Selling ('shorting') a security or stock is a concept that sometimes seems less obvious to a novice as a means of making profit. In truth, one can often make money even quicker in a falling market, simply due to the fact that fear seems to be more of an motivating factor than desire. Fear also seems to perpetuate a downward trend, it seems to feed on itself until traders rationalise the intrinsic value of an asset against the current perception, and bring stability or reversal to the trend. It is worth examining historical charts to look for the general behaviour of falling markets when they ultimately stop falling or reverse.

The rules governing selling are exactly the same as for buying, only the other way round. A trader will normally look for an up trend breaking, confirm that it is substantial, and sell when the index normally 'bounces' off the lower level of the up trend. The normal practice is to set a stop at the previous high point, which if reached again, tends to indicate that the fall will not occur. This 'bounce' is usually associated with dealers protecting their previous 'long' trades. They sense that the market may be dropping and take measures by selling short. It must be stressed that the temporary 'bounce' might not happen at all at times of panic, the index might free-fall with little or no demand from buyers.

As with buying, it is important to try and distinguish between a trend reversal and a 'bounce'. The bounce can be seen as a reaction to the newly perceived direction, it is temporary and followed by further movements in the initial trend direction. The peak of the small bounce shape is often a good point at which to set a stop loss.

An excellent method to follow when the markets might turn downwards or even crash is to follow the bad aspects between the Sun and Jupiter. The markets normally drop to a varying degree on the dates of the oppositions and squares.

It should be noted that, if the market falls it cuts through the various moving averages (as well as the moving average 'crossovers' that occur when charting the down side), the fall is unlikely to reverse again in the near future. In addition, if this occurs on one of the above sets of dates, you can be fairly sure that a reversal has occurred.

Short selling is both fairly risky and lucrative, and can be done through a broker on options, futures and shares directly. Because of the risk, I strongly recommend that you use a planetary transit-calculating program to add bias to your decision-making at times when you enter highly speculative trades. Even if you don't 'believe' in Astrology, it is always nice to know that you are conforming to its general rules for that moment in your life anyway!

Please click here to download the 'Lucky Days' program, which informs you of both the favorable and unfavorable dates when making such decisions.



 Use your daily astrological aspects to choose the best days to trade!