Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Yamakita who wrote (3985)	1/29/2002 9:45:06 AM
From: Keith Monahan	Respond to of 24758

The most you can gain by shorting any common stock is the amount you originally bet. If you sell short 100 shares of GX at $60, you're in for $6k. Not to beat a dead horse, but I will anyway. The flip side of your above example is going long 20,000 at 30 cents (still a $6,000 investment), and hold to $60, your investment is worth $1,200,000. I like to think in total dollars cause thats what pays da bills. Given a choice between a great long opportunity or a great short, I will always take the long.

To: Yamakita who wrote (3985)	1/29/2002 9:46:37 AM
From: Ahda	Respond to of 24758

What you are stating is true. The numerous methods of stating it have been written here it is a simple how to interpret which equals creative trading that unfortunately has crossed over into audit practices. In shorting there is the end result of Zero and a maximum return where as in buying a stock price does not have a built in limit if the product has a long range spectrum. You can create greater income if you can buy a put on the stock that you feel has no potential. Gees if you call it completely right you can figure out exactly what your return will be in each and every instance. Shorting has been on my mind in other areas. AG cannot go below Zero and he must allow himself some room there of it would be very unwise for him to lower the rates again.