Comments on: A Look Under the Hood At Carrot Trader http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html Frustrated or intrigued by email teasers from investment newsletters and advisers? We solve them and track their performance here ... so stick around, participate and subscribe (it's free)! Sat, 21 Nov 2009 04:01:25 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Loraine http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html/comment-page-1#comment-4703 Loraine Wed, 20 Aug 2008 15:59:24 +0000 http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html#comment-4703 thanks everyone who responded! That really helped thanks everyone who responded! That really helped

]]> By: Carrot Trader http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html/comment-page-1#comment-4698 Carrot Trader Wed, 20 Aug 2008 12:02:43 +0000 http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html#comment-4698 Thank you all so much for your contributions in answering these questions. Derek's definitions are correct with the exception of Carrot Trader's usage of "Close". Our Close simply refers to the end-of-day closing price for the stock. In the last example in the article above we show NM's close as $9.57. You can see this value printed on the right side of the chart. Thank you all so much for your contributions in answering these questions. Derek’s definitions are correct with the exception of Carrot Trader’s usage of “Close”. Our Close simply refers to the end-of-day closing price for the stock. In the last example in the article above we show NM’s close as $9.57. You can see this value printed on the right side of the chart.

]]> By: Craig http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html/comment-page-1#comment-4696 Craig Wed, 20 Aug 2008 04:44:40 +0000 http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html#comment-4696 Long - means you have a bullish outlook for the stock, you believe the price will rise, and you may have a long position, ie have bought the stock Short - means you have a bearish outlook for the stock, you believe the price will fall, and you may have a short position, ie you have sold the stock or have options to make money when the stock falls Long – means you have a bullish outlook for the stock, you believe the price will rise, and you may have a long position, ie have bought the stock
Short – means you have a bearish outlook for the stock, you believe the price will fall, and you may have a short position, ie you have sold the stock or have options to make money when the stock falls

]]> By: Derek Blain http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html/comment-page-1#comment-4694 Derek Blain Wed, 20 Aug 2008 04:05:52 +0000 http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html#comment-4694 Hi Loraine, Just to elaborate a little on what Raymond said. Entry and closing definitions are dead on, closing being the average price for all shares sold (or bought to cover) after the transaction has completed. I.e. I bought 1000 shares (long position) at 15.00/share, and sold 500 at 16.00 and the other 500 at 17.00/share. My average closing price is 16.50/share. There are a few types of "stops". One is a stop-loss. This means that I have decided beforehand exactly how much money I am willing to lose. This is the "stop" that is being referred to here - In position 1, the stop is 26.95, where you are going in to the position at 39.85/share. This means that if the price of the stock hits 26.95 or lower (on the possibility it's making a wide run down and jumps right over that price), you will sell your shares because you don't want to lose any more money. The only reason it says "initial stop" is because that is what you are inputting when you first take the position. The "stop" for part 2 of the first trade has moved up because Carrot uses, I am just guessing, a sort of sliding scale to judge risk based on its algorithms, and will tell you to raise or lower your stop-loss accordingly. Long and Short positions are very simple. Once you can wrap your head around them once you never have to think about it again. LONG - I have bought the shares, and in order to make money they have to go up in value, when I will sell them to another buyer for a higher price than I initially paid. i.e. entered LONG position at 15.00, stock rises up to 20.00/share in value and i sell them for 5.00/share profit. SHORT - I am "lending" the shares to someone else - meaning that I have pre-sold the shares. In order to make money the shares have to go down in value so that I can buy them back cheaper. i.e. I have short-sold the shares to someone for 20.00/share and the prices goes down to 15.00/share. I then buy the shares back (called buying to cover since you really don't actually own the shares) for 5.00 profit. Hopefully that makes sense. Raymond's definition of short fits into the LONG category, he's just thinking a short-TERM LONG position lol. Derek. Happy trading all! P.S. I have posted some picks on SocialPicks.com under the name Coreadrin_47 if anyone is interested in some technical and/or fundamental analysis on a few companies. Cheers! Hi Loraine,

Just to elaborate a little on what Raymond said. Entry and closing definitions are dead on, closing being the average price for all shares sold (or bought to cover) after the transaction has completed. I.e. I bought 1000 shares (long position) at 15.00/share, and sold 500 at 16.00 and the other 500 at 17.00/share. My average closing price is 16.50/share.

There are a few types of “stops”. One is a stop-loss. This means that I have decided beforehand exactly how much money I am willing to lose. This is the “stop” that is being referred to here – In position 1, the stop is 26.95, where you are going in to the position at 39.85/share. This means that if the price of the stock hits 26.95 or lower (on the possibility it’s making a wide run down and jumps right over that price), you will sell your shares because you don’t want to lose any more money.

The only reason it says “initial stop” is because that is what you are inputting when you first take the position. The “stop” for part 2 of the first trade has moved up because Carrot uses, I am just guessing, a sort of sliding scale to judge risk based on its algorithms, and will tell you to raise or lower your stop-loss accordingly.

Long and Short positions are very simple. Once you can wrap your head around them once you never have to think about it again.

LONG – I have bought the shares, and in order to make money they have to go up in value, when I will sell them to another buyer for a higher price than I initially paid. i.e. entered LONG position at 15.00, stock rises up to 20.00/share in value and i sell them for 5.00/share profit.

SHORT – I am “lending” the shares to someone else – meaning that I have pre-sold the shares. In order to make money the shares have to go down in value so that I can buy them back cheaper. i.e. I have short-sold the shares to someone for 20.00/share and the prices goes down to 15.00/share. I then buy the shares back (called buying to cover since you really don’t actually own the shares) for 5.00 profit.

Hopefully that makes sense. Raymond’s definition of short fits into the LONG category, he’s just thinking a short-TERM LONG position lol.

Derek.

Happy trading all! P.S. I have posted some picks on SocialPicks.com under the name Coreadrin_47 if anyone is interested in some technical and/or fundamental analysis on a few companies.

Cheers!

]]> By: Raymond Marine http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html/comment-page-1#comment-4693 Raymond Marine Wed, 20 Aug 2008 04:05:38 +0000 http://www.stockgumshoe.com/2008/08/a-look-under-the-hood-at-carrot-trader.html#comment-4693 Yes, that is "shorting" a stock and you are correct. You hope the price will FALL so you can make money. "you sell stock athat you do not own, hoping it will fall. Then you buy the stock at a lower price." However, I never believe in shorting a stock, as it is playing a gamble. To me, being Short on a stock is different that SHORTING a stock. Sorry for the confusion. Yes, that is “shorting” a stock and you are correct. You hope the price will FALL so you can make money. “you sell stock athat you do not own, hoping it will fall. Then you buy the stock at a lower price.” However, I never believe in shorting a stock, as it is playing a gamble. To me, being Short on a stock is different that SHORTING a stock.

Sorry for the confusion.

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