Guts and allocations, always leaving enough powder to keep hitting them if they double or triple.
Yesterday reminded me of Thanksgiving Friday, when turds flew with impunity. Anyone remember ADSP, that went from a few bucks to $57 that day last year, before crashing back down?
Fundy, I think you brought up one of the MOST important aspect of shorting.
Since this is "The Amateur Traders Corner", I suspect some more newbies like myself thinking about shorting stocks.
I think it is absolutely important that one must keep enough powder in case the stock goes up 10 folds in matter of days or a week.
Unlike you making a killing on ADSP, I barely escaped alive.
It was only for about 5 minutes or so but with horror I saw my account value going to "negative".
I still remember that sick feeling...
(My broker could have liquidate or cover all my positions, and if he did, I would be sitting with debts instead of assets in my account)
So new amateurs, good luck on shorting, but remember, in theory, the RISK is UNLIMTED. |
