good stock to use when thinking about short selling stocks in this current market
short selling stocks definition
Sep-15-2008 In this down market we are having, as we have seen in the market today, short selling is becoming a more popular idea. The reason more and more people are doing this is because they are predicting the price of a security to fall rather than go up. When the general market is falling and certain industries like the banking industry are doing the poorest, it can seem easy to short sell and make money. However you can still fall into a pit of disaster if you short sell a stock in any industry and you don't do it at the right time. Going short can be a disaster since there is NO LIMIT TO WHAT YOU CAN LOSE. Bellow I provide some information on when and how you should short a security. I PERSONALLY am not a big believer in technical analysis though I think there is some truth too it when your want to go short, and are looking for a trend down. If you go to
how do I figure out when to start short selling stocks
I think to find the good stock to short you should look at the moving average. When it's 5 day moving average crosses down through it's 20 day moving average go ahead and short sell. Just make sure that if you ever short anything that you have enough self discipline to cut your LOSSES SMALL if things don't work out. This is because if the stocks that you short starts going up a lot you will start getting margin calls-there is no limit to how much a stock can go up. On yahoo finance you can set the moving averages how you want, but just make sure that you also look at the securities and see if they are leveling out at a peak. This is known as resistance. Basically if a stock has been going up for a while many times there starts to become more people trying to sell than buy, and the stock gets relatively flat for a few days. Once it starts to get flat go ahead and try to short it if the general market is falling. Make sure though again that you CUT losses small for short selling stocks. You can start retiring young if you can make money no matter what the economy is doing. value stocks This is why we can't forget how to make money when the market is falling.
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