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Strategies & Market Trends : Investing during a Bear Market -- Ignore unavailable to you. Want to Upgrade?

To: Vol who wrote (126)	11/11/1997 3:23:00 PM
From: Tommaso	Respond to of 226

Not answering for Joan, but I was studying the Weinstein book in Barnes and Noble on Sunday, and found his directions too complicated for me to be comfortable with. I guess one essential is to put in stop-loss cover buys not too far above your purchase price. As I have mentioned on this thread, the only uncovered shorting I've done is the index depository receipt for the S&P, symbol SPY. There you don't get the huge profits of a smart short, but also a lot less risk. I really do think that for shorting you can't beat the Prudent Bear Fund, BEARX, where you get a diversified portfolio of shorted stocks that the manager, Tice, has tried to select as especially vulnerable. There your risk is spread over 80-100 different stocks. The fund has done really well on every dip.

To: Vol who wrote (126)	11/11/1997 5:18:00 PM
From: Joan Osland Graffius	Read Replies (1) \| Respond to of 226

Volunteer, >>For those of us who have not read Weinstein's book, will you please give a few examples of low risk methods of shorting stocks? First of all I recommend you get his book. I have seen it in paper back. Here is a short list of some of his don'ts, but there is more to this: Don't sell sort because the P/E is too high, Don't sell short because the stock has run up too much, Don't sell short a sucker stock that everyone else agrees must crash, Don't sell short a stock that trades thinly, Don't sell short a Stage 2 stock, Don't sell short a stock in a strong group, Don't sell short without protecting yourself with a buy-stop order. You need to understand his "stage 1, 2, 3, 4" definitions. Well worth the investment IMO. Joan