Day Trading - Short
What does “Short” mean in day trading?
Short is a method of selling a stock even if you do not own it. When you short a stock your order goes in as a sell. Profit is made if the stock goes down and you buy it back for less. You make the difference minus commissions and fees involved in the transaction.
Short = Selling a Stock then Buying it back lower.
Negative Day - Dow Jones Industrial Average &
NASDAQ COMPOSIT are both Negative as are the futures.
How To Play Stocks Short
The candlesticks for the stock below show a downward trend for the time frame being viewed and played.  Typically day traders wait until the downward trending stock jumps to the moving averages and then shows signs that it will continue to go down. There is no play below until a few red candlesticks appear and a bounce of the moving averages occurs. If this does not happen the safe trader looks for other stocks trending downward that show a similar pattern.
The Short Squeeze occurs when traders that are short cover their positions causing a downward trend to suddenly spike. Looks like one in the chart
Trading Psychology Upward Trend
1. Never go short if the stock is at the high of the day as the laws of probability are highly against your move.
2. Never short if the stock is at the low of the day unless you are sure it is going to continue to drop.
3. Never stay in short overnight as short is a more dangerous position than long.
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