so you want to know when the best time to short a stock is what's the best
point to enter a short so everyone has their own theory about the best time to
short the best time to enter a stock long short whatever it is everybody has
their own kind of theory on it but my theory is that I like in short a stock
that has bad news that's already crashed down that is in a very bearish trend bad
news I'm not doing the shorter stock that's up real big because it's up
really big and I'm like well it's up one so it's got to crash at some point here
I'm going to short a stock that's crashing down already has bad news and
does not look good I like to use a little bit of common sense as well a
stock like Kroger I know that retail is hurting I know the market overall and
retail is not good the CEO comes out they say they're cutting the guy in
something is not good in the stock looking at Kroger I sorted this one last
Thursday pre market actually shorted pre-marketing I don't really trade free
market but it looks too good to not short I entered this short on Kroger
watching this this is a 5 minute chart it drops down from $30 in the morning
jumps all the way down here 27 80 so you can see here on the 5-minute chart pools
down here kind of find the bottom has a top here at 2786 and then 27 80 and I'm
like well it might reverse here I'm not sure I don't know if I want to get in I
could have entered here on the first 5-minute candle to make a new low which
have been about 2750 area but again I just was like okay maybe it wants to
crash I don't really know what's going on there but this was kind of the best
entry for me at least that I thought so after it had that pullback again it kind
of crashed it down really just have a lot of range there you know 60 cent
range there not a lot going on a little bit of selling and then see you on this
candle you get a lot of buying here but really doesn't move anywhere something
okay that's a good sign and then on this candle it's a very clear there's a lot
of selling it doesn't really want to move not a lot of volume so I'm like
okay at the top on this candle is at the 2760 area and then BAM the high on his
candles 2760 so I'm kind of watching that 2760 area to get in ended up
getting in there at 27 1958 so for me I saw the 27 60 area you know double top
right there so I gots a good sign so I ended up going short err 2758 and then
BAM it pulls all the way down here 26 dollars actually got some support there
26 is a good time for me to end up covering because like I said get that
double bottom as a $25.99 26 series so I'm okay that's a good time to cover got
some support there 26 is support so I ended up shorting like I said at 27:58
covering down here at $26 area great short there on Krueger's gives you idea
of why I shored it when I did had bad news it's crashing down there's a lot of
selling going on you can see how to double top there a lot of resistance a
lot of selling on this candle so I'm like okay if it can't get above 27 60
again as the obvious double top there that it's not going higher and again you
get a lot of selling again crashing down next candles crafts it down to 26 89 so
really nice move there jumping from 2750 down to 26 89 there so after that I'm
going to clear where is my stop going to be so if I introduced short here at 27
16 let's say it pulls back a little bit then it starts to go higher so then I
see this double top here which is at a 2784 area so that's kind of my area that
I would have covered for a loss so I'm kind of watching that 2780 area 30 cent
so if I got in at 2750 I'm going to look to cover around the 2786 if it can get
above this double top area and that's kind of my risk reward so I'm looking to
get in there and the 2750 area I know there's some support dirt when t7 so I
might cover at 27 so I'm kind of risking 30 cents to make 50 cents I have a good
feeling that it's once ago even lower because a lot of selling going on so
once it's broke through that twenty seven dollar area I knew this wanted to
go lower it was game on time to take profit as it's crashing down and that's
kind of the opportunity to get in would a lot of people say that it's better to
short at the top but you know a lot of times you just can't afford the top and
you have to look for opportunity as the stock is crashing this is for me a safer
bet because the stocks got bad news it's crashing it's not looking good a lot of
people just looking at sell looking to get out and that's kind of not a good
sign and you can see here it actually worked out amazingly if I would have
hold this one for a little bit longer that it crashed even further down at
open it only got up to 27 23 so I was safe there you know it's still good and
it kept pulling back 27:22 it pulls down here to 22
dollarz again so had to support the $26.00 area but never reached my entry
again so I really could have held this for a while if I wanted to but I took
profit early like always just because I want to take my profit and I was you can
see he never got back up to that high so if I got in there at 27 69 let's say I
loaded the boat up I loaded up with shorts there 27 60 and I played it safe
and it got back up to 27 80 area you know that open I'm okay I'm going to
cover because it might want to reverse but it never did and it ended up
crashing at the end of that day yeah 24 30 area so amazing shorts even more
amazing the next morning Kroger got down to $20 so a possible $7 move there yet
in short a thousand two thousand shares you make seven thousand fourteen
thousand dollars on a short like this how I like to short kind of my entry I
like to look for stocks with bad news look for resistance look for stocks that
are possibly trying to reverse I'm trying to get I'm not trying to just buy
at the bottom I'm trying to look for stocks at reversing it got down to $27 a
balance off $27 that's kind of my favorite entry kind of my favorite short
looking for stocks that are crashing down stocks that have bad news
socks that have resistance on the bounce so everyone has their own theory
everybody has their own kind of idea so everything that I say take it with a
grain of salt you know you kind of figure out over time what works best for
you but this is what works best for me I like the short stocks that are crashing
down I like to short them on the bounce once I kind of see that there's that
they're going to go lower and when you get a double top when a stock doesn't
want to go higher than the previous 5-minute candle that's obvious
resistance there's obvious something going on somebody's selling and the
stock is probably going to head lower there from that sign so if this candle
would have went higher if I'd have seen this 5-minute kanto jump up here to 2780
area I might have shorted because they're like okay there's a resistance
at 27 80 but if it breaks through 27 80 I'm not going to shore it I'm not going
to be like well it's running up but it is an obvious downtrend because that
could be the point that ever starts to bounce back it can be the point that it
starts to turn around and start to go higher so really going to be careful
when you're shorting the downside on shorting is that the the risk really is
limitless say if you go short here on Kroger than
all of a sudden Amazon comes out want to buy it at $50 it you're stuck and you
got to sell it $50 and cover there it's not a good not a good play so you really
got to be careful to take profits fast and that's kind of how I shorts
looking for these stocks that have bad news and kind of this big sell-off when
they show weakness and I show resistance ahead and kind of looking for those
little areas of support resistance areas to get in that I know that that I know
that my kind of stop-loss area is close by and get an idea of when I might exit
not just trying to jump in here on the first drop I'm not trying to jump in as
its office is crashing really with no idea or game plan so it's all about
entering Detroit with the game plan and I've ahead of time knowing what you're
going to do when the stock starts to reverse if it starts to reverse I'm in a
twenty seven fifty I know that twenty seven eighty is going to be kind of my
stop-loss and that gives me an idea ahead of time so I'm not going to just
jump in here and deck oh shit it's reversing what do I do I don't really
know when I should cover because I don't have an idea and have a game plan if you
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