Understanding Stocks

WANT TO MAKE MONEY FAST? TRY THESE TRADING STRATEGIES 85
share when it was introduced in 1999 to as low as $20 three years
later. Obviously, anyone who shorted the Qs made a small fortune.
If you aren’t comfortable trading the Qs, you can also try its
relatives, the SPY (S&P 500) or the DIA (Dow 30).
If you are a new short-term trader, the Qs are a fantastic way
of learning how to trade the NASDAQ long or short with a little
less risk. On most days, the Qs trade within a well-defined trading
range. If you are an investor who thinks the Qs hit bottom at
$20, you could buy shares for a long-term investment. In any of
these situations, be sure to use protective stop losses.
In the next chapter, you will learn how investors use fundamental
analysis to buy and sell stocks.