HSX Forum

Playing & Trading Strategy

I'd like to surmise a bit about reset trading, if I may...

Posted by: accountant_4_Jesus (a.k.a ) on Sep 15, 00:46

Quite often what happens with reset trading (from what I have observed from reset trading myself) is that the end result of reset trading is that the stock price generally goes down more than it goes up, thereby making the stocks cheaper to own, and therefore more profitable to reset trade with.

Also related to that fact is that long-term stocks, such as ones with a definite release date that haven't climbed too far upwards in $ value, sometimes get stuck in the reset trading "rut" and don't actually grow much for a few months while people are busy having fun riding them up and down each day, thereby making the potential adjusts in future more profitable as well.

My conclusion about reset trading is that it is actually a good thing on a whole for the exchange, because it makes stocks exponentially more profitable, because you can have heaps of short-term gains from reset trading, and then a potential big adjust when the movie is released.

Please note, this is just my opinion on what I have observed.





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