V., thanks for being concerned. In keeping with my personal trading rules, I don't trade things or instruments I do not fully understand or am comfortable with. I stick to stocks, long or short, that's it. I don't like the leverage options (calls or puts) allow. Too much exposure for my comfort.
I am aware of the infinite downside to shorting. But, I've been in this long enough not to fall in love with a position. Like Kenny sang, "you gotta know when to fold them....." The point of me using shorting techniques when required is not to bet against the market - that is foolish regardless. Shorting allows me take advantage of downturns. If I could have shorted GNET during the slide from 199 to 90, or just after the split, I would have. Schwab wouldn't let me and that is why I'm will be changing broker soon.
Now is not the time to short GNET. I know that. There will be times when it will be lucrative to do so in the short term. You may wish to forego this option - that is your choice. The market has gone up steadily since the early 80's. That's great but can anyone be sure that treand is infinite? I for one believe someday the market will turn and I want to be able to have the experience to make money then as well.
Lastly, shorting is not simple. It requires a lot of attention these days. Why you ask? Simply because we are still in a bull market. Obviously you have to watch you position like a hawk. If you don't, you can get creamed in an instant. I know that too. In the end, my recommendation is that investors learn to make money whether the market goes up or down. Long will not always be the way to go.
Regards,
Dany
PS: I'm not what you might call an avid shopper, I have therefore not gone out of my way to find bullfrog sunscreen. It seems the other one I found is acceptable. But, the lakes are calling and so is Florida soon, so I might be on the prowl once more. I'll keep you posted :-) |
