I think the real issue is the stock should have never been shorted in the first place. This stock was, and is in a very strong uptrend.
"r/r = downside/upside potential and the third component would be how long your money is locked up in the trade ie: opportunity cost" My opinion is that the third component is the most valuable. The best trade is one in which you can make the most money in the least time. If your money is locked for weeks or months waiting for something to appreciate, then you might miss several other opportunities along the way.
Looks like we have another "Nathan" thread. Before this goes much further, perhaps those who might post would be interested in the following: http://www.elitetrader.com/vb/showthread.php?s=&threadid=76477 Looks like just more of the same. LC
Again, Lamont has successfully demonstrated his poor level of reading comprehension. If he read the first post, he'd know that this thread is about money management, not TA, like the link he posted. However I would like to thank the other posters, as your responces have been insightful.
Actually, like the first, it's about your inability to formulate a trading plan. Don't you have a parent or guardian with some control over your expenditures?