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Hi Jerry,
Shorting stock in this environment is a lot less risky than long
positions...i.e. stuff goes down a lot faster than it goes up.......am I
wrong ?<g>
And if I'm not mistaken, isn't shorting against the box viewed as a
"constructive sale" under the new tax laws? (and no, I don't mean to start a
tax discussion)
The idea I was telling you about has always struck me as pretty clever
though, and I thought this might be what Harvey is doing.......The guy I
know is a size-large trader and his long/short in two-accounts idea allows
him to go short without borrowing stock, without an uptick, and best of all,
much faster than you could normally do without it. He always works on the
instinet side, so he's able to play the market maker game, and with enough
size to move a thinly traded issue. (One of the main reasons I stay away
from tiny floats.)
I agree, it's hard enough to make 2 decisions (when to buy and when to sell)
but in a down market, the trend is your friend IF you're going short, right
?
Dick
>Dick....
>
>To me it makes more sense to not have a position if I want to be "flat." I
>never worry about the uptick rule because I never short a stock. It is
tough
>enough trying to make money on the upside, let alone trying to do the same
on
>the downside. But regardless, I understand shorting etc., and I will
always
>contend that being long and short at the same time borders on lunacy,
unless
>of course, it is for tax purposes, which is "short against the box."
>
>It appears to me that in Harley's case, he is trying to work out of a
losing
>position and that as soon as he gets even, he wins. Making all these
>investment decisions (being long and short) to accomplish that just doesn't
>make sense to me. Trading the long side to make $50 while having the short
>side continue to build up a loss, is not logical investing or trading. I
am a
>strong believer of....if you like a stock, buy it. If you don't, stay the
>hell away from it.
>
>If you like a stock, you buy. One decision! When you get to not like it,
you
>sell it. A second decision! It is done!!!!!!! That is not the case if you
>are long and short....you are only, quite possibly, half way through your
>decisions.
>
>And the tax consequences of long and short trading have yet to be
discussed.
>
>Jerry
>
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