Forum Archive Index - February 2003

[Holden Glova <dsafari@paradise.net.nz>]

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On Sun, 02 Feb 2003 16:36, gooner wrote:
> HOLDEN.......shorting stocks isn't advocated because the media is owned by
> people who want the good times to continue...they don't want to be seen to
> be telling people to sell shares.............brokers don't tell clients
> this either...........very rarely will a broker give a 'sell'
> recommendation.

Good Point - I hadn't thought of this one...

> AND HOLDEN YOU ALSO SAID
>
> "You don't need to put money up front (although of course you should have
> funds to cover those short positions"
>
> Well the brokers who short sell in NZ (And there aren't many) will most
> probably require funds in a trading account to cover your positions.  You
> can leverage (ie borrow) on those funds but that is not for the faint
> hearted.  Short selling the S & P and DOW indices is very easy and in
> todays climate the smart move.  If you had a permanent short position (not
> recommended and again not for the faint hearted) on the SP500 during the
> last 28 months you would have done very nicely thank you.  But, most
> brokers would recommend stops and would probably almost demand it if you
> are leveraged.
>
> I have many friends short selling the SP500.  They need many short blacks
> to get them through the day (they are up all night!) but have made a
> packet.  I chickened out -  much to my annoyance now.  Good luck if you
> decide it's for you.
>
> Cheers
>
> Gooner

Thanks for all your comments Nick. I think at the very least I need to 
understand this sort of strategy. One should never discount something as a 
bad idea until they understand it IMHO. Thanks again :)

- -- 
Signed,
Holden Glova
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