Dear Friends,
As I mentioned in my first post, anytime I call it a Trader, please consider investor also and as well trading as investing. So don't get confused if I call it a LT Trader- There are no LT Traders in Practice. Every one is Investor in Long Term. So now comes the question how to sell short in a security which is not in futures? Friends here I'd like to give you two insights. You may choose any one of them as per your convenience. Even these things, what I am going to suggest you, are not 100% fool proof, still work many times well in the market. One of them is selling short in Nifty Futures and thereby being in the markets on bearish moves. And the other one is selling short in any of the weak securities which is in Futures, which belongs to the same sector of your cash stock. Say you got stopped in cash market in a stock belonging to software which is not in futures, then try catching some weaker stock of software in futures to sell short. As I told you earlier, sometimes this also might not work, because the markets might go strong and the whole sector also could be strong,where you got stopped. But in such cases, friends, nithing to worry. If the whole market and the whole sector is strong and your stock fails to move, then definitely there is something wrong with that stock So you may better leave it. No regrets. And start making analysis why you chose that stock for investment, which failed to move, despite a good move in Index and the whole sector- just to avoid future mistakes.
Hope this gives you some clarification over the doubts of reversing your long trades in cash markets.
Will come back to you soon to continue our topics. Meanwhile pl. post your doubts, if any.
Thanks and happy practicing TA
AJAY
As I mentioned in my first post, anytime I call it a Trader, please consider investor also and as well trading as investing. So don't get confused if I call it a LT Trader- There are no LT Traders in Practice. Every one is Investor in Long Term. So now comes the question how to sell short in a security which is not in futures? Friends here I'd like to give you two insights. You may choose any one of them as per your convenience. Even these things, what I am going to suggest you, are not 100% fool proof, still work many times well in the market. One of them is selling short in Nifty Futures and thereby being in the markets on bearish moves. And the other one is selling short in any of the weak securities which is in Futures, which belongs to the same sector of your cash stock. Say you got stopped in cash market in a stock belonging to software which is not in futures, then try catching some weaker stock of software in futures to sell short. As I told you earlier, sometimes this also might not work, because the markets might go strong and the whole sector also could be strong,where you got stopped. But in such cases, friends, nithing to worry. If the whole market and the whole sector is strong and your stock fails to move, then definitely there is something wrong with that stock So you may better leave it. No regrets. And start making analysis why you chose that stock for investment, which failed to move, despite a good move in Index and the whole sector- just to avoid future mistakes.
Hope this gives you some clarification over the doubts of reversing your long trades in cash markets.
Will come back to you soon to continue our topics. Meanwhile pl. post your doubts, if any.
Thanks and happy practicing TA
AJAY