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Strategies & Market Trends : DAYTRADING Fundamentals

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To: sherry who wrote (1330)6/23/1999 12:10:00 PM
From: Dave O.   of 18137
 
< Re: Shorting Stocks >

I think it's a good idea for anyone who wants to trade to learn both sides of the market. A book to provide some general background info an shorting is Kathryn Staley's, The Art of Short Selling.

I look for any stocks that are extended relative to Bollinger Bands and I'll also look at Stochastics and/or RSI. I also love shorting after a runup in the market indexes. After the benign CPI number last week and Greenspan's remarks we had a big upswing and I've been shorting since last Friday. I would recommend anyone new to shorting to take small positions initially, so that you don't get easily wiggled out and also to get comfortable with the concept. We all know the market doesn't go up undefinitely and only playing the long side limits ones overall profit potential.

Dave
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