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Author: JDBarron Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36502  
Subject: Re: Where are all the shorts? Date: 3/6/2000 10:10 AM
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RE:
"A couple of weeks ago, I started to notice that CRA was beginning to form a pattern. One day it was up 10 or more points and then the next down 10 or more
points. It seemed to be going in this cycle every week, and if I had know how to short stocks, I would have shorted CRA after that incredible run on thursday and friday where it went up about 80 to 90 points in just two days.
Sure enuff, that following monday it went back down and did so for a couple of days. Getting out my TMFIG, I researched how to short stocks.
Now if CRA goes into that type of pattern again, I'll consider shorting it even though I'm LTBH with CRA."
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IMHO you are about to make a very serious mistake. Shorting is a very RISKY approach: the upside is limited and the downside is UNlimited. Especially with THIS stock which often breaks the "rules": (I've seen the price go UP for over 15 minutes while the asks were over 10 times the bids the entire time and then rocket upwards.) Patterns can change very suddenly and without apparent warning (ESPECIALLY if you don't have level II quotes and other high powered tools (although even THOSE don't always help).

Shorting is NOT for the inexperienced. And you have to have the kind of personality that will allow you to instantly "cut off your leg" to get out of the trap if necessary (the price starts zooming up) WITHOUT having to pause and think about it. You could REALLY get killed if you wait too long hoping for a miracle and the price to drop back (look at the charts for the last 4 months and see how many times you could have been killed shorting at false peaks).

A number of people on this board have tried merely selling out at peaks and buying in at dips (a lot more difficult than it looks retroactively) much to their regret. Shorting is far more dangerous.

Just my humble opinion.

Hunting deer is one thing. Hunting tigers something else entirely.
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