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.

Technology Stocks : Data Broadcasting Corp. (DBCC) -- Ignore unavailable to you. Want to Upgrade?

To: John Mendenhall who wrote (2875)	1/11/1999 10:20:00 PM
From: Trippi	Respond to of 5102

John -- first I very rarely short -- but it is pretty straight forward -- you simply place an order to sell the stock short. When you have traded long -- the buy was your entry into the trade and the sell order was your exit from the trade. Selling short is the opposite -- you place and order to sell XYZ short as your entry into the trade -- and then place a Buy to Cover order as your exit from the trade. When you sell the stock short you are selling borrowed shares (sense you don't own any) these shares are loaned to you on margin by your broker -- and when you buy to cover -- you are buying shares essentially to pay back the loaned shares. You sell XYZ short at $100, Buy to cover at $50 and make $50 per share for example. If the stock moves against you -- you buy XYZ for $100 but the stock moves to $150 and you decide to bail -- well you got to buy shares for $150 that your broker let you borrow to sell at $100 -- so you are gonna be in pain. Don't do this. Read alot about it. Watch these boards and do a lot of paper trading. I mean actually pretend to sell DBCC or another stock short (only after DBCC goes much higher)<g>. Keep a record of your paper short trades -- and do not try a real one until you are familiar and comfortable -- and feel qualified to do it. People have gotten creamed shorting in this market.