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Strategies & Market Trends : Successful Short-Term Trading Strategies for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: John Vsetula who wrote (46)	8/12/1998 11:09:00 PM
From: William W. Dwyer, Jr.	Respond to of 78

If a stock has a sudden big drop in its share price that is not due to a general market decline, then it's got to be bad news. Short term, you may be able to short the stock (you gotta be good at this) and make a profit during its decline, or wait for a predictable bounce at the bottom, particularly if the news was not "that" bad and the market has over-reacted and beat the stock up too much. But this would only be for very short term daytrading, minutes, not for anything else. If you miss the initial bounce, assuming there is one, it may take days or weeks to recover, if it recovers at all, and you could be stuck holding a really bad stock and tie up your trading capital. Generally, I wouldn't play these stocks as a beginner. Easier to make money on stocks that are going up rather than going down, imho.