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

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To: TraderXx who wrote (55170)8/10/1999 1:27:00 AM
From: Scrumpy  Read Replies (1) of 120523
 
The risks of shorting are inherently higher and theoretically unlimited. Perhaps this explains much of the hyperbole, rogue outbursts and "I'm vindicated" mentalities that pepper short threads when they're offered an opportunity to cover. And, deservedly so, especially if one had the misfortune of shorting the OEX three years ago.

Unlike Anthony, many others who stumble across some good shorts suddenly embrace the practice with a vindictive, personal spirit, e.g. "absurd valuations" (as if to suggest P/E is now suddenly all important and their "DD" requires the company stock price to drop). Anthony and many others view it as another day at work, which is great if they can consistently reap profits from the practice.

But what would be the natural end-result if all companies were shorted, and every short theoretically succeeded? Why, you'd have a market full of zero-valued companies! Not exactly a booming economy with jobs to offer, that's for sure. This is why it fails long term, and the market over the past century has continued to move upwards.

TraderXx, I admit there are opportunities to seize on the way down...but most prefer to short when the *overall* market moves down, not to "kill" companies for "this or that" reason.
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