mishedlo,
Why would you laugh at someone for doubling or tripling their money in two days? Doesn't that depend on how much they risked vs how much you risked?
If you shorted $100,000 worth of ENE at 80, 70, 60, etc, and you covered at < $1, then you pocket almost the entire $100,000, but you originally had to tie-up the margin requirements (and buying power) to keep your short. Also, you'd have to pay interest on the borrowed shares. Admittedly, your margin requirements became almost nothing toward the end, but to have held Enron short for a year, would have cost you a little something. So you turned $30,000 (your margin and interest over the year) into $130,000 over the period of a year.
Had the person you're laughing at bought $30,000 worth of ENE last Friday (three trading days ago) and sold today, he/she would have made $60,000 in three days, without using any margin.
That doesn't seem to laughable by comparison. |
