Sunday, November 11, 2007

Shorting stocks to make a profit

This is the third week of a market down turn; I will post the return on the ETF’s I listed on the previous post. Tomorrow after close of business the results of the gains will be posted so far all are winners except for (2) losers. Another way to take profits in this type of market is to buy stocks on A %100 margin, buying undervalued stock with strong numbers and holding them
and shorting (cashing in) on a %15 loss or a %8 gain. You have to buy a basket of 10 to improve your odds of finding those that will go lower, and watch it daily for the ones that might go in the green, you dont make money on a rissing stock that you shorted. this is one those nice times when you make money using your brokers funds. You can find these by looking for stocks hitting new 52-week lows. Remember we have had 3 down markets this year so checking those periods will tell you about the rebound ability of the stock you are selecting.

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