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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (39918)	11/4/2010 2:03:25 PM
From: Paul Senior	Respond to of 78747

I've never really done well shorting. And it's only been with specific stocks; I don't know anything about the VIX. It's only been rare when I've shorted stocks, and even though I've considered the specific business risk, I've been tripped up sometimes by exogenous variables (A surprising takeover attempt, for example.) Further, when I have been right, the monies involved are so small, it makes the whole process not worthwhile. And as you say, it's always a short-term capital gain when there is a gain. I suppose I could buy puts, but then I have time against me. I just keep a short-list for my observation and to see how things might have worked out, had I actually shorted.

To: Madharry who wrote (39918)	11/4/2010 2:14:33 PM
From: Paul Senior	Respond to of 78747

No, not concerned that these stocks are dropping while it seems that the whole market is rising. Because there are news reports about companies which provide a reason why the stocks may be dropping. I'd only be concerned if I saw a stock dropping multiple points on an such a strong up day like today if I couldn't find a reason to attribute to their fall. I'm concerned about these particular stock drops of course - whether they're temporary, justified, the start of a decline, etc. Not in relation to the market though.