>>I have no worries about your trading abilities. My concern is with people who are new to investing and confuse short term trading with longer term investing. Developing an understanding of risk and time horizon takes time.<<
well, Dave, let me see if I can help by doing up a "warning list" for any newbies reading the thread:
1. Shorting is a very risky activity. It is speculating, not investing.
2. Don't do it unless you can afford to lose a lot of money.
3. It is not as easy as it looks.
4. You must first read many books on investing and technical analysis.
5. You must know how to use charting indicators.
6. You must be very familiar with the fundamentals of the industry and the stock that you wish to short.
7. You must do mock runs without using real money first, and see how
you fare.
8. Develop your personal sensibility and familarity on the short candidates.
9 Short when fundamentals, technicals, and your sensibility are in
sync.
11.Use buy-stops, and set profit targets.
12.Monitor closely, and get out when the stock gathers strength.
13.After all of the above, you can still lose money.
14. When you do, don't blame anyone. Not even yourself. Dust your pain away, find out what went wrong, and try again. Or give the game up.
How's this Dave? Feel free to add/delete/modify above points.
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