell sharply on their no effect, the old Ling easy profits over 60%.

Why unrequited love a Unit

Is also a margin call, but "future career prospects," different. Clearly the skills and concepts to cover short positions resulting in a significant impact on the cover their short positions. Let the old and the old Ling cover their short positions in different techniques makes the result of two diametrically opposite.

The general principle is: The falling Suliang opponents weak stocks can not easily cover their short positions, the so-called weak unit volume is smaller, turnover is low, having a performance in the broader market rally, when the rebound hard enough, but when the broad market decline is is easy to fall. Once the unit is defined as weak, then its cover their short positions to be cautious. Black Peony cover their short positions on the old capacity failure is that pairs of weak stocks continued to cover their short positions, he committed the operation taboo. People know not to cover their short positions to further entangle the operating funds, but to some sort of relief funds as soon as possible lock-out can not be sure to cover short positions in the shares of the market outlook will be strong under the premise of a hurry to cover short positions in the so-called low, the risk is significant.

The success of the old Ling cover their short positions because of the strength of his rival's shares to cover their short positions, because he found an upward trend evident Yan network video, when the daily turnover of large, high turnover, in large Pandie when the defensive Yan network video stronger rebound in the broader market rose Xin Net video first. In recognition of its shares is a strong, old Ling is the courage to continue to cover their short positions by the Italian capital the true meaning of success.
Some investors, parochial, identified in which stocks lose money, then insisted on that stocks added back. In fact, the speculation is the money in the stock game, lost in the A shares B shares in exactly the same effect as a bonus, eliminating the need for lovers clinging to this belief as loyal.