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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (12617)	9/20/2002 12:40:52 PM
From: The Vet	Read Replies (1) \| Respond to of 16631

You have to admire that kind of risk-taking, Dave don't ever forget the advantage that shorts have in a bear market. They have the money and they haven't delivered anything. Going short for the professionals is an almost interest free loan, with very small risk. The commonly spoken myth that the shorts face "unlimited risk" is just a myth. It's true for retail shorts who must maintain margin and can be called to cover at very inconvenient times, but the professionals have no need to maintain margin and are never forced to cover. Just think a little about it. With every short sale your cash is being transferred into the shorts pocket. As the result of that transaction you are weaker, and he is stronger, and he can continue soaking up all the longs money until he has it all; all you have a portfolio of valueless stocks most of which are not even real.