Highfliers Are No Walk in the Park

Sometimes traders see these highfliers and think that they'll be easy money. In trading, the evil stepbrother of catching a falling knife is trying to call a top on a big mover -- and, recently, I saw a lot of folks pushing a short on Plug Power (PLUG). Heck, I even jumped in for a scalp. But the issue with names like this is, if you want to make big money on the downside, you will likely have to carry a position overnight. This takes risk to a whole other level. If you don't know what I am talking about, just take a look at the daily chart on this stock.

Plug Power (PLUG) -- Daily Source: StockCharts.com View Chart » View in New Window »

This past upward move was Plug Power's first big gap up, having followed a series of climbs in early December. The stock even saw some upside action in early November. A series of gaps, though, makes the juice hard to come by. Stocks like these can gap up day after day and squeeze shorts tighter and tighter. Then throw in a day like Wednesday, when getting a borrow on the stock was incredibly difficult and shares were being called, and the price can become a rocket ship to the upside....251 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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