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Technology Stocks : America On-Line: will it survive ...?

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To: James F. Hopkins who wrote (4908)9/25/1997 10:44:00 AM
From: Tim Kenney   of 13594
 
Jim, I don't think you should speak unless you are sure what you are talking about. I have shorted for years, right through stock doubles and triples, and have never had what you describe happen to me. When a short moves against you, you have to bring in money to cover the losses. Only if you are unwilling or unable to bring in the money, will the broker close out your short. This is what I constantly refer to as "overexposure" to a short position. If a person can not bear a large up movement in a hype driven stock, they should not be shorting it, or should have shorted less of it. The use of buy stops just feeds into the hands of momentum investors. In a battle of muscle, the momentum investors will always win because they have more money at their disposal than the short community.
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