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[amibroker] Re: Can not short sell stocks under $5.



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I have this filter for price > 5 for both long and short.  This 
helps me to compare my stock picks with those that made it to this 
list at http://quotes.ino.com/analysis/extremes/stocks

I frankly see no particular reason not to short stocks as opposed to 
going long.  They are the same, except that when one is shorting 
stocks, they are doing it on margin money, i.e, borrowing from their 
broker and not dipping into their account equity.  If that is not an 
advantage, I do not know of anything better.  When a stock is 
overvalued and you determine that it has reached a top, you short it 
and when it is undervalued and you determine that it has reached a 
bottom, you go long.  No great mystery about it.  

I find that an financial instrument falls twice as fast as it goes 
up, i.e., it is possible to make money twice faster by shorting than 
by going long.  I have made more money shorting stocks than by going 
long.  Of course, one has to do their homework properly and 
determine that the stock has indeed reached a top.  Those who 
complain about shorting stocks have obviously not done their 
homework.  They may have made money by getting lucky in a bull 
market by going long, ignoring company fundamentals, but when the 
rare event occurs, the rest is history...

rgds, Pal
--- In amibroker@xxxxxxxxxxxxxxx, Terry <MagicTH@xxxx> wrote:
> Very common rule for most US Brokers. Better put in a filter for 
Price>5.
> -- 
> Terry
> 
> 
> 
> Does someone with more experience than me know if this $5 rule is 
the norm
> and generally applied by brokers?  I use optionsXpress.
> Kerry
> 
> 
> 
> 
> [Non-text portions of this message have been removed]



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