Monday, August 15, 2011

Eight Reasons Why Shorting Stocks is a Bloodsport

1. The markets overall have an upward bias over long stretches of time

2. The "big winner" math is difficult - a 2 dollar stock going to 10 has quintupled but a 10 dollar stock dropping to two has only gained 80%

3. Just when things begin to get juicy to the downside, governments tend to intervene with "special assistance", bailouts and even short-selling bans

4. Investors are less mad when you're long and the market is down, they are furious when you're short and they are missing a rally…

Read more at http://www.thereformedbroker.com/2011/08/15/shorting-is-a-blood-sport/

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