>Or, of couse you can go the other way and sell short on stocks that you think are over-valued. I think there is a lot of money to be made on a lot of internet stocks right now (by short selling). Of course, it all depends on the risk you want to take. The risk when selling short is higher because you don't know how much you are gambling (when you buy, you know exactly the amount that you are gambling).

You can make money when a stock goes down alo by buying put option contracts. You know exactly how much you are gambling here as well.