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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: John Trader who wrote (42272)	2/15/2001 9:11:16 PM
From: advocatedevil	Read Replies (1) \| Respond to of 70976

John, I started to respond with an answer to your question about taxes and short selling, but quickly realized I'm not the best person to be providing an explanation. I really don't concern myself with taxes when it comes to short-term trading other than to simply assume I'm going to get hit at a high rate (and I'm seldom wrong there). I do know that calculating taxes can be confusing if you have a combination of positions in the same security. As for after hours trading, yes, I sometimes trade in extended hours. I have friends who claim to have made great trades by throwing out low bids and high asks and waiting for someone to bite, but that's not for me. AdvocateDevil

To: John Trader who wrote (42272)	2/15/2001 9:54:28 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 70976

re: shorting: 1. your potential loss is limited, if you decide on a stop-loss price when you initiate the short. The hard part is sticking to that decision, no matter what. 2. a short trade is reported just like a long trade: a sale (when you initiated the short), and a purchase (when you cover). The sale date, of course, is before the purchase date, which is the only thing that makes it different from a "long" trade. The only complication is if you also hold offsetting long positions (or "substantialy similar" equities, like LEAPs). 3. using puts or shorts as a hedge against long positions, to reduce market or sector risk, is a completely different game than what I'm doing. I'm betting the stock will stay within its 40-50 range, and I'll get a chance to cover at the low end of that range.