Shorts

I just posted a couple of "short" ideas. When you short a stock you are trying to make money on the share's price going down. It is an excellent balance to your Long positions and reduces overall exposure to the market. It is also why some hedge funds made moeny money last year.

If you use an online broker you just select "Short Sell" from the drop down menu instead of "Buy". Technically your broker (Charles Schwab, etc.) borrows the shares from its own account or the accounts of its clients, and then sells them into the market on your behalf. Your account gets the money received for the shares. When you want to get out of the position, you place a "Buy to Cover" order for the number or fraction of the number of shares you originally shorted. The shares are bought on the open market and returned to the account from where they were borrowed. The difference between what the borrowed shares were sold to the market and what you bought them back at is your profit or loss.

"Shorts" will be tickers of stocks I think are worth looking at to Short. When I take a name off the list, it will be removed from the list and I will post a quick write-up as to why.

-2outof4