Daytrading Canadian stocks in Realtime Message Board

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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime

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To: Graham Hickey who wrote (17646)	6/24/1999 5:18:00 PM
From: WhatsUpWithThat	Read Replies (2) of 62347

Shorting can be verrrrry risky I see this so often. People accept it as a truism, yet if one uses stop losses I fail to see how shorting is riskier than the opposite. You often see people say "Losses are constrained for longs because the stock can only go to zero, you can only lose everything you invested, but for shorts the losses are potentially unending because the stock could just keep going up, and up, and up." Any smart investor cuts losses, and if they're very smart, cuts them early. Sure, you could get caught by a buy-out with a 50% premium, but does that realistically happen more often than a 50% drop on earnings or some other news? And if it is more often, is it really a significant risk, considering how infrequently it does happen? Just trying to learn more.... WUWT

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