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: Bill Wexler who wrote (8217)	12/12/1997 4:32:00 AM
From: Pancho Villa	Respond to of 9285

Bill>>watching the stock fly back up on a squeeze or some hype and then kicking yourself for not covering and reshorting.<< I my be mistaken but IMO the best way to play stocks with broken fundamentals is to do it Asensio's style. You see the big [negative] picture for the stock and then "short and hold", and wait while you see the story unfold [this is who Asensio does it, he doesn't trade much]. Of course you will not get 100% success but [if you are good] the successes should more than make up for the misses. It would be very easy to make a zillion dollars if we new random prices movements in advance and could trade in and out these puppies on a daily basis. Shorting high flyers, YHOO AOL, IMO is a bit different. However, you still need to keep at least a medium term view. IMO any one who shorts with a time frame of days or even weeks will not do as well as someone with a more flexible time horizon. It is precisely this flexibility that makes shorting the stock more attractive to me vis-a-vis playing options. If the investor is not planning to take advantage of this flexibility due to his/her anxious ways, then IMO he/she should not be shorting the stock but playing options. Now with high flyers I never as well as with broken stocks. I usually sell short before momentum dies, and even though I have never covered at a lost [not even INTC or WLA!] once I get back into positive territory I get scared to give the profit away and usually cover way too soon. Pancho PS: I am not quite sure this post does anything beyond venting my frustrations. IMO I may be a bit more patient than the average shorter at SI. This may be a result of using shorting as a hedge (i.e, backed by long positions. I never short naked. i.e. back up the shorts with just cash as this is going against the current - i.e., the market's 10%/year annual rate of increase)