Today I wanted to short WSM if it broke 23.25 . when It hit that level I started entering sell limit orders .05 below the bid , smart order routing . Quit chasing when it went below 23. Is this the best way to short ?never got filled .
You need to study up on the uptick rule..... On listed stocks, there has to be an uptick before your order executes. On Nasdaq stocks, there has to be an uptick, but your order can be the uptick. Thus, you would need to enter an order 0.01 above the inside bid. It can still be tough to get filled sometimes.
On listed,you need a plus tick or a zero plus tick.On nasdaq,you just need an uptick bid.So therefore,it is easier to short a nasdaq stock.To add,nasdaq small cap stocks have no short sale rule.You can short on upticks or downticks.
Personally, I never short that way but there's nothing inherently wrong with it. It's just hard to get filled because of the uptick rule. If the stock is really selling, you probably won't get an uptick. If it isn't, you might get filled just as it reverses and runs up again. I usually use one of two methods to short. 1. If the stock has a decent spread I put in an offer below the current low offer. I then become the low offer and will be matched up with the first market buy order that comes in (provided there was an uptick). 2. Put in my offer above the current low offer at a resistance point (take your pick here: intraday high, various moving averages, the figure, etc., etc.) The idea here is to pick a natural reversal point and hopefully with some luck I get the high print before the stock tanks. (At least that's the theory. ) Because of the uptick rule (and I'm talking only NYSE here 'cuz that's what I trade) it's nearly impossible to short a stock that's already on it's way down. You have to anticipate a little and hope you read the indicators correctly.
Obviously at 9.35-9.50. Yes that was the time period and it was falling steadily. Did'nt see any upticks . Thanks all for your input . Will just have to accept that sometimes its tough to get short when you want to the most . Maybe our broker will give us access to bullets one day .
Or you could just become a prop. trader at Swifttrade, as it appears they aren't required to observe the uptick rule! MACD
Would routing thru Arca or Instinet have been any help. Thats what longbull told me I should have done .
What I do is watch the Last price. When it pauses for a bit I enter a sell (limit) order at 1 or 2 pennys higher and hit the finalize button when my chart shows an uptick. Works 90% of the time.