What Are Sell Short Market Tips for Traders & Investors?

List of 5 Includes the Basics with Explanations

Most traders and investors learn how to buy stocks and then spend most of their time looking for great stocks to buy and trade for a few days or to invest in for many years. However, as soon as a downtrend Market Correction starts, many traders and investors do not know what to do. They either hold and lose 50%–80% of their gains, or they just sit and wait hoping the correction will end soon due to missing vital information introduced in the list of Sell Short market tips.

There is a total lack of preparedness for downtrends, and missing key information within the list of Sell Short market tips can lead to large losses, anxiety, and frustration. For long-term investors, this can be devastating and can take years to recover.

Retail Traders need to learn how the downtrend behaves, why it moves differently than the uptrend, who Sells Short, and what strategies work. In addition, learning how to interpret indicators when stocks are trending down will decrease the risk of whipsaw trades, poor trade results, and an eroding capital base. Confidence deteriorates when there are continual losing trades or weak trades due to needing an educational foundation regarding the basics about downtrending markets.

Here is the list of Sell Short market tips:

  1. Tops
    Tops develop faster nowadays than even a few years ago. High Frequency Traders (HFTs) can create Sheer Cliff Tops™ that plummet double-digit points in a single day.
  2. Dark Pool Quiet Rotation™
    Dark Pool Quiet Rotation by the Giant and Large Funds is intended not to disturb the trend, and they do sell even while the stock moves up. However, as smaller-lot buyers who have lower capital bases slowly stop buying, the trend actually “bends” under the weight of the large-lot rotation selling. Rounding trendline patterns are more prevalent nowadays due to this condition.

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Trade Wisely,

Martha Stokes CMT

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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