Hi to anyone that's game enough to read this thread
Now, i've just been thinking, and this is from a relative noob only:
What do you think are the differences in risk between day short selling and medium term short selling? By 'medium term', i mean anything from overnight to a few weeks.
It just occured to me the other day that day short selling is highly risky. You would have to set strict and minimal stop-losses. Am i wrong here?
The obvious or 'most logical' strategy (and, we all know the markets are not 'logical', so please don't correct me) would be to wait until a stock reaches resistance and then activate your short sell, with the intention of holding it for a few days or a week or two.
Eg. (this is for example purposes only), NCM reaches 32.50. Set buy point at this price (which is actually the 'sell' point), but wait to see what's happening in market. For example, if all other indicators point to gold not being bullish, it might be a risk worth taking?!
What i am trying to say is that it might be a better strategy to wait until you think a stock has reached it's resistence level after a rally (but, you would have to evaluate that rally), and then short sell for more than just one day.
What do you think?
Day short selling versus meduim-term short selling?
Disclaimer: this is purely an opinion / theory-based question. I am not asking you to reveal your strategy, or recommend or deter me from buying NCM. That was purely used as an example