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How to Short Stocks - Tutorial Required From Shabbir

Discussion in 'Fundamental Analysis' started by monilhathi, Aug 30, 2012.

  1. monilhathi

    monilhathi New Member

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    Hi Shabbir

    I see a lot of shorting opportunities in the recent downtrend but I am a novice when it comes to shorting stocks. Can you help us with a step-by-step approach on how to exactly short stocks on ICICI Direct and ShareKhan? I have read the articles on shorting from you but really require a spoonfeed on this and 'things to remember' while shorting. It is not that I would enter in to shorting big time, but I can test it out with small amounts and paper trading so I can be confident in the future.

    Another related question, although not completely, is how do we identify short coverings versus fresh long positions in stocks seeing charts. I know volumes as one good indicator but am still not grasping a real life situation when I see live markets in action
     
    monilhathi, Aug 30, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    Shorting in the trading platforms is not something I do normally because I don't prefer trading in FnO or Options and shorting in cash market is more of a day trading things.

    On your other question, I would say that you don't need to be knowing if it is short covering or fresh long position because our strategy is to understand things with respect to pricing of the stock and not based on other parameters like who is buying (retail investors or FII or DII) or if they are covering their shorts or buying fresh positions.

    I hope I have made things clear but if you have slightest of doubt, do ask and that will help make things more clearer.
     
    shabbir, Aug 30, 2012
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  3. shabbir

    shabbir Administrator Staff Member

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    Also I have moved this thread out of Technical Analysis Forum
     
    shabbir, Aug 30, 2012
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