Showing posts with label Short interest. Show all posts
Showing posts with label Short interest. Show all posts

Sunday, September 2, 2012

Lesson 11, Utilize short interest to capture big gains!

We have talked about how to make money on down market by short selling on lesson 10. With shorting, people borrow shares from brokers and sell them, but sooner or later they have to buy them back (cover). As a stock is trading down, many traders will go with the trend and short the stock. However, a large number of short interests may lead to short squeeze.