Comment on Single Candlestick patterns (Part 1)

sudeshnabora commented on 08 Sep 2015, 07:58 AM


September 8, 2015 at 7:56 am
First of all , I want to thank you for this wonderful lessons. It is so clear and easy to understand for a complete beginner like me.
Now, coming to my problem . I am not confident about the shorting technique. Will you please clarify my doubts.
Say, I want to short a stock X which is currently trading in a bear market at about $100 .
I however, don’t possess this stock . So, how do I sell something that I don’t possess?
Then, when I am confident that this is the appropriate time to buy back (when the trading price is less than $100) , I buy it back. How do I buy back a stock which I never had?
Moreover, the stoploss concept for shorting – does it mean that in case of reverse trade, the stoploss value is the upper limit at which I should buy back with some loss?

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