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Happy new year to all.
A few thoughts on shorting, and Qcom in particular:
- When shorting stocks you can make, 10-20 up to 90% if the company goes
bankrupt.
- When buying, you can make typically 20-50 up to several 100% %
I don't bother wasting my time trying to squeeze profits from shorts, and spend
more time finding good cies to invest in.
Concerning Qcom, in my opinion it is one one of the cies that may significantly
shape the future, so I definitely wouldn't even think of going against this
major trend.
FWIW
Gwenn
wong wrote:
> Dear Ira and John:
>
> Some analyst set the price target of Qcom to be $1,000 within a year.
> Maybe it's too early to short the stock?
>
> A broker friend of mine once told me (20 years ago) that trading is like a
> bull stampede. You don't want to stand in front of the bulls when they're
> charging towards you (that is, fighting against the current trend). Best
> thing is to step aside, wait for some technical indicators to validate what
> you're going to do (but also notice that in a very bullish environment, the
> indicators can be extremely overbought and still remain that way for months
> to come..).
>
> To minimize the loss, perhaps one should also look at some puts?
>
> Regards,
>
> Wong
> =================================================================
> At 06:50 PM 12/30/1999 EST, Dr. John Cappello wrote:
> >Dear Ira,
> >
> >You are absolutely right.After your post I decided to check into a Vertical
> >Call Spread and I will see what the numbers look like tomorrow.
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