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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (47300)	12/5/1999 3:02:00 AM
From: Cheeky Kid	Read Replies (1) \| Respond to of 122088

Even though I don't agree with your tactics, this was a good informative post.

To: Anthony@Pacific who wrote (47300)	12/5/1999 11:05:00 AM
From: HairBall	Read Replies (4) \| Respond to of 122088

Anthony: It makes no difference, if you are long at 1 and sell at 10, or if you short at 10 and cover at 1, although percent wise,, one is 900% and the other down is a 90% gain.... I think your math is a little off! Let's say you have 20K allocated for a trade in stock ABC. If you buy $20K at $1 you get 20K shares and if you sell those 20K shares at 10 you now have $200K before commissions and taxes. Now if you short $20K at $10 dollars you get 2K shares and you cover those 2K shares at 1 you now have $38K before commissions and taxes. Trading long is by far more profitable when done correctly and has a limited risk. Don't get me wrong I short as well. But I make more money going long. The most one can hope to do going short is to get close to doubling their money. In today's mania going long in the right stock, in a timely manner, has been the most profitable. Of course in these run ups of these manic momentum stocks someone always gets left holding, but that is true for short positions as well as the longs. Both shorters and longs need someone to be left holding in order to make a profit. That is the nature of the market. Of course longs would argue that if the stock keeps going up, no one gets hurt. No stock just keeps going up if its fundamentals are lousy. Eventually, someone will be left holding a loosing hand. Regards, LG