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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Mary Baker who wrote (31642)	9/27/1999 2:34:00 PM
From: freeus	Read Replies (2) \| Respond to of 41369

Dear Mary: A lesson in how not to short. Here's what happened. I was long AOL 1000 shares for well over a year. I gave up and sold 200 at 104 a few weeks ago. I shorted at 89 1/2 (500 shares) and bought them back at 86 1/2. Made a small profit. Then I reshorted (and sold 500 more) at 90 1/2: it immediately went to 87 where I intended to cover. But it was the end of the day and I had a lot to do so I figured I'd cover first thing in themorning. In the morning (Fri) AOL had risen to 91 before it opened, on the msn rate increase news. I didnt know what to do. Watching the market and how it was reacting I SHOULD have covered the short at a small loss and bought the 500 shares back for a one day gain as it was obvious Wall St liked the news...but I did nothing. This morning at more good news (upgrades) I freaked out and covered at 102 at a huge (for me) loss of $7000, then reshorted just 100 shares at 101, probably should reshort the others too as I expect a major correction...of course I've been expecting it since Sept 15 so we shall see. The right thing to have done would have been to cover on that first day and not leave it overnight. The other right thing would have been to not freak out this morning. Best wishes, Freeus