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 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: put2rich who wrote (11070)	7/7/1998 1:49:00 AM
From: Tai Jin	Respond to of 18691

If you are short on funds (hopefully, you won't get a margin call) then I think you are better off covering on any pullback and shorting again once it's clearly in a downtrend. I've always hesitated covering because I think that if I do the stock will suddenly turn around. In my experience this rarely happens and I've been much better off covering and waiting for the eventual fall. Don't try to outsmart the market, because you can't. And another painful lesson I've learned is that you must be patient before entering a short position. There's no reason to short a stock on the way up. That's called entering a losing position from the very beginning. Just be patient and wait for the stock to show clear signs of weakness and the beginnings of a downtrend. That's the smart way to short. ...tai

To: put2rich who wrote (11070)	7/7/1998 2:00:00 AM
From: Steve Patterson	Respond to of 18691

Shorting AMZN, YHOO, or any other stock that is still rocketing upwards is like feeding a mint to Mr. Creosote and hoping he blows up. Maybe you're lucky, but more probably you've lost a mint. Not that I think these stocks aren't absurdly overvalued, but the first rule of market bubbles (as I understand it) is that they always last longer than everyone thinks they can. The second rule is that they pop all at once (not in piddly little 5-10% corrections in a day), and they do so based on some bit of bad news that is generally impossible to anticipate without insider knowledge. Steve