Shorting not easy

Discussion in 'Trading' started by innovest_11, Mar 3, 2007.

  1. Always like to follow the trend, but account is below 25k and cannot play shorting due to pattern margin call. And also always too late to play shorting, because it happen to fast.

    So what strategy should i play now? Play technical rebound? But also not easy, what happen if it keeps falling?

    I'm not day trader, but a position trader, usually hold for days or weeks
  2. If you think shorting will provide key opportunities...

    You have two choices:

    * You need to increase your account size so that you don't fall under the 25k rule.

    This is easy to do and only requires you to get a second job to help.

    * You need to change to trading instruments that don't have pattern margin call as you called it.

    This option is a lot harder to do because it requires you to learn a new market.

    However, if your usually too late to short as you said...

    Changing trading instruments may not be an answer for you and it implies you mainly trade from one side of the market (Long).

    Howeve the odd thing you said was that your a position trader while asking questions a position trader usually doesn't ask.

  3. tdubnik


    You might also consider the Proshare short instruments like:
    DOG - Proshares Short DOW 30
    PSQ - Proshares Short QQQ
    SDS - Proshares Short SP500

    You trade these instruments just like stock except the price goes up when the market goes down.
  4. since when u cant short with less than 25k?

    i think u can, all u need is a margin acct.
  5. I think he was talking about a limit on the number of trades you can do in a particular time span due to the 25k rule.

  6. Agree, shorting usually is a day trading, position shorting can burn you to death.
  7. Many lemmings will get burnt in the short covering rallies that inevitably lie ahead of us.
  8. Yes, i have a margin account, but margin called due to patter day trading :p :p

  9. But lots of stock leaders are going downtrend, so maybe i should trend trade downwards? I mean higher chance of winning right?
    But then again, whenever i tried to short, it start to rally back.

    But if i maintain short position for few weeks, maybe still can work out in the end

  10. Shorting isn't a strategy and more than buying an asset is a "strategy."
    #10     Mar 3, 2007