Best way to find stocks to short..
- Thread starter Comptalk
- Start date
You can't tell till you bet.
Seriously. I know of no way to tell for sure if the price of anything is going down tomorrow, next week, next month, or next year. The only thing I know is if the price is lower now that it was at some prior moment.
When I am wrong I stop the loss.
I believe it helps to test methods using the computer and many years of price data.
Jesse Livermore authored a book that I like a lot and it covers short selling. Livermore's book is titled "How To Trade In Stocks", ISBN # 0-934380-20-1. The book is about 111 pages long. I remember paper trading the method and testing profitable. The problem with Jesse Livermore's method is he does not have a computer and must develop his methods manually. Mr. Livermore does not appear to analyze risk extensively, he vaguely mentions risk once or twice in the book. I suspect Jesse Livermore's lack of focus on risk is the cause of some or all his big losses.
Judging from trading volume I believe the Livermore method is widely used.
Seriously. I know of no way to tell for sure if the price of anything is going down tomorrow, next week, next month, or next year. The only thing I know is if the price is lower now that it was at some prior moment.
When I am wrong I stop the loss.
I believe it helps to test methods using the computer and many years of price data.
Jesse Livermore authored a book that I like a lot and it covers short selling. Livermore's book is titled "How To Trade In Stocks", ISBN # 0-934380-20-1. The book is about 111 pages long. I remember paper trading the method and testing profitable. The problem with Jesse Livermore's method is he does not have a computer and must develop his methods manually. Mr. Livermore does not appear to analyze risk extensively, he vaguely mentions risk once or twice in the book. I suspect Jesse Livermore's lack of focus on risk is the cause of some or all his big losses.
Judging from trading volume I believe the Livermore method is widely used.
Look on a live streaming stock screener for "ten most active daily declining stocks". Then bring up the stock in your chart and make a decision when to short it. Trade stocks that have a daily average volume of over 2 million and Stay away from stocks under $5.00. But be careful, because by the time the stock makes the list of most declining for the day, then it is already too late and it goes back up after you buy it. Make sure the stock isn't declining on earnings or news, because it will go back up after all the news hype is done with.
