This is a method that I learned from IBD. For more great trading methods, check out their investor education section.

If you have read into the CANSLIM method of trading, you would know that one of the keys to making a lot of money going long on a stock is to buy it as it breaks into new highs. When it comes to selling short, it would make sense that you would short when the stock falls to new lows.

Unfortunately, this is not the case.  The most profitable way to short, is to short when it isn’t obvious.

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