Question 98—Looking for Shorting Candidates
Answer 4 Selection “Selling short stocks that are being upgraded by major analysts” is incorrect.
There are just as many methods of looking for shorting as for buying candidates. The key principle is to verify any idea using your own method or system. You may do something as labor-intensive as digging through industry groups or the 100 biggest stocks on the Nasdaq; alternatively, you may do something as simple as listening to tips, rumors, or downgrade news. Anything can provide grist for the mill—as long as you test all tips and ideas using your analytic method.
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