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Technology Stocks : HAUP - Hauppauge Digital
HAUP 0.0139+34.5%Oct 21 2:34 PM EST

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To: DEER HUNTER who wrote (617)5/23/1999 5:39:00 PM
From: Keith Lenart  Read Replies (1) of 1149
 
DH, I understand completely. I used to play exclusively from the long side as well. But now I take a more balanced approach.

Anyway, I maximize my chances on the short side by either shorting stocks of scam companies, companies without earnings (or any prospects thereof), or companies that have gained too much too fast (my criteria 100+% in one day) without convincing justification for the increase (e.g., HAUP).

I don't ever get "stressed out" over a short that goes against me, since most such moves last less than a day or two. Shorting big gainers like this, I go into each play emotionally prepared to lose up to 50% of my investment. I like to short the gap up after the big gainer day and stay perfectly calm knowing that 85% of the time I'll come out on top with an average gain of 25%+ for my efforts.
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