I had just completed reading William O'Neil's book- "How to make money selling stocks short". Its a wonderfully written book whereby the author explained the psychology behind making short selling sales.
In the book, O'Neill explained and showed readers the correct point of sale for short selling and explained that what is obvious in the stock market often does not work. For example, the initial break-down of stocks on high volume might not be the best instances to initiate your short-selling positions. The area which all short-sellers congregate would created a floor for the stocks and would help bounce up the prices instead. The secret is to wait for the first wave of early shorts to be run in (stopped out) and to wait for the bull bargain hunters to step in before re-initiating the short selling positions.
I searched the Internet and found that someone had actually did up a slide of an anatomy of short selling which is kind of the same as what was found in William O'Neill's book. This model (click on chart to enlarge) would be extremely useful for all of us. Here you go:
Perhaps you should use this model to look up stocks that are having traits which are exhibiting this type of "behaviours".
In the book, O'Neill explained and showed readers the correct point of sale for short selling and explained that what is obvious in the stock market often does not work. For example, the initial break-down of stocks on high volume might not be the best instances to initiate your short-selling positions. The area which all short-sellers congregate would created a floor for the stocks and would help bounce up the prices instead. The secret is to wait for the first wave of early shorts to be run in (stopped out) and to wait for the bull bargain hunters to step in before re-initiating the short selling positions.
I searched the Internet and found that someone had actually did up a slide of an anatomy of short selling which is kind of the same as what was found in William O'Neill's book. This model (click on chart to enlarge) would be extremely useful for all of us. Here you go:
Perhaps you should use this model to look up stocks that are having traits which are exhibiting this type of "behaviours".
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