This article contains a quick introduction to shorting shares then presents my favourite strategy for finding shorts. I then put this strategy to the test on historical data before finishing up with some final tips.
As a trader, there’s an important lesson to learn early on, which is that trading losses are part and parcel of playing the game. They are unavoidable, since no-one can predict the markets all the time and no-one can win on every single trade. In fact, many traders have found success by being right just 30-40% of […]
Netflix and Google helped contribute to some big gains in the technology space last week. The Nasdaq had one of it’s best weeks of the year, closing higher by 4%. It’s tempting then, to take some cash off the table since the index is beginning to look extended on a short-term basis.
Most commentators tell you to cut your losses short and let your winners run. This is the ‘golden rule’ of trading. If you do this, only this, and nothing else, apparently, you are bound to make money. (So long as your risk settings are also right).
Lost some money last week by not following the rules. It happens. The important thing is to carry on. Over the weekend I have been working on some new strategies and fine-tuning existing ones. I have some exciting ideas to share when the time is right.