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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (3065)	9/18/1998 1:02:00 AM
From: Sword	Read Replies (1) \| Respond to of 18998

Lessons Learned in Shorting: 1. Diversify. When TNSI and some others like POSS and ABTE rallied this week, I had no trouble holding onto them. This is because my other shorts continued their fall or just stayed where they were. Like the M.P. has said, keep your positions small and affordable. 2. Short for the long term. Find companies that are very unlikely to experience share price appreciation for whatever reason over long time periods and hold onto these until the underlying reason changes. It may never happen and they will either BK or enter the world of ghost pink sheets. 3. Find a brokerage that will work to track the offer price forever and allow you to keep your short. This will allow you to benefit from the GTO's (Go To Zeros) and delay taxes on your capital gains far, far out into the future (work it into your estate taxes instead so you don't pay until you die and go to heaven (hopefully)). 4. Find a brokerage that marks your short to market every day. This way, as the price ebbs away, you'll free up cash continuously for more investment opportunities or to enjoy or give to your favorite charity as you see fit. 5. Find a brokerage that will work to find you shares to short. -Sword