DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Eric P who wrote (8052)	4/27/2000 7:51:00 PM
From: Dave O.	Read Replies (1) of 18137

< Finally, you short the stock when it reaches the unbelievable price of $200 per share ... the irrational purchases of droves of market idiots cause the stock to go still higher. By the time the stock reaches $300, you scream "UNCLE" and bail out of you short position at a huge loss. > Eric, Although I know you're just using an example above with MSTR, that is the kind of play that could wipe a trader out. But ... if one shorts a stock like MSTR intra-day there was money to be made. I like to watch incredibly overextended stocks and when they seem to hesitate after a big runup intra-day, then is the time to jump on them. Just looking back at some trades ... I shorted MSTR at 75 on 10/6 last year. In January I shorted again at 230 and at 254. All these trades were profitable and all closed out by the end of the day. Obviously I didn't make the big kill by nailing it at the top and watching it tank (brought on by restatement on past numbers). But if one shorted at 200 and sat there until 300 they'd have only themselves to blame ... a trader who lets something move 50% against them won't make it long term. It was just too volatile of a stock to take home overnight. Dave

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