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Technology Stocks : Wolf speed -- Ignore unavailable to you. Want to Upgrade?

To: RGrey who wrote (964)	11/29/1998 10:55:00 PM
From: Charger	Read Replies (1) \| Respond to of 10718

Aah. OK. Back to basics. To sell a stock short means to sell shares that you do not own. You sell them before you have bought them. Lets say you sell X stock @$15 x 300 shares because you believe it is going to go down. You must short on an uptick (that's the "law") so you put your order in when the bid is 14 15/16 to sell at $15 and the stock rises to $15 and you have sold short your 300 shares. Next the stock moves to $15.06 and $15.25 but your are not worried, you hang tight. Finally the stock moves down to $15 and then $14 and then $13 and now you decide to "cover" - you buy back those shares that you sold, leaving you with no shares in your account of that stock. Follow? You made 2 points on your trade. Now if the stock had kept going up and by the time it hit $16 you decided that maybe you had made a mistake, you would cover at $16 and you would have lost 1 point. In this particular instance, the most you could make would be 15 points on the downside. However the stock could run 40,50,200, etc. points on the upside which would be your loss potential. Now, in order to be able to sell those shares which you do not own, your broker has to go to someone and "borrow" them temporarily. Some stocks have run out of shares to be borrowed so you cannot short them (with some brokers). That is why I said to the other poster that he "may" be short, but I myself (and all other Datek users) could not sell CREE short. P.S. I would rather you give me a simple TIA (thanks in advance) rather than infer that it is my duty to contribute to the "sector" so that you can learn. I do not mind teaching what I know and I am grateful to those who have taught me. Hope that helps.

To: RGrey who wrote (964)	11/30/1998 1:54:00 PM
From: Pink Minion	Read Replies (1) \| Respond to of 10718

What does this mean? What do you mean by no shares available? I bought CREE late last week. If you don't know what shorting is you really need to do some surfing. This isn't for novices. Learn about options and other ways of trading. Don't play options just learn how they affect the market. These are all methods to reduce risk. A 15 percent stop-loss is good (10% better), just don't let the market maker know about it or they will take it out. Cree has great prospects but they are very highly priced. Learn about price to earnings and price to sales ratios. You will see Cree trading at the top of these ranges. But in this market it could go to 60. Mr. B