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Technology Stocks : Data Broadcasting Corp. (DBCC)

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To: Sharon L. who wrote (3305)1/13/1999 7:06:00 PM
From: RockyBalboa  Read Replies (1) of 5102
 
You can short sheer everything including Deutsche, Russian and Brazil stocks. Sure you must borrow the stock from someone else and sell it.
If the lender wants you to give back the stock, and you can't borrow it from someone else you have to buy, maybe a price you usually won't buy the stock. If many people have to do the same, that mess is called "short squeeze" and can get nasty.

Shorting is not easy and can cost you your head, if you do it ill-timed. Do it for example in "MZON" on the wrong day, at 8, then you are screwed up when the stock went to 59 from 8 in 6 hours on the next day.
Or, when you shorted AMZN or YHOO all the year back, you are in deep trouble, too.
You can lose much more equity than you originally have when shorting stocks.

Short only when there is a really good reason why a stock must be heading lower - MUCH lower.

Also, the earnings are lower, realistically you can make 30%-50% in a trading short (If for example one sold off DBCC at 44 and covered at 30 today this was a 30% gain).

But you can make 500% going long (DBCC from 7 to 42).

C.
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