Herd Mentality
                       Sooner or later every stock runs out of  gas,  or  inother words, the rubber band has stretched the limit. Brokerage firms  neversell, they just hint at it. Fear of heights and not  booking  profits  startthe ball downhill then the herd mentality sets  in  and  you  get  a  severecorrection as we have just witnessed in  AOL.  Once  it  starts,  there  areopportunities on the short side for day traders, which  we  will  illustratein weeks 3 and 4. I strongly recommend  that  as  an  individual  trader  orinvestor that you never take a naked short position home overnight.  If  youfeel that strongly about shorting an institutional stock you  should  do  itin one of the following ways with options: 1.) Long  Put;  2.)  Bear  Spread(Put or Call);  3.)  Put  ratio  backspread,  which  has  limited  risk  andunlimited reward; 4.) Synthetic Straddle, which would  be  long  calls/shortstock or long stock/long puts. The synthetic straddle is  for  traders  thatwant to trade the position by making adjustments according to the deltas  ofthe options. This course is not about options so unless you are educated  inoptions don’t utilize them  in  your  trading  plan  unless  you  understandeverything about their usage.