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Technology Stocks : ACLY- ACCELR8. Year 2000 Stock -- Ignore unavailable to you. Want to Upgrade?

To: 45bday who wrote (1091)	2/17/1998 1:10:00 PM
From: Mr Logic	Read Replies (1) \| Respond to of 1518

>>Any advice for someone who wants to start shorting, but always comes up tentative?<< My advice would be just try it and see how you feel... short a few $ worth and you might be surprised how it feels. Suddenly you are not worried that the stock won't go up - and all of the concerns you had when long become reasons you expect it to go down. I have relatively recently started shorting more than just the odd stock and I can tell you it feels a lot more comfortable in this overblown market. I would also recommend that you set limits to cover if the short goes against you and do not ignore them. There are many more overpriced than underpriced stocks out there. IMO this is one of the worst and I think I have explained why. Oh, and since you asked, "you're a weenie". P.

To: 45bday who wrote (1091)	2/17/1998 2:16:00 PM
From: CalculatedRisk	Read Replies (5) \| Respond to of 1518

Solution, congratulations on your nice profit! There are many strategies for shorting (and buying long) and I can only explain my approach. But you may want to participate on Roger's thread: exchange2000.com There are many knowledgeable posters that follows Roger's thread ... but they are not always right! I agree with the "start small" advice offered by Patrick. However, I disagree with his advice on setting limits. My approach (long or short) is to try and determine the valuation of a company based on future fundamentals. This takes some serious work and unfortunately I end up discarding most stocks - since they are priced closely with my estimates. When I find a stock that is significantly over or under priced, I really go to work (like ACLY). Once I understand the future fundamentals, I buy or short the stock, with the intention of holding for at least a couple of years (I am not a trader). If the stock moves against me, but the future prospects do not change, I might add to my position. I would never close a position (as Patrick suggests) solely on the basis of a price move against me! If I liked buying AMAT at 30, why not add a little at 25? If the fundamentals change, I might close the position. I'm always willing to change my mind. Caveat: I don't "average down" to lower my price ... I only add to the position because the fundamentals say BUY (or short). I have also set diversification guidelines for my portfolio. Shorting is a good exercise if you are careful. I use it as a source of funds for my long positions! As an example, if you shorted 1000 shares of ACLY on Jan 1st ... you would have an additional $27K in your account to invest. (Only short with brokers that pay you interest and allow you to invest the proceeds in marginable securities!) If the stock does not move, this is an interest free loan. Even if it goes up ... that is OK, as long as the proceeds are invested in securities that go up more. You are still ahead! I hope this helps. Regards, Bill P.S. I still surf, hike and climb the occasional mountain. You are never too old!