Reza, even if you whole heartedly believe this issue will go up, you should learn to preserve capital as the issue is declining.
First off, it's not a sin to short a stock you already own. I do it regularly to protect my position. Buying shares when it bottoms, averages the cost of your shares, if it's a long term investment. If your "trading" it, then selling the issue immediately (on a stop preferrably) followed by a short would secure losses incurred. Now, each issue develops tendancies. ZE won't open up much higher than it closed today. In fact, it will probably open lower at first. The market maker will probably push the price back up. Then and after that upward move ends, short it if you want. The close is becoming lower each day. Fundamentally, it is trying to find a support level. The momentum down on this one is still going. If you short at 14 1/4, you should cover at or around 12 3/4. Thirteen may be the support though.
I hope this helps. It's a technique I use and it has saved me a bit! Remember, it may be too late with this issue. It has fallen a long way.
Rich Marracino |
