hey guys i know how a stop loss is working on a long postion but my question is how a stop loss is working on a short postion. lets say i shorted a stock at 50.00$ and i want to exit my postion when the stock hit 50.50$ so do i need to set a take profit order or a stop loss order?
%% Thats less than 1% net; i would give it a bit more room to run. but that is with stuff like TSLA trends, or worse/discretion.4th quarter + 1st quarter tend to be strongest for stocks. so watch out for lightweight trash flying up/cyclone season.
If you are a beginner, you can greatly increase the odds of success by avoiding shorting alltogether and by not day trading. Read this somewhere, seems like a good advice. This is for the more experienced traders. I see a lot of people bragging about shorting... Guess it's an ego boost, cool thing to do. A great way to lose money.
I'd say this is too general. I would add that if they expect to day trade small-cap stocks or short them, that requires experience. If you focus on liquid names like broad-based ETFs or NASDAQ/S&P 100 stocks, I see no reason why you can't try either. Whatever works.
No, I think its more fundamental than that. New traders often just cannot see a chart and a desired projection of price movement "upside down" so they find it very hard to sell high, buy low. Even on liquid markets and those where there's no inherent positive or negative buoyancy, like major forex, they can't readily do the mental flip from wanting prices to go up. That's why we've had ron's simple question, on something he just couldn't get past. For the experienced trader, shorting is no more risky than buying.