- Products & Services
- Knowledge Base
AUBURN, WA, June 23, 2013 /24-7PressRelease/ -- TechniTrader(R) the Gold Standard in Stock Market Education "CEO Writes Weekly Stock Dicsussion Using FreeStockCharts"
Martha Stokes, CMT and CEO of TechniTrader(R) writes a Weekly Stock Discussions using the Worden charting software FreeStockCharts.com for Stock Charts examples. Charts are not included in this announcement but are in the Weekly Discussions.
The Weekly Disccussion below is titled "Selling Short Tips Pros Use."
"The sell side of the market aka the downside, is not the same as the upside. One of the big reasons is that when a market is moving up on a long term aka primary trend, ALL 9 Market Participant Groups will be buying stocks, which sustains the trend far longer than the downside. Bull Markets tend to last 10-15 years where a Bear Market historically lasts 1-3 years. This is an important fact to keep in mind when preparing to sell short. The first step is to determine the duration of the correction.
Is the correction on the:
1. Short term trend
2. Intermediate term trend
3. Long term trend
Once you have established what trend is correcting, based on whether the short term, intermediate term, or long term trend is over extended and too steep to sustain, you can then start to establish how price will behave based on the following:
1. Which market participants will be selling for profit
2. Which market participants will be rotating out prior to the top
3. Which market participants will start the downside selling by selling short
4. Which groups will have stops taken out which will increase the sell side momentum
5. Where will price bounce due to technical AND fundamental support levels
All of these factors impact how price moves to the downside. In addition instead of 9 market participant groups on the sell side, there are far fewer. Only 3-4 groups actually engage in selling short for quick profits. Some market participants are unable to sell all their holdings because of charter or trust requirements. So instead of selling for profit, they will use alternative trading instruments to mitigate their downside risk. These are usually derivatives but can also be opposing trading assets and asset classes.
With only a few market participant groups actually selling short, and with more aggressive price action due to the elimination of the sell short uptick rule, price can move with much more sudden momentum due to voids.
Voids are periods when volume evaporates and when this occurs, gaps and long candles running very fast form on the downside. All of these factors impact selling short. If you are new to trading, selling short takes more time to learn.
If you only want to trade the upside, learning the sell side is crucial. If you understand how and why price behaves the way it does and if you recognize the foot prints of different market participant groups, then you will be better able to identify tops and bottoms long before the final peak or trough. Learning the Sell Side of the market is an essential trading skill every retail trader needs to learn."
To view the Weekly FreeStockCharts Discussion by Martha Stokes, CMT each Friday go to http://technitrader.com/weekly-stock-discussions/freestockcharts/
To have access to Notes on specific Charts posted by Martha Stokes, CMT in the Freestockcharts charting software program go to "freestockcharts.com" and click on "sign up" then create a "sign in" using your email. Then go to "Profile" and enter you first and last name on the lines provided, and be sure to check both small boxes allowing others to search for you. Then go to "Friends," then "Find Friends" and search for "Martha Stokes, CMT."
TechniTrader is a stock market educational company devoted to providing quality educational programs for traders at any level, from beginners to experts. For further information, please contact us at (888) 846-5577.
# # #