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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (7731)	4/16/1998 2:21:00 AM
From: AlienTech	Respond to of 120523

DAYTRADER: Every now-and-then, even on the Internet, traders are forced to do a little leg work. What we are referring to in this particular case is finding shares of a stock to short. We received numerous feedbacks after posting the following update on the "In Play" page: (K-Tel International (KTEL) 20 11/16 -15/16: Stock has begun to tumble, now trading 19% below its intraday high. This stock has been a daytrader's dream: the longs had a chance to ride it up for triple-digit gains and now the shorts are able to make a few pennies. A feast for everyone involved). Most of the e-mail was related to traders not being able to find shares to borrow. To those individuals we say, "Look harder, they're out there." (this is not a recommendation to short the stock). We are simply saying that for a stock that is heavily in demand by short-sellers, sometimes you have to "call around" to find the shares. That is why it is necessary to have more than one brokerage account. Just because one firm doesn't have the shares available to loan, doesn't mean that there are none out there. And, if you trade stocks under $5, there is an even more compelling reason to have at least two brokerage accounts. Some firms simply will not allow you short a stock that trades under $4.125. Others will. Because some traders have only used one online broker, the may think that the rules are uniform. They are not. The only thing that is set in stone is that you can't short a stock on a downtick. But even if the stock you're looking to make a play against trades at $2, some firms will allow you to short it.