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Technology Stocks : NEXTEL

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To: freeus who wrote (3034)11/5/1997 2:56:00 AM
From: laleh  Read Replies (2) of 10227
 
Off Topic

Hi freeus, consider this:

1. When you short a stock the MOST you can make is the price at which you did it, e.g. if the stock price is say $12 you can only make $12 if the stock price drops to zero (an unlikely event). When you buy long your up potential can be 2x, 3 x etc.; stock price can go as high as it's earnings and investors valuation of it can take it.

2. MM have a habit of ssqueezing shorts out (by raising prices they psych the short sellers into covering).

3. Historically, in a bearish market such as we are in, people loose more money shorting stocks than buying long.

There are more reasons why I stay away from shorting stocks. I just wanted to point out few so you can consider if you want to try it out. I might post a little more on this later. It's bed time now.
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