Lesson learned: If the charts tell you that the overall market is down and the short selling potentials are much higher than going long, just focus on shorting. Don’t go against the trend, you are just taking unnecessary risk if you do that.
As seen from the screenshot above, I go long on 2 stocks. I THOUGHT with bullish reversal signals, they will go up. However, I am going against the trend. True enough, the Dow go south again and my stop loss for my 2 long positions were hit. Luckily my losses were covered by my short position in Reynolds American.
Do take note that I am not investing. I am just trading these stocks. So I don’t give a hoot about fundamentals. I just find counters with the right candlesticks signals which can give me a high probable trade – in this case shorting them. I normally hold my positions for a few days only – swing trading.
How do look for stocks to trade, either short or long. Is there specific scanner that you use?
Cheers
@novice: I subscribed to stockcharts.com. I use the scanner and filter what I want.