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

To: kimberley who wrote (4326)	1/13/1998 2:26:00 PM
From: Dale Baker	Read Replies (1) \| Respond to of 6855

Most short targets are high-flying companies with bad fundamentals but lots of momentum. So you are fighting that momentum in the belief that the price will catch up to reality eventually. My only advice is, when you short a stock, decide from the start if you will cash out with a small loss (5-20%), which can easily happen with a momentum stock, or ride it out regardless. An example: CDRD, which I shorted at 15 last June and rode to 25. Shorted more at 23 and covered today at 13 with a stop order which I was moving down as the stock went down. I was $3K down and ended up more than $3K ahead. Not bad for a small investor. CMOS, on the other hand, I mistakenly shorted at 24 1/4 and had a stop-loss cover at 26 today. Don't start shorting unless you are willing to follow a stock closely. On the other hand, it can be very profitable in a down market if you know what you are doing. Good luck.