My experience Of Short Selling in a Strong Market

Short Selling in a Strong Market

The word "Short selling" itself tells you for a reason - to be very quick “short”

All the investors in stock market often experience it that any stock that climbs up often fall faster than climbing up. Well it happens for a few reasons. The first main reason is that generally to move the stock up lot of efforts are required like high volumes and on the other hand if price to come down the buyers simply need to remove the bids and price will come down.

Another reason is that owners of the stock can do panic selling which make stock to come down faster Its very important to short stock in uptrend lots of tricks are required to short selling any stock One good method of shorting in stock market is that use of technical analysis , with the help of this you can draw trend line studies which tells you where are support and resistance lines so with the help of technical analysis one can do short selling

Most of the times short selling is done during trading hours only where investors sell at higher levels and cover it at lower levels. Last Monday in my free share market tips newsletter, I highlighted RELIANCE INDS as a weakened. Stock which expecting to be completing a minor bounce. This created a potential short sell position to be played as a day trade in spite of rising Nifty.

RELIANCE INDS has been prone to gaping a number of times lately, saving it from  being an ideal swing trading stock.

A small rising trend line provided the trade entry, which was a downside break of Rs. 1000

Next day stock broke it trend line support of Rs.1000 , Reliance inds fell sharply, falling more than Rs. 20.00 in only 15 mins. that was a very nice intraday call... which lasted only for few mins.

Well in short you can short sell in stock markets, but for that investors need to be quick and take profits when you have them.

After that ,then get back to your trading list and find some trades.