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Technology Stocks : DELL CLIMAX SITE
DELL 162.01+0.6%Oct 31 9:30 AM EDT
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To: James Berg who wrote (125)8/1/1997 12:41:00 PM
From: Markus   of 158
 
The Benefits of shorting is that time is on your Side ??%$&%&%
Hi James Berg,

I agree with your point that if correction comes, DELL may get hit
to as much as 20% to 30%. I am Long on DELL and praying everyday that
it will go up.

however, I must disagree with you on the second part of your post,
that say, "...one of the benefits of shorting is that time is on
your side as long as shares are freely available to borrow."

I truly believe that time is on the side of people who are taking long
position.
Because, management is working everyday to make the company better.
The fed is trying to make the economy moving without the danger of
uncontrolled inflation.

If a stock goes down the long can just ride it away and wait for the storm to past the maximum risk that long can get is the total amount of his or her investment, that is if the company goes bankrupt. In other words the risk is limited, while the sky is the limit as to the potential profit for long position.

But for the people who are short, they cannot indefinitely ride their
position, because they have to put more money as the stock that he or she short goes up. In effect the potential profit for short is limited with unlimited potential loss. Also is it possible to hold a short position for 18 months to get your capital gain tax?

Bye.
Good Luck on your Trade.
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