1. After Market correction is over, one has to move from the shorting stocks to the stocks that are consolidating like FOSSIL AND DOLLAR TREE that are above the 30 day moving average. Somehow, I lost the habit of buying stocks. One has to switch or the gains made in shorting will be soon lost.
2. holding margin money overnight is not a good idea. Unless one is sure the next the the stock will moved in desired direction.
3. After correction if one needs to short then it is advisable to be half the money short and half the money long on good stocks that are consolidation. Completely being short after correction in the market like SINA, that moved from 80 dollars to 111 now is a 30 percent move. Also this stock has a graph like a commodity, highly volatile.
These kind of graph one should not hold overnight. It moved now 6 days in a row, in the upward direction. That is good dangerous to short these stocks.
Look at the graph, if the stock has these one directional bias, like moves in one direction for too long, then if you are shorting or buying in the opposite direction is a danger. If you are doing with margin money it is even more dangerous. All my profits from last month vanished.!!!!!
Also had to keep a 7 percent loss cap...
Lot of blunders.
2. holding margin money overnight is not a good idea. Unless one is sure the next the the stock will moved in desired direction.
3. After correction if one needs to short then it is advisable to be half the money short and half the money long on good stocks that are consolidation. Completely being short after correction in the market like SINA, that moved from 80 dollars to 111 now is a 30 percent move. Also this stock has a graph like a commodity, highly volatile.
These kind of graph one should not hold overnight. It moved now 6 days in a row, in the upward direction. That is good dangerous to short these stocks.
Look at the graph, if the stock has these one directional bias, like moves in one direction for too long, then if you are shorting or buying in the opposite direction is a danger. If you are doing with margin money it is even more dangerous. All my profits from last month vanished.!!!!!
Also had to keep a 7 percent loss cap...
Lot of blunders.
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