StockFetcher Forums · General Discussion · Can Someone Answer This<< >>Post Follow-up
marine2
821 posts
msg #128019
Ignore marine2
4/17/2016 9:25:34 AM

Is there any proven data / backtesting proving whether shorting stocks / market was more financially rewarding than going long on stocks / market? Always considered shorting stocks but got timid because of its more extreme volatility than betting on stocks (if that is even true?). Can anyone help me on this?

four
3,949 posts
msg #128020
Ignore four
modified
4/17/2016 11:08:01 AM

ideas

http://www.mauldineconomics.com/resources/short-selling-101-how-to-short-a-stock-and-make-money-as-it-falls

https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/hedge-funds/v/hedge-fund-strategies-long-short-1

http://www.etf.com/sections/index-investor-corner/swedroe-shortings-costly-complexities?nopaging=1

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=16&ved=0ahUKEwjYpfiD-pXMAhWGaT4KHTmoDso4ChAWCEIwBQ&url=http%3A%2F%2Fpeople.stern.nyu.edu%2Fmbrenner%2Fresearch%2Fshort_selling.pdf&usg=AFQjCNGyguJUvjcx_6ULEudwwkjHlChnwQ&sig2=P5i1qxnVjV1Y5KTf0f-gJA&bvm=bv.119745492,d.cWw&cad=rja

http://tradingmarkets.com/connorsrsi/how-to-short-stocks-in-a-low-volatility-environment-1584665.html



marine2
821 posts
msg #128029
Ignore marine2
4/17/2016 11:50:32 PM

Thank you Four, I will check these sites out.

mahkoh
853 posts
msg #128044
Ignore mahkoh
4/18/2016 3:41:21 PM

Consider this: If you own a $100 stock and it gains 2% for 5 days in a row it is worth $110.40 and you profit $10.40. But if you short the same stock and it makes exact the same move in the opposite direction you gain only $9.61.

Kevin_in_GA
4,411 posts
msg #128047
Ignore Kevin_in_GA
4/18/2016 4:49:33 PM

Consider this: If you own a $100 stock and it gains 2% for 5 days in a row it is worth $110.40 and you profit $10.40. But if you short the same stock and it makes exact the same move in the opposite direction you gain only $9.61.

Or you have lost that amount by thinking it was going long. I think it is important to understand the market trend as well - no one has really done all that well shorting stocks over the last 5 years as the Fed has relentlessly pushed the market upwards. Now that the Fed has backed off it might be a good time to think short.

Or consider a market neutral strategy - equal weight long and short. I have always liked the statistical rigor associated with pair trades and would suggest reviewing that as a possible strategy. The challenge then becomes finding the right pairs ...

ThaGekko
139 posts
msg #128056
Ignore ThaGekko
4/18/2016 11:16:43 PM

take any strategy on this site an short it... probably works better than going long...

four
3,949 posts
msg #128080
Ignore four
4/19/2016 11:18:46 PM

Laurent Bernut, a systematic short seller

http://bettersystemtrader.com/032-laurent-bernut/
http://bettersystemtrader.com/044-laurent-bernut/


marine2
821 posts
msg #128086
Ignore marine2
modified
4/20/2016 1:49:05 PM

Or do a strategy where you take opposite stocks or ETF's that go opposite from each other. Example, try doing this with FVD vs BND etf's. Play Long with one or the other or, play them both to create a Long and Short situation and see which equity plays better than the other. And the beauty of these two equities are, they both give either interest or dividends while holding them. Another words, they keep on giving while you own them. Great huh!

Can you think of others that go against each other? If so, could you please share them with us. Thank you.

fotchstecker
158 posts
msg #128095
Ignore fotchstecker
4/21/2016 3:28:02 PM

Marine, just do a search for "inverse ETFs":

Here are a bunch:
http://www.tradermike.net/inverse-short-etfs-bearish-etf-funds/

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