How to Short the Market — the Right Way — and Maximize Profits

by | Nov 10, 2021 | Market Outlook

Inflation in the stock market is real — I’ve been driving this point home for months now… And Wednesday morning’s Consumer Price Index data was the final nail in the coffin.

Now, the Federal Reserve is going to be forced to capitulate at the worst time, stop tapering faster than planned, and raise rates earlier and more aggressively than it wanted. And that’s going to smash the growth of the economy for some time. 

However, that also gives investors a lot of good opportunities to short the stock market in November 2021. 

But I’ve been noticing a ton of new traders don’t understand how to properly short the market, and they end up shooting themselves in the foot…

The No. 1 error I see these guys make is when a stock is running up, they assume it doesn’t have any more legs. And then they try to sell it short.

That’s the absolute worst possible reaction you can have as a trader — but I see it happen time and time again. 

You want to fade the weakest stocks that are going down, not the strongest. Traders should buy strong stocks on a dip and fade the weakest ones during a market rally — unless there’s a major sector change.

The reasoning behind this is the investors that bought five days ago are still going to hold onto their positions… Whereas the traders who are short a stock are going to continue to unload their positions. 

During a volatile market like this one, shorting the wrong stock could blow-up your account.

 And right now, WealthPress Senior Strategist Roger Scott and I found some stocks to short the market in November 2021 that are worth watching. 

How to Properly Short the Stock Market in November 2021

However, before we jump into those stocks, there’s something else important about shorting the market in November 2021 that traders need to understand…

If a stock looks overbought to me, that doesn’t mean I’m going to make it my next short trade. It means that I just wouldn’t buy the stock at this point, though, I might consider selling it later on. 

If a stock reaches a price point it’s never hit before — that’s when you start paying attention. 

BUT you still can’t short it yet until you see it’s not going up anymore — you’ll get shredded if you don’t since stocks can theoretically go up infinitely.   

When it comes to shorting, there are different levels of things you need to do or watch before you can do it successfully.

So with that said, Roger and I have a list of stocks worth shorting, and the No. 1 stock to never short…

Check out the video below to learn more about shorting the market in November 2021, and my Money Flow Elite pick that’s skyrocketing.

Send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.

WRITTEN BY<br>Jeff Zananiri

WRITTEN BY
Jeff Zananiri

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