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To: Arnie Doolittle who wrote (3109)11/12/1997 9:49:00 AM
From: Al Gutkin  Respond to of 10227
 
Arnie: The psychological effect of short forces the transaction close.

What I mean by this, is, when you sell first, there is a psychological effect that forces you to close the contract sooner than if you buy long. If you close soon enough you don't have to ante up the money. When you buy long, and the stock goes the opposite way, the psychological effect is to pay for the stock and hold.

Don't forget my reasoning is emotional and psychological and may defy some logic. In market trading I allow myself to be this way. This therapy is less expensive than a trip to Las Vegas.

Smiling Al