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Rated: E · Outline · Business · #1269762
Short selling tips
Please read the following carefully before taking position in the recommended short-sell scrips:


Market should not gap up and trading up 150 points
The sector of the recommended shortsell stock should not be the top sector of the day.
If you are not into profit zone within half an hour of entering the position, exit immediately. Never wait for breakeven
Selling pressure should be more than buying pressure. There should be a reason/unfavorable news that will drive sellers to come in. A neutral stock though it looks good cannot go down without a reason.
Sell at resistance and buy at support in advance. Adjust the supp and resistance depending on the strength of the unfavorable news and market strength.
If there is any positive news breakout of the recommended stock during the day, exit immediately
Dont short if the stock gaps down heavily more than 3%. Wait till it reaches somewhere close to 1%
Never be in a hurry to invest. Be absolutely cool and calm, and patient and do not allow hysteria to come in. You are not going to miss the bus and for every bus you miss, 10 more will come. You will be short of money but there will be no shortage of buses.
Use stoploss. Before you even enter a position, know the point you are going to sell. If the share price doesn’t move in your favored direction, and moves against you, you will know when to sell. Emotions are removed from the equation, and you simply follow what your stop loss dictates.
Stay away from index and well-known stocks. These are high risk short-sell candidates.
Make sure the stocks you short-sell does not have near term news/result/dividend/YH
There will be many number of opportunities. Look for it, study, cross check and only when you are 100 per cent satisfied, put your money. Not if you are only 90 per cent satisfied.The stock should'nt have been beaten up and then rose after many down days.The stock should'nt have risen more than 5% within 10 days.

NOTE: Short sales are particularly risky because troubled stocks tend to be volatile
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