Mario wrote:
>> Oh, really? Oh, I'm
>> sorry................. but one confuses Chimbel with
>> Kashmir and thinks he knows more than Digambar Kamath
>> about the approval process for building projects in
>> Goa and the other genius tells us he bought gold at
>> $280 but forgets to tell us he also bought gold at $1,000:-))
Gabe Menezes wrote:
> RESPONSE: I too would have loved to have bought Gold atUSD280 as well
> as USD1000; no need for a rocket scientist, to figure the average is
> USD640...which is well in the money.
> Some more education, I suppose?
Gabe,
You maybe wasting your time trying to explain investment basics to Mario.
However, the same info may be invaluable to those who are interested in
investing.
As for trading, I have said several times here that I am sometimes "long" on
gold, sometimes "short" and sometimes have both "long" and "short" positions at
the same time.
For those who are interested, a "short' position means that you think that the
price of a stock is too high. You make money by betting that the stock price
will fall.
The mechanics are:
1) Call up your stock broker and ask him to lend you 1,000 shares of ABC
company.
2) Sell the shares at a high price, say $50.00
3) Buy the shares back at a low price, say $45.00
4) Return the shares to your stock broker.
5) Try and find a good use for the $5,000 profit you have made.
This is a high risk strategy. There are hidden dangers in this type of trading
and it is not recommended for those with less than five years experience in the
stock market. You have to be absolutely sure you know what you are doing before
you attempt the above.
An easier way of trading is to buy an entire sector through an ETF. If you want
to bet that the price of oil is going up, buy an oil sector ETF. If the sector
rises by 5%, so does the ETF. This way, your chances of participating in the
movement of the price of oil is much greater than if you bought the stock of
just one oil company.
Lastly, here in Canada their are "ultra" ETF's. The value of these funds
reflect twice the movement of the sector. For example, if the gold sector goes
up 5% in a day, the value of an "ultra" ETF will go up 10% that day. This
allows interesting combinations of long/short positions.
Mervyn3.0
PS. If anybody knows how to make money in real estate when prices are
collapsing, please share the info with us.
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