Chuck Hughes: 3 Keys to Successful Short Trading

Short trades profit as stocks or EFTs decline in price. Short trades can greatly increase your profit opportunities and open up a whole new universe of trade possiblilities. Normally short trades are considered high risk as you incur almost unlimited risk if you are short a stock that continues to rally in price. The key to successful short trading is to only take 'limited risk' short trades. Learn the three keys to successful short trading:
1) Only take short positions in stocks or EFTs when the major price trend is down to prevent 'whipsaws' trades
2) Only take limited short trades
3) Confirm the price down trend with the On Balance Volume Indicator

Category:

Education

Tags:

• chuck
• hughes
• stocks
• successful
• short
• trading
• ETFs
• price
• trend
• on
• balance
• volume
• indicator