Best shorting advice?

Discussion in 'Professional Trading' started by bontrjd, Jul 30, 2007.

  1. bontrjd


    Is there any great resource for short selling? The short selling books out there are mediocre at best and I really don't know of any great resources compared to the myriad resources for longs. I'd like to be a little more well rounded in my continuing market education.
  2. if u newbie don't short .advice from experience.good luck
  3. bontrjd


    Yes, that's why I am asking the question. I am not going to run out and start shorting everything, I am trying to learn as much as I can about the process. Effective shorting ideas and info are hard for me to find.
  5. You can read jesse livermore, he was a short seller. You can google "owen lamont short selling" You can study IBD methods and short failed breakouts and pivot points etc. Everything IBD espouses on long side (look to do the reverse) Imo, his book on short selling leaves a lot to be desired.
  6. One other idea I could offer might be to go long a stock that is hard to borrow and see if you can collect the interest on the borrow.
  7. own 1k shares and spray 4 orders to sell 1k and try to get filled on all of them. you are short. just kidding.

    you may want to get good at calling interim market direction first. when you know what a top looks like then short, with a pasted offer, meaning you offer it. No market orders, if you did not get it, you were late, and move on to find another good candidate. Knowing is different than thinking, think tops you will get your hiney burned. you can learn tops by buying in first(long) and selling at the top(close), not the middle. You know it is the top when prices reach their climax. Livermore is good, read it. H e had this stuff covered a while ago, losses that pertain to this sort of trading as well. good luck champ, good time to learn, pay attention.
  8. You can hit a bid now to get short, so you won't get burned stepping down on the offer like you used to. You don't have to paste an offer now. Otherwise, sound advice you offer.
  9. I just did not want him to feel triggerhappy and short whenever and wherever. Hitting bids will make him pay up as well. Trading 1k shares of a thick stock, a few spreads and he is out 100 -150, for a new trader this can be costly. Offering the stock will reduce his trades to 1/10 of what he would normally trade, thereby reducing commish, and slippage. paying 3/1000 to remove is just rediculous too. to the active trader of course. If he learns to trade right and has the volume, his rebates will eat all of his commishons and fees. trade safe and smart. speculate dont gamble. make markets, dont let them make you.
  10. The trades where he gets filled though will be more often the losing trades; where he refuses to hit a bid and pay a penny (or several penny) spread, the stock will collapse. Spreads should never be considered as a cost, nor should take/add, except for the scalpers on thick stocks. I'm a heavily active scalper, and trying to be cheap over spreads always work against me, never for me.
    #10     Jul 30, 2007