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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (13123)	3/15/2001 7:58:03 PM
From: Chris J. Horne	Respond to of 42834

re: "shorting is extremely risky" This is very true. If you buy a stock or a fund, you cannot loose more than you invest. For example, if you buy 100 shares at $20, the most you can loose is $2,000. However, if you short a stock, your losses are not limited. If you short a stock at $20, and it goes to $100 before you cover, you just lost $8,000. Limits won't always offer protection. Stocks can blow right past these limits. For example, if a stock is being acquired by another company. If you are an amateur, don't try this at home.