****** Charts are how I figure out what to Short ******
a) A stock has been going along for Weeks & Months w/No movement, then KA-BOOM, 40% UP!b) Look back a Month, 3 months, 6 months & see what the stock did after that move UP.
c) If it went Back Down Immediately the same day or Next Day, You want to SHORT IT!!!
*******Memorize Stocks that repeat & keep coming back: RADA, CNET, CNAT, ROSG, JRJC, NETE, NVGN, EYES, ADXS, ATHX, AVEO, ONTY, etc....
1. Use Twitter & follow the main traders I follow: Nathan Michaud, Modern Rock, Phil Goedeker & The Daytrade (great tools) (Follow stocks they are Tweeting about.) (power in numbers & some post Watchlists)
2. If you catch a stock that is up $4, $5, ETC, $8, $10, $15, $30 premarket, You want to get Short EARLY in the A.M. about 6:00 to 7:00 Central Time. Generally that stock will have a big pullback and you will Bank. (EASY & SAFE TRADE)
3. Focus going Long, if you are a Noob. (I go long Sometimes)
4. No Shorting if you are a Noob.
6. Open a paper account first and practice. No emotions will be involved when you lose $$.
7. Trade w/ small positions, then LARGER over time as confidence builds. $1000, $2000, $3000, $5000, $10,000, $15,000, $18,000 etc....
8. Sometimes you will get on a losing streak. It has happened to me.
9. I usually never hold anything overnight. Sometimes you make $$ and Lose $$. It leads to
a stress free night & weekend.
10. Start fresh every morning. It's not good mentally to wake up to a Loss.
11. IF YOU DON'T HAVE ANY MONEY you can open an account w/ TradeKing.
12. Margin accounts, for shorting, you need $2000 to open.
13. I use Interactive Brokers or IB for short. They charge $1.00 & up for trades.
14. Most real Traders use IB or Centerpoint Securities because commissions are cheap &
they have borrows to Short.
15. I was w/Etrade when I first started, but realized how they were ripping me off @ $9.99/trade.
16. Etrade, Ameritrade, Scott Trade: all of the Brokers you see advertising won't let you Short anything under $5.00. They usually Never have any Borrows to short.
I Short stocks that are:
High % Gainers w/Volume over 1,000,000 daily traded.
2. High % gainers will have a pull back, Espec stocks that have been quiet for a long time & then Boom, huge gains & volume.
3. They will pull back to about where they started from.
4. It is Risky to Short on the Front Side of the move.
5. You want to Short on the Back Side of the move & ride it down All day long if possible. (Fade or Wash Out)
6. Many stocks will repeat over time & you need to get Familiar w/ the Tickers.
7. Some stocks have a longer life span of Several Days, others are Pump & Dump the same day.
