[schnoodleC]

One difference between buying and shorting is with shorting the "why now" question is especially important. If a stock that I've shorted goes up 10% I absolutly take the loss, though usually I'm out before that. The short is usually no longer more attractive at that point, there is usually something wrong with your short idea in terms of the "why now". A good example of this was when I shorted BEAS a few months back. It went up on buy out rumors I felt were false. I also felt that the business was fundamentally weak I shorted and covered and made around 8%. It went up again and I shorted again. It then climbed further. On further research I felt the latest climb was due to renewed business strength so I covered for only a 4% loss. It is since up about 20% more. So, the rise showed that my idea was wrong and I cut my losses.