| Investing in the stock market can be incredibly | | | | that is caused by a lot of short-sellers rushing to cover |
| challenging to the average individual investor and | | | | their positions when there are too few shares |
| professional investor alike. One form of stock market | | | | available. If a company doesn't have a heavy |
| investing it seems to confuse just about every kind of | | | | capitalization and you have to rush out to cover your |
| investor is short selling. | | | | position, there may not be stock available to purchase! |
| Though most people understand the concept of short | | | | Keep that in mind. |
| selling, many become confused when you start talking | | | | Next cover your positions at the end of the week. |
| about short selling during a bull market, but that's | | | | Why is this? During regular bull markets, favorable |
| exactly what I'm going to talk about in this article today | | | | news can filter out over the weekend that can cause |
| because there are quite a few ways for you to make | | | | the stock to jump in price considerably at the start of |
| substantial amount of money during bull markets with | | | | the next trading week. You don't want to wait until |
| short selling even though this sounds completely | | | | after that news has come out over the weekend and |
| counterproductive to all common sense and all | | | | then scramble to cover your position in an increasing |
| investing strategies! | | | | market on Monday morning. It's better just to cover |
| I'm not going to lie to you. Suggest to someone that | | | | before the weekend if at all possible. |
| they make short selling a cornerstone of their bull | | | | Next don't sell short stocks that have recently made |
| market strategy and they'll look at you like you've lost | | | | new highs or all-time highs. I know you'll be tempted to |
| your mind. But you haven't lost your mind at all, you're | | | | because it seems logical that a stock that has risen |
| just cagey! | | | | high will take a period to settle back down a little. But |
| The fact of the matter is, even during raging bull | | | | during a bull market all bets are off and stocks can |
| markets we will see periods of decline. People think of | | | | continue to rise past all-time highs without gasping for |
| this as the stock market gasping for breath after a | | | | breath as it were. It's much better to wait for definite |
| long run up. It's these little gasps or downturns that | | | | signs of weakness after all-time highs before jumping |
| offer great opportunities for selling short and making a | | | | in with a short position. |
| quick buck or two; here and there. | | | | So there you have several ways to both make |
| There are several rules that you should follow when | | | | money selling short during a bull market and covering |
| selling short in a bull market that can help keep you | | | | yourself if something goes wrong while you are selling |
| from getting clobbered. | | | | short during a bull market. As with all investment |
| First sell only heavily capitalized stocks that have very | | | | opportunities, be sure to do your own due diligence and |
| low current short interest. These stocks are less likely | | | | proper analysis before making any investment |
| to get hit by a short squeeze which is a sharp rally | | | | decisions. |