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To: At_The_Ask who wrote (96559)	4/19/2001 7:15:06 PM
From: patron_anejo_por_favor	Respond to of 436258

<<Just as dip buying on the way down was a good way to get killed I think trying to short the exact top of this rally could also be clownish and expensive.>> I agree. A few deep OOTM crash puts never hurts anyone too badly, though, especially if the bulk of your trading short term is going the other way (long) and as long as the overall position size is less than 2% or so of investable capital at any one time. One big hazard of bear markets generally is overtrading, and overcommittment of capital, the risk: reward ratio is too high especially at points where a trend change is possible or likely. If you're only comfortable staying short, its best to wait for things to roll over (as Allan has put it, "bite out the middle of the move"). I'll never be critical of anyone holding "too much" cash in a market like this. It's about capital preservation first and foremost.