Day trading strategy, Stock trading rules for investing in the market
Breakout Penny investing | Day trading  Stock
Skip Navigation Links
    •   About US
    Market Activity
    World Indices
    Market Watch
    Customer Service
    Learning Center
    Economic Event

Join Now

Advertise 2 ۩  Daily market forecast

I don't own any Stock, then how can I short sale?

I don't own  any Stock, then how can I short sale? - 
               stock investing This is a bear market Stock trading strategy. First thing you need to understand what is short sell? Short sell is a facility provided by Stock exchange, using that you can borrow the share that you expecting price will goes down and you want to sell it first and after that you can buy it at cheaper price. Basically you don't own any securities and you selling that securities when you expecting Stock market or particular share | ETF goes down, and you want to take advantage of that.

You can do short sell of Stock | ETF | option.

In short sell you selling Stocks | ETF first by borrowing from broker and when price come down you buying those share back, it means first selling at high price and when price come down, that time you buying it at low price. This is a good strategy to make money in down trend market. But it’s a real high risk strategy, in this strategy you can loose more money then you invested. I am not recommending this strategy to any trader who don’t have depth knowledge of market.

Before to short sell any share you need to know the market and particular share or ETF short term trend, resistance and support level, make sure there are enough room to next support, and reasonable stop loss if your trade goes in opposite direction to protect your capital. Once you know trend is down, and price comes at resistance zone, you can short sell.

You can short any Stock trading above $5, and that you need to buy back at low | high price.

How to find out Stocks that we can short sell?

To find out down trend Stocks, you need to learn technical analysis. Simple method is look for downward traveling moving average. Some technical indicators in over bought tertiary and price moving up with negative divergence, or you can play downward breakout of double bottom, flag, triangle, head and shoulder etc.

With batter understanding of market trend and Stock | ETF trend you can short sell for day trading also. For day trading you need quick decision power. Many day trader loves short sell. For day trading simply apply shorter time frame and look for downward breakouts.

Related Reading

What is Day Trading?
How to start Day Trading?
What to trade in day trading?
What is best time to buy | sell for day trading?
How to find out Stock market trend for day trading?
How to find out Support | resistance for day trading or Stock trading?
How many Stock I can buy for day trading?
Is there any restriction from Stock Exchange for day trading?

Home for ۩ Day Trading | Breakout Stock trading system | Penny Stock Investing | Market Research

Contact Us | Affiliate | Disclaimer | Feedback | Help | Site Map | RSS  RSS

All Rights Reserved © 2000-2006