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 : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Carl H. Gotsch who wrote (6081)	10/26/1997 12:17:00 AM
From: Roger A. Babb	Read Replies (1) \| Respond to of 9285

Carl, I also started shorting AND too early but stayed with it shorting more and am now out with a nice profit. I get into positions by first making a decision on the total number of shares I am willing to short and choosing my bottom target price. I start with only a fraction of the total. If it goes up, I check my logic and if still OK I will short again. But I stop at my pre-determined share limit no matter what. As a profit begins to develop in the position, I develop a cover plan that has price targets to cover with the final cover at my original target price. Many short sellers will bail out if a position goes against them and double up if it goes down. I never double up on the way down but do the opposite and cover some. If it goes up, it is a better short. If it goes down, it is no longer as good a short and I take some money off the table. If you double up on the way down you can be wiped out by a dead cat bounce even though your logic was right. I am in the market to make money safely over many years, not looking for a quick killing (or to be killed).

To: Carl H. Gotsch who wrote (6081)	10/26/1997 1:55:00 PM
From: R. Bond	Read Replies (2) \| Respond to of 9285

Carl, I don't mean to butt in, just want to suggest 2 books that you may very well find interesting in regards to strategy. They are both published as part on the "Investment Classics" series by Wiley. "Reminiscences of a Stock Operator" by Edwin Lefevre and "The Battle for Investment Survival" by Gerald M. Loeb. Both authors present the type of thinking that Roger uses so successfully (along with his excellent analyses) along with a great read. Very inspiring. Check it out. Cheers, Bond