Tactics for Picking Shorts

Discussion in 'Strategy Building' started by Phill Twist, Sep 3, 2015.

  1. What are some effective tactics to use when picking companies to short sell?
     
  2. moving averages

    take a look at TSLA for example, the 50 day moving average for TSLA is about $256 and it acts as resistance so it's a good short opportunity and if it pushes through that resistance then you would cover your short
     
  3. If they are comfortable, reasonably priced, and you feel good in them.... then go for it.
     
    hedron and lawrence-lugar like this.
  4. Jamesbr

    Jamesbr

    I always go with the price action
     
  5. Handle123

    Handle123

    Depends on how aggressive or conservative you are, if aggressive you stick to Price Action alone and if more conservative you add fundamentals like 0% Dividend, Analyst Recom. Hold to worse, Price $15-50, Sectoring by Industry Groups through Barchart and find something declining in overall Industries, don't want to get the worst of the worst as they might be bottoming soon. Keep track of dividends so you don't end up paying them. Finviz is excellent charting for automatic trendlines that is free if you don't have it on your charting software.

    Check out AEGR, it certainly more near lows than highs, Hitting down sloping trendline, so it be cheap sell, price either holds or take quick loss if punches through, but always make sure you have studied the instrument well as each stock has a personality.
     
  6. When you have inside information.
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    abattia and hedron like this.