Stock Trading Strategies Pair Strategy

[jetpilot123jkh]

Making 12% on Apple, and 7% on RIM does not yield 19%.  It yields (12%+7%)/2 = 9.5%, as long as you invested the same amount in each position.

[StockTradingMaster]

@jetpilot123jkh Seriously man, you're that stupid? If you go long one, and you short the other, and your long goes up while your short goes down at the same time then you make 19%. You got 2 f*cking different positions, one you made 12% in, and the other you made 7% in. You don't f*cking divide it by 2. You're banned from my channel just because you're so stupid.

[StockTradingMaster]

Thumbs up for the effort you put in to produce this video

[thobbit60]

The trick is to pick the right stocks to go long and short in the same sector, right? I am nervous about picking the wrong stocks for each position and having double the disaster.

[StockTradingMaster]

@thobbit60 Correct so you pick a strong stock to go long in the sector near the top in terms of YTD performace with good earnings growth, and a weak stock to short in the sector near the bottom that has missed earnings expectations and is in serious trouble.

[Tadek59]

The excellent and interesting video !