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

To: steve h who wrote (61979)	11/5/2000 8:35:55 PM
From: Das Boot	Read Replies (1) \| Respond to of 122087

Hi Steve, I agree with averaging short positions up in theory... But understand that unlike "averaging down" in long positions, it takes increasingly more money to maintain and "average up" a short position. Last fall I was short a number of good-for-nothing microcap techs. When they started running up in Nov and Dec and Jan, I averaged up... Then a funny thing happened...they ACCELERATED UP..UP..UP.. until many were 10 times my initial shorting price. I couldn't keep going, my funds were rapidly dwindling, so I had to cover all at a whopping 75% loss. So, even though I still agree in theory with averaging up, I now set strict upside stops at 20% loss. Even though I know I'm ultimately right and the price will eventually tank, I also know that my pockets aren't nearly deep enough to see it happen. Aufwiedersehen, Das