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Good Stocks for shorting

Thank you whizzer for sharing. I also had an experience whereby I oversold.  I thought I had this no. of  lots and after the trade was done, I went to double check my statement and realised that I had oversold.  I immediately went in to buy back the shortfall. Luckily, I did so on the same day. So, my only loss is the extra brokerage fee ie making slightly less profit.  I then called my broker and he told me that I had done the right thing.  Otherwise, I would be in the same situation as yours ie they will buy from the market at 2 bids higher than the last price done.

 

Hi Jessie, just to share,

i experience shorting once, by mistake (forgot to click cpf and sold in cash instead). I later found out i can correct the mistake if i call up at 5pm but i didn't. only realise the mistake when they called me and told me i did not have that stock in cash.

It was an expensive lesson, because to cover the quantity I didn't have, they buy back for me three days later at the highest price or closing price plus two bits (something like that).

Anyway its not wise to short unless you are very sure its a bear market.

 

Thank you Singaporegal, Savysamyeo and shplayer for your comments and sound advices. As you all may know, I am a newbie and trying to learn and pick up trading skills.  Till now, I  buy shares only if I have sufficient cash/cpf to pay when due. I have done contra a few times.  To play safe, I have set aside some cash in FD.

 

jessie,



If you think 'shorting' is an easy way to make $$ from the stock market, I will advise you to think again.



Unless you are an 'old hand' (no disrespect intended) at the game, shorting is a very risky game. You are constrained by time ( sell and buy within the same day - unless you borrow stocks, which will have added costs to it). Even if the price is volatile, it may not fluctuate enough to cover your trading costs.



A safer way is to contra (buy/sell).....where you buy a counter you believe is on an uptrend and you have up to 3 days to sell. Here again, it is quite risky. At times I do contra.....but only if I am prepared pick it up should the market not turn out the way I expected.



Up to now, I have not found a way to make easy $$$ from the market. Anyone out there who has a tried and tested way,,,please share your techniques.



From my personnal experience, to make $$$ from the market, you need to put in effort......in doing your research, formulate your investment strategies (to suit your risk profile), be disciplined entry/exit timing and patience. Even with all this effort, I don't think anyone can claim to be right 100% of the time....but it certainly improves your chances as a small fish in an ocean of sharks ( big boys who manipulate the market).



Good luck with your investments.

 

Dear Jessie you seem quite a candid person:


"How does one spot a potential stock for shorting ? What are the critiera/look out signs ? I have never done shorting and is afraid to do so. "



Do you really want to be a shortist? It takes a particular and ruthless frame of mind and can be a very emotionally wracking experience. Take care here  if you are not the rough and tumble type shorting takes many expensive lessons to master, and you may not survive the first few. Regards.

 

Oh yes... high volume stocks are also important. You wouldn't want to short a counter only to find that no one wants to trade with you. 

 

I think volatile stocks are good for shorting. 

 

How does one spot a potential stock for shorting ? What are the critiera/look out signs ? I have never done shorting and is afraid to do so.

 

I agree bout SGX but I don't konow bout the rest.

 

    I think M1and NOL are good candidates. SGX could be next.

 

Can anyone tell me which stocks are good for shorting?