What are the best SHORTING methods?

[Runner]

Here is just a method that like most work only when they work. Check out a daily chart of ERS. Notice the heavy thrust down followed by a pop up or pullback. Trigger under yesterdays LOD. I view a stock that makes a 20day high and then sells off hard as being in trouble. I also look for stocks that gap down against current trend. If it cannot fill the gap it very well might be a short. Look for stocks that stall just prior to old highs, as this is also a sign of possible trouble.

Here is the best thing. If you’re shorting a stock near highs you will no if your wrong because the stock should not put in higher highs. This makes managing your risk easy. But I’m the farthest thing from an expert in shorting.

Look over many charts but not only as possible longs. This will help you identify patterns that keep happening over and over again. I also would recommend not having any indicators running but just price..

[sisterwin2]

Sis,
When you short you can cover yourself, too. It is called "a covered put." What happens is you sell the stock, and you sell a put, too. That gives you extra dough in case you were wrong about which direction the price is going.

MM is married. Look elsewhere. Remember, there are other fish in the sea.

LMAO.....when I was out to sea I loved those big lobster (crawlfish) and grouper. I was pretty good with a spear. I hated when I would miss and just nick the fish and they went off to be eaten by other bigger fish. Sorta like my stock picks. Joking about MM.

I plan to spend tomorrow morning attempting to get the lingo down with options. It seems to be profitable if done right. Buy to open/buy to close, sell to open/sell to close. I just turn so blonde, I think the fear factor kicks in pretty strongly. I have learn when in doubt, do nothing, doing nothing is a decision.

[New-born baby]

LMAO.....when I was out to sea I loved those big lobster (crawlfish) and grouper. I was pretty good with a spear. I hated when I would miss and just nick the fish and they went off to be eaten by other bigger fish. Sorta like my stock picks. Joking about MM.

I plan to spend tomorrow morning attempting to get the lingo down with options. It seems to be profitable if done right. Buy to open/buy to close, sell to open/sell to close. I just turn so blonde, I think the fear factor kicks in pretty strongly. I have learn when in doubt, do nothing, doing nothing is a decision.

The covered call is as safe as it gets--safer than buying a stock alone. The covered put is as safe as it gets--safer than just shorting a stock. So throw the fear in the garbage can, and look again at the options.

To sell a call, you sell a call. To close out that same position, you buy the same strike and month that you sold. It is just like buying and selling a stock.
Stock AA is bought by buying shares at $30. Then you sell the shares at $35. Simple. With a call, the bid is to sell--that's just like selling a stock, you get paid when you sell--and the ask is to buy a call--just like when you buy a stock.

So, Sis, it really is pretty simple. Try it--you'll like it.

[DSteckler]

It seems to be profitable if done right.

The devil is in the details.

[sisterwin2]

The devil is in the details.

its always those minor little details that get me....
very proud of you with the quote button, hehehe

[lemonjello]

So how are everyone's shorts doing?

[DSteckler]

Easiest (and cheapest) way to short is by using inverse market funds. Rydex, Profunds, and Potomac all offer inverse funds for the SP500, Midcap, Naz and Treasury bonds. They also offer 200% inverse funds, if you want to get aggressive.

[sisterwin2]

So how are everyone's shorts doing?

betcha most are doing great today

[rivercitydan]

Best Shorting Method

I have found that the best shorting method the last two days has been to buy anything(sell short). There has been some serious money lost. I got out mostly yesterday and went very short today. Now watch for a big rally monday, it never fails.

rcd

[DSteckler]

I have found that the best shorting method the last two days has been to buy anything(sell short). There has been some serious money lost. I got out mostly yesterday and went very short today. Now watch for a big rally monday, it never fails.

rcd

That could happen. The 5-day RSI is the lowest it's been in many months.

[lemonjello]

Does HANS look like some kind of chart formation that screams for a short?

If things start going south all the momos will start piling out of HANS.

Jus sayin.

[rivercitydan]

Shorts

MY FAVORITE SHORT RIGHT NOW IS DELL COMPUTER (DELL) IT HAS BEEN A GOOD RIDE.

The Company is in trouble and so is the chart. There is an article today on dell in the New York Times.

[Runner]

Lets put DELL under the scope using weekly chart. It put in a base back in 04 I suspect break out players were buying the break out. It finds its high then sells off. During sell off notice it falls back into the base. During the next pull back DELL stalls prior to old highs. This flags warning longs and aggressive shorts shorted it and had stop just over old highs. Great risk/reward. Thrust down from stall point but no set-up until first pullback.

Yes this is in hindsight but pay attention to the following:

Stall at new highs
Stocks that fall back into bases
Thrust that drops below bases. (often will become stiff R-line)

[lemonjello]

No fans for HANS

No charters want to take a stab at HANS? How about a direction and a target.

I'm no grand poobah junior chartman, but the direction looks like 95% down to around 150-60 for the next few weeks. On the plus side it allegedly has great earnings growth and just signed a deal with AB. But who really drinks this stuff? I've had it a couple of times and definitely would not go out of my way to get it again - it was a pointless non-event. But hey, people are sheep. Maybe they're expecting to go big in China like Charbucks. Or maybe they're on the Snapple model. Now Snapple, that was a great company!

The Stonecutters have seen to it there are no options on HANS, btw. We are sorry about that, but we have our reasons.

Does HANS look like some kind of chart formation that screams for a short?

If things start going south all the momos will start piling out of HANS.

Jus sayin.

[Runner]

I don’t know what to think of HANS and so I’d leave it alone..