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Strategies & Market Trends : Trader J's Inner Circle
NVDA 178.94-0.9%Nov 21 3:59 PM EST

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To: JEB who wrote (3)11/1/1998 1:09:00 AM
From: Trader J  Read Replies (2) of 56535
 
Thanks JEB.

For all of you that don't know JEB, he is a frequent poster on the TokyoMex board. He is knowledgable and his trades, and past performance speak for themselves.

For those of you unfamiliar with shorting, it is the practice of essentially betting (and I hesitate to use that term) that a stock is going to fall rather than rise. This tactic is most often successful after a stock has had an aggressive runup on rumor or expectation, more simply put, a stock that has gotten ahead of itself. The old addage applies, "Buy on rumor, sell on the news".

Be very careful about shorting stocks whose values appear to make them strong short candidates; Most big name internet plays are in this group. They have a fierce following in today's markets and as JEB states, set very tight stops so that you are not stuck with a run away issue.

Today's market is very different from even 5-10 years ago in that no longer does pure valuation carry the bulk of the load.

Thanks JEB.

Jeff
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