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

To: ted birnbaum who wrote (7497)	11/24/1997 9:22:00 PM
From: Craig Richards	Respond to of 9285

in general if you short against the momentum be prepared to stick to your guns if a stock is not worth the money in time your play will work out. Although this is one strategy, it can be unnerving, especially for someone new to shorting. There are other strategies for dealing with shorting momentum stocks. One of them is to set an upper limit to your loss, and if your loss goes above this limit, then close your position. You may or may not decide to re-enter the position at a higher price. I think it's very important for people to use strategies that let them sleep well at night. There are times that I'm uncomfortable with a position that has gone against me, and when I close these positions I feel a lot better. I have found that closing a position, even at a loss, allows me to take a step back, so I am better able to evaluate if I really want to be short the stock or not. Craig