Short Selling Stocks > How To Short Sell Stocks ? Shorting Trading Strategies
Beginner traders often fantasize or wonder about how some people are able to achieve tremendous profits by trading stocks just a few hours on a daily or weekly basis.
So going farther than the hype & the bells and whistles that a lot of the called “trading gurus” like to invoke, the real “secrets” of the stock market game are enclosed within the trading set ups and market signals you rely on to decide how to CHOOSE stocks, as well as WHEN to BUY & when to SELL them, or even when to SHORT SELL those that are poised for a profitable fall.
So the clearer your set ups are, the faster you can spot a potentially profitable trading scenario and ACT ON IT reducing your risk.
Complicated technical systems and information overload can make you slow and confuse you right from the start, making you loose money instead of making your profits grow.
In essence, You can be sure that the trading method you employ to approach the stock market and pick stocks can make a big difference in your results as a trader. In order to succeed you will need to FOCUS on a set of simple trading strategies that you can implement without hesitation.
Fortunately some sites on the web do offer more effective and updated day trading methodologies. One of those sites that can show you how to take advantage of certain stocks on positive and negative momentum as well is http://www.ChatHotStocks.com
They focus on momentum stock trading strategies, that are practical and easier to apply than many other technical systems out there.
Stock trading doesn’t have to be complicated as many people perceive. But you do need to follow a well organized set of rules and tactics, that once you master them, you can aspire to replicate profitable trades with consistency.
Firstly, there are ways to trade options without the waste that you speak of (called "theta") so don't let that deter you.
Options are much better than CFDs for a few reasons. Firstly, there are hidden margins built into the CFDs – you generally cross a fairly large interest rate spread. For example, if current rates are 3%, you might only receive 1% on your money, or pay 5% on borrowings. These spreads are much smaller in the implied option prices.
CFDs are also fairly limited – you can only go 100% long or 100% short, whereas option strategies can be incredibly flexible. For example, on your first CFD trade that you made 25% on, you could have made much more using options and also with less risk.
Options require a little more knowledge to use properly, but prices are generally much more efficient (saving you cash!) than the CFD markets.
Happy to continue this over PMs.
In your scenario your gain would be larger if you short before the close on Monday. IF you are right. There is typically a large movement in share prices at the open. So if you wait until Tuesday, and the stock does fall you miss out on a big part of the drop.
The disadvantage to shorting on Monday afternoon is that you can't be sure what will happen overnight and the effect on the next day's stock movement. Which makes it more risky. Personally, I only short in real time, when I can see the price action in front of me.
After hours trading may cause a price shift which may be reflected in the next days open. If you monitor AH action, you can use that to validate your assumptions.
All investments are designs to capitalize on the future. There is no certainty, ever. However, we can mitigate much of the risks through close examination and weighing interpretable information.
When I buy a stock, I never think in terms of an indefinite holding period. Rather, I recognize that there may be a value in the next month, two months, perhaps two or three days. Time is an quiet threat.
There is no such thing as permanent value in anything. All stock trades and profits or losses must be viewed on a basis of timeliness as well as profit potentials. The end goal is that of tapping into the potential WHILE IT IS AVAILABLE. Thus, when the clock is thrown out, most logic goes with it.
Len