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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: kha vu who wrote (103827)6/23/2000 12:57:00 AM
From: Jenna  Read Replies (1) of 120523
 
RMBS is dangerous to short overnight. When you can't watch your position intraday in this stock its turning into lack of exercising proper risk tolerance, I don't care how much "experience" the trader thinks he has. The overnight short is more dangerous than the overnight long and even those are risky. I don't know why traders insist on shorting a powerhouse of a stock overnight unless its a 'safer' option position. I always trade Options on RMBS that way you can't lose more than 35 to 50% of the initial investment which is usually up to 5 or 6k.

I had that experience with CMRC but lost only 5k..and that stung. 56k is just being a tad too reckless. I'd rather make 5 or 10k instead of 50k.. than chance to lose 50k. I might buy 1 or 2 thousand shares of a short/long position intraday with proper stops, but how can you put stops into a potentially gapping stock?
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