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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: donjuan_demarco who wrote (65111)12/27/2000 2:39:27 AM
From: Ray Rueb  Read Replies (2) of 122087
 
Next time, don't "buy to cover", simply "box" the position

If you're in a short that you know will eventually death spiral, don't "buy to cover" when you're expecting a short term up swing. Simply put in a buy order and "box" your position, having the same number of shares long and short. This neutral position ties up capital, but let's you ride out an up swing without "losing" money.

When you're ready to go short again, simply sell the long position and retain your short. This allows you to "make" the same money over and over again on each upswing.

But really, are you that good on timing your trades? I recently boxed a short 2 days before the stock dropped 30% overnight. I hate when that happens.

You all be careful out there
Ray
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