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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: Stock Farmer who wrote (54084)7/19/2001 9:47:21 AM
From: GVTucker  Read Replies (2) | Respond to of 77400
 
Actually, John, the short side is very different than the long side.

With a long purchase, as long as you're right in the long run, you can wait. The market does indeed go up in the long run (sometimes it is the very long run, but you get my drift), and with eventually positive fundamentals (if you're right on the stock) the only thing that you might lose out on is opportunity cost.

On the short side, timing is much more essential. Stocks can be overvalued, then way overvalued, then absurdly overvalued. Being right in the long run can become irrelevant as you bleed to death. In addition, as long as your short sale candidate isn't targeted for bankruptcy, you might also lose money as a rising market offsets lower fundamentals.



To: Stock Farmer who wrote (54084)7/19/2001 12:23:01 PM
From: bambs  Respond to of 77400
 
agreed john....stocks like csco and nt now grind down...the short side takes a lot of time for a small gain...some b.s. news release or garbage upgrade by a dead fish analyst can pop these pigs at any time. holding over night short even garbage like nt and csco doesn't present good risk to reward. at the same time...going long garbage like csco is just gambling that a squeeze will come.

trading is tough now...no doubt about it....every now and again i am getting wacked both long and short. the scalping is brutal on must stocks now a days....I am picking my entry's very carefully and mainly swing trading value stocks.

eyeing the oil sector now...as well as golds of coarse. grabbed some mrk the other day...i was pleased with that. i barely touch tech now.

good luck,

bambs