Quote from rodden:
OK. You know yourself better than I.
I know from my own experience that daytrading short a rising stock is no less intelligent than going long; the trick ( that works for me ) is to wait for the days that the high for the day is likely to occur on or shortly after the open. Profit-taking is an inevitability - very little else is.
Also, for the both-ways daytrader, with massively liquid stocks like MSFT, out-of-left-field decimating gaps are more likely to occur on the downside than the up. If you're going to take a gigantic position and can monitor it closely, it makes more sense to go short than long.
I assume you monitor your stocks closely; if so, your trade wasn't stupid - it was just big. After all, in this environment, no matter what you do with your money, you're gambling.
P.S. I bet the farm shorting TXN @ 29.67 avg. this morning; so far it looks good. Got my stops in.
