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reddingrunner (95.51)

Risk Free Short Selling

Recs

4

June 05, 2014 – Comments (4) | RELATED TICKERS: TSLA , ISRG , DDD

I've never shorted a stock, and I've avoided shorting even in CAPS.

But I'm curious if my system, which works pretty well on the long side, would work for shorting as well.

Other than picking the lowest ranked stocks in my system, I pretty much don't know what I'm doing at this point, but since it's only CAPS, there's no real risk.  

If I get this figured out maybe I'll play around with a little bit of real money someday.

I do like the hedging aspect, just in case the market "corrects" (Note: "corrects" is what the market used to do from time to time in the old days.  Some very old people believe that it might even happen again someday).

At any rate, I came up with ten candidates.  I'm a little bothered that 4 of them are biotechs since biotech is more of a gamble to begin with but, like I said, it's not real money.  I was surprised that ISRG made the list.  The biggest name is TSLA.  I was also surprised to see a 3D print company and a well-known organic food company make the list.  

Several big name internet stocks came up just short of making the list: Z, YELP, P.

The ten that did make it, added to CAPS this evening as underperforms:

ALNY, BNNY, CLDX, DDD, FEYE, ISRG, MSG, THRX, TSLA, VRTX 

BNNY got clobbered today so that's a bummer but THRX was up big.

Let the games begin! 

4 Comments – Post Your Own

#1) On June 05, 2014 at 3:52 AM, ultrasounddoc (< 20) wrote:

Any hints on your long side picks?  I like them.  Thank you

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#2) On June 05, 2014 at 10:38 AM, reddingrunner (95.51) wrote:

It's all quantitative.  I go almost completely by the numbers but occasionally I'll turn down a stock with good numbers because I don't feel comfortable with it.  If I don't feel comfortable with a stock I tend to sell it too soon.

 

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#3) On June 06, 2014 at 2:16 AM, reddingrunner (95.51) wrote:

not to be impulsive or anything but I think that just one day was enough to show me that biotech stocks are not good candidates for shorting.  too much uncertainty, too much volatility.  i'm not surprised, i'm just glad it's not real money.

 

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#4) On June 16, 2014 at 1:14 PM, reddingrunner (95.51) wrote:

OK.  THAT was educational.

After two weeks the stocks I shorted were up 7% vs +1% for the index (the top stocks on the same screens were up 3.5%).  Do I dare experiment with BUYING the worst performing stocks on my screen? 

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