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Strategies & Market Trends : Shorting stocks: High fliers

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To: Ken Brown who wrote (455)3/23/1998 8:05:00 AM
From: Anaxagoras  Read Replies (1) of 709
 
You realize that you now just cursed me with a bad conscience when it plummets 20 pts today.... ;-)

I got the crap beaten out of me with my earlier short of YHOO and I learned, I mean really learned, two things I already "knew" before. When shorting a high flyer, either 1) make sure you don't overweight the short, use a small starting position, and be very well diversified if you plan to ride out the possible continuation of insanity, or 2) use stops with the strictest, unquestioning discipline.

I mean, I really learned this with YHOO.

Anaxagoras

PS- Did I happen to mention that even though I already understood these principles, they really made an impact after shorting YHOO last year?
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