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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: sandintoes who wrote (7952)	4/18/2005 11:44:25 PM
From: Walkingshadow	Read Replies (1) \| Respond to of 8752

Shorting is essentially the opposite of taking long positions. You have to have a margin account. Generally, you look to enter long positions in uptrending stocks that are oversold and have corrected back to support. Generally, you look to enter short positions in downtrending stocks that are overbought and have rallied into resistance. That's the basics. Beyond that, I like to look for a few other things. I like the market and the sector to be on my side. And if I take a short position, I want no more than 3 or 4 days' trading volume in existing short positions. That is the short ratio, and gives some indication of the probablility of a short squeeze. The short interest in most stocks can be obtained from the key statistics page on Yahoo when you bring up a stock quote. Conversely, I like as much short interest as possible in long positions, because a short squeeze will add wind at your back. T