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Re: phrantic post# 16863

Saturday, 05/22/2010 1:15:09 PM

Saturday, May 22, 2010 1:15:09 PM

Post# of 47295
First to short a stock you have to have a margin account at your broker. Second the stock must be shortable.
http://www.interactivebrokers.com/en/trading/SearchShortableStocks.php?cntry=usa&tag=United%20States&ib_entity=llc&ln

Other then these things, there is nothing else special needed.

Basically you look for the reverse of all my posts about buying a positive move. But you look for TA indicators turning negative and negative chart patterns.

Negative chart patterns are Descending triangles, double & multiple tops, heads & shoulders, rising wedges, and gaps below!

When you place a short order, your broker opens a loan to you at the price closed. This transaction is taken from your margin account and charged a fee. When you close your short order the broker buys the stock, to cover your short and settles the profit or loss, with the margin fee. So basically the only difference between a short order and a normal order, is the trade cost you more money.

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