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Stock Market Superheroes: INTC, NFLX, AMZN, HD

Whenever someone argues against short-selling, they often bring up two very scary words: Infinite Risk. In other words, the most you could lose on a long position is 100%. But there is no mathematical limit to short losses. You could short a stock at $ 10 and it opens the next day at – – what – – let’s say $ 500,000. Shriek, right?

Well, yeah, but that doesn’t happen. I think the most horrendous wipeout I ever suffered was a 50% gap up, and since my positions are typically 1% of my portfolio, it wasn’t devastating. If someone is going to argue against short-selling, I think a far better and more realistic argument is …
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