<short AB3 beloved holding?..offshore account.>LOL; ALL: PLEASE READ!
..... While I enjoy the humor in booray's post, it provides a good opportunity for this serious consideration:
I do not post much; however, I read most of the posts and compliment the sincerity and cohesiveness that makes this thread so special.
The wisest man I've ever had the privilege of knowing had a saying, "Tuition is expensive, and every day's a school day.." . None of us have a four-year scholarship to the "American Institute of Technology Trading" <g>}; but, through many years, some of us have learned costly and valuable lessons. Please don't pay dearly to learn them yourselves.
In this fluctuating market environment, you may be tempted to short some tech stocks -- particularly ones that have been hi-flyers. There is only one thing I {and thousands of others who have traded 10 years or longer} can advise, no matter how attractive, DON'T!!!
Shorting a tech stock, particularly an internet sub-sector stock, can easily result in financial ruin for you, your children and your grandchildren! Several very smart people have found-out the hard way.
If some of you need a true illustration before you will be convinced: Here is one of them: I don't have the exact figures in front of me; but this will be close:
At the end of 11/98, or the beginning of 12/98, some people I personally know shorted SEEK {Infoseek - bought-out in 11/99} @ 37 because it was at an all-time high and "couldn't go any higher." By the end of December, it was in the 50's. One particular person I know held his position { 25K shares } because he felt certain it would drop after the First. By January 11th-12th, SEEK was @ 81.
If any of you had shorted just 500 shares, it would have cost you $22,000.00 to cover. It cost the gentleman with the 25K shares $1,100,000.00 to cover.
There very likely will be more correction in the technology sector.
If most of you are largely in the predominate stocks discussed on this thread, you should be fine. Most important of all is DON'T PANIC and don't " Panic Sell." If you are in a very limited equity or cash position, trade in a margin account and you can't withstand much of a downturn, don't let your positions get sold-out by ignoring margin call notices. IMO, sell just enough while you can at a profit to give yourself some margin breathing room. Should it look like you are going to be forced to sell, when you get your first margin call notice, I hope Tim won't mind this, send Tim a PM marked "URGENT." He will forward it to one or more of us who have paid much "tuition" through the years, and have developed skills in successfully climbing out of a hole, or, if necessary, minimizing loss. We will be glad to try to help you.
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A good evening to all of you -- and good luck to us all.
Carol
{{AIA for the typos and grammatical transgressions. Being an old-fashioned purist, I am still using Classic. The "Edit" and "back" features are not working right now. It is likely just another part of the forced conversion conspiracy ..... :) }} |
