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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (8158)	5/1/2000 2:01:00 AM
From: brec	Respond to of 18137

... saying that the change in risk is positive if a short moves against you carries with it the corollary, based on a symmetric argument, that the change in risk is negative if a long moves against you. Yes. Those two factors combined lead to the inescapable conclusion that shorts are more risky than a longs No, the premises alone do not support that conclusion. There is yet more symmetry: as short positions become profitable their risk decreases, and as longs become profitable their risk increases. The four premises about the signs of the change in risk do not support an ordering of the absolute levels of risk of shorts vs. longs. (We're getting really far afield here. I'm willing to undertake further discussion by PM but I'll cease and desist here on the thread.)