Shorting stocks: High fliers Message Board

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Strategies & Market Trends : Shorting stocks: High fliers

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To: Mark Marcellus who wrote (652)	3/4/1999 10:36:00 PM
From: Bob Rudd	of 709

Mark: Consider shorting at a size where you wouldn't be uncomfortable if it went against you...you would just add to the position, average up rather than average down. The key to such an approach is imagine and plan for large adverse price excursion. The disadvantage, of course, is that if you're right, you won't have as big a bite of the apple as you would like to have had...but it can still be a lot of fun. I used this approach with a nervous short on Amazon, but as it turned out I nailed the top [so far] and closed the position 10 days later with 68 point gain. I don't regret having gone in skinny though, because there's just no way to know how far these things can go against you. The big ugly is where you're overextended and have to cover so your buying ends up making the top. Good look on your fly fishing, Bob

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