Please help -- shorting techniques

Quote from BigMike:

Do you realize that beta is taken from a 5-yr regression based solely on daily closes? My experience says that for daytrading, beta is pretty much useless.

That is all.


BigMike
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Good point about the day trading. I'm coming at it from a swing trading perspective. The calculation for Beta can be any 5 period time frame by the way if you want to customize it for your time period of trading.

-D
 
Quote from Fast_Trader:

Btw, I think taking positions in multiple stocks is a better way to go. That way, even if you get stopped out on half your trades, the other half can still make you some $. I only play the open, and it's a bit difficult to enter too many positions. Still working on that. I'd like to be in 5-8 positions within the first 10 min. of market open.

-FastTrader
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Set these trades up as customized baskets if your software has it. You can manage them with less slippage.
 
Try out Interactive Broker's Basket trading feature. It's pretty easy to set up and execute. Just click a single button and it will fill your orders in order, just like that. You can try it out on their live demo -- it works, though only with a limited roster of stocks.

Granted, you'll probably have to pay the spread, but sometimes it's better to get in and pay the spread than to wait to not pay the spread and have the boat move away from the dock.

Panther

www.pantherproject.com

Quote from Fast_Trader:

Btw, I think taking positions in multiple stocks is a better way to go. That way, even if you get stopped out on half your trades, the other half can still make you some $. I only play the open, and it's a bit difficult to enter too many positions. Still working on that. I'd like to be in 5-8 positions within the first 10 min. of market open.

-FastTrader
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Panther, problem is I don't have a set basket of stocks I trade every morning so I don't think IB's basket feature would help me at all.

-FastTrader :)
 
It might if you want quick execution or to hit the open. All you would have to do is set up an excel spreadsheet, input your stocks and you could extrapolate your trades from that into a text file. Or wait until you've made all of your decisions based on whatever criteria you're using and then basket trade the entire salami at once (saving you a bit on commissions as well).

Panther
www.pantherproject.com

Quote from Fast_Trader:

Panther, problem is I don't have a set basket of stocks I trade every morning so I don't think IB's basket feature would help me at all.

-FastTrader :)
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panther, like I said, I don't know which stocks I'll be trading til a couple of minutes into the open. Entry points on each stock are different, so I don't think the basket would work. If you still think, Basket order is the way to go, please let me know how this would work in my situation.

-FastTrader :)
 
Turning the chart upside down is a good idea. It is a way that students are taught to draw things. Forces you to think with the other half of your brain.

Shorts are only easy of ETFs, futures or options.
When you short a stock, you pretty much have to do it on the uptick which is really difficult.
 
Quote from bobcathy1:

Turning the chart upside down is a good idea. It is a way that students are taught to draw things. Forces you to think with the other half of your brain.

Shorts are only easy of ETFs, futures or options.
When you short a stock, you pretty much have to do it on the uptick which is really difficult.
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I haven't really experience any problems shorting a stock.

-FastTrader :)
 
When you do enter a short trade, make sure you do it as a limit order or you could be in for a rude surprise.

One bad experience was more than enough !!! :D
 
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