How can I find current short interest (same day). Also, how does a short squeeze form? Is it by having longs sell at a limit that is high and forcing shorts to buy at a premium? How is this done quickly to trap the shorts?
I am a new trader, please someone explain this to me.
Thanks for responding Joe, but NASDAQ gives the monthly short interest. I would like the short interest on any given moment ... is that possible? I mean I can check level 2 quotes to check direction the stock should move.
However, if everyone would sell the stock at a limit price like those people suggested earlier then the shorts would need to cover I guess. The reason for that is the broker is required to have those shares to sell and can not borrow. Then, I would buy and hopefully burn the shorts.
I am sure there is a way to find the short interst out at any given moment. This done through a network and it is probably proprietery and expensive. Market Makers usually short naked creating an artificial float. The only way to squeeze shorts is when a market maker or makers start buying there own positions or if there is a surge in buying causing a sudden price rise thus causing panic and shorts cover fearing margin calls. If anyone is margined and long they will liquidate and sell fearing a margin call. This works both ways...
You have to be a registered market maker, you need a licence. You can also trade through a trading firm. You set up an account deposit the 250,000 and make a market in the stock. Personaly it's way too much risk. You should just trade with E-Trade or Brwon & Co. until you get good at it. My friend actually has a trading arrangment with e-trade and guys go to him and trade through him, he then sends order flow to e-trade. I think he pays .07 to trade 50,000 shares of any NASDAQ stock.. He then marks this up to his traders..
Does he control a certain stock or is it any stock?
What is the best way to gain capital? Momentum trading or investing and working at a job?
I have a electrical engineering and physics degree but no job yet ... just graduated. I thought I would try daytrading, I was doing well until Monday I bought STKR and sold at market when MSNBC announced no contract .... I lost 15%. I could have lost 50% I was lucky.
My goal is to make 5% a day ... that is doubling my capital in 3 weeks, is this feasible?
Best way to gain capital is to trust in yourself my friend. YOU, are your only friend in the market and asking others for advice is quite dangerous. For starters I advise you read, Come into my trading room, Best trading book out there. Just check amazon.com and type those keywords. But regarding investment style that's up to you, momentum traders have to be very fast, they tend to be young and good at video games. Im very good at it myself, but others may prefer a more fundamental approach, that's something that needs to be decided for yourself. There are hundreds of styles, kind of like martial arts, so your upbringing, your soul need to mesh with the style you have adopted.
easiest way to make 5-10% per trading day is to play the dead cat bounces. I was thinking MAGS might be a good candidate, but it looks like this cat is too smelly to bounce. On the other hand, there's an easy 10% sometime next week in IGT.
Rode this puppy from 10 to 38 and then sold
Afraid to short @ 38 given the small float and the effects a positive news event or terror attack could have on the price....having said that reloaded 10,000 shares long near the close on friday.....check out any TA book ABC correction ended friday.....Wave 3 about to start....just wait till the earnings news ignites a short squeeze....60 bux by june
dear mr genius millionaire trader
thanks so much for letting us wannabees know
about your genius skills in trading
seems like you are in top 1/1000 %
as you bought at very beginning of breakout and sold close to top
do you mind if I as humbly for you to post a link as to when you posted your buy @ 10 and your sell at 38 ? your truly ....