The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Patricia Trinchero who wrote (174819)	1/2/2009 3:03:51 PM
From: John Koligman	Read Replies (1) of 306849

Also, in addition to what James wrote to you, the 'potential' loss in a short position is 'theoretically' unlimited if you continue to be able to put up margin and the stock continues to rise. As far as gain, the issue you shorted can at best go to zero, so that is your max gain. Best regards, John PS - Shorting can be a dangerous game, many experienced investors shorted the internet stocks during that craze, with good reason based on their insane valuations. However, these stocks in many cases continued to rise for no rational reason, burning many shorts who could not hold on until they crashed in 2001... The converse was true in the second half of 2008, where many issues could almost be 'shorted at will'...

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