It’s always interesting to me when an inexperienced trader says, “I wish I could short.”
They think it’s gonna be a solution to their struggles. What they fail to realize is that the winning equation is the same, whether you go long or short.
Table of Contents
The Big Picture
It started on Tuesday (August 25) when someone posted in chat that Picard Medical, Inc. (AMEX: PMI) had cheap locates.
What does that mean? It means there are shares available to short, and the borrow fee is low. It’s every short seller’s dream.
In chat, that kind of talk is people trying to pass on “cheat codes.”
Now, there is nothing better than when people come into a chat room and say short an uptrending stock. Guess what happened…
PMI, 8/25/26, 5-min candles, afternoon short squeeze
From the time that post got dropped in chat, PMI spiked nearly $3 a share. Absolutely beautiful for longs but a nightmare for shorts.
Cheat codes are the best way to trade, right? (That’s sarcasm in case you missed it.)
Even after seeing that, someone posted “wish I could short” in chat.
My question is…
Why? Why does short selling sound like a solution? Is it just magical? Like, you automatically know the top of a stock?
Here’s the truth about going both long and short. To be successful, you have to…
Buy Low and Sell High
If you’re shorting, you’re still buying low and selling high. So, if you think short selling is some magical dark art, it’s not.
If you think short selling is a solution, why can’t you buy low and sell high on the long side?
Do you really think you’re going to magically know how to buy low and sell high just because it’s on the short side?
Now, if you’re chasing all the time, guess what? Short selling sounds like a great solution because…
You’re Buying When You Should Be Selling
How about you quit chasing, instead? That’s the solution. Quit buying when everyone else is selling.
Listen, if you’re always buying the top, short selling is NOT the solution. What should you do? Start trading patterns instead of chasing all the time.
My Take
If you can’t figure out how to buy low and sell high on the long side, why do you think you’d be able to buy low and sell high on the short side?
Instead of believing this pipe dream, focus on better entries. Focus on chart patterns.
Watchlist
Cre8 Enterprise Limited (NASDAQ: CRE) spiked in premarket trading yesterday (August 26) after it announced a record number of customers.
The StocksToTrade Breaking News guys had it early and noted our favorite chat guy was involved. Hats off, they’re the best in the business:
Source: STT Breaking News chat
CRE survived the open, hit the Oracle signal at $6.96, and got close to major resistance (M/R) at $8.74…
CRE, 8/26/26, 5-min candle, premarket spiker with news, chat pump
I like the way CRE traded sideways the rest of the morning and early afternoon. I reckon it’s loaded with every short seller and his drunken brother.
Depending on how it finished the day, watch for breaks above yesterday’s Oracle signal (or the nearest round number at $7). The target is still the M/R.
On My Radar
- She inspired generations: RIP Dolly
- Gates on AI: “This time really is different.”
- Tomorrow you can watch Fed Chair Kevin Warsh’s Jackson Hole speech here
- Sykes’s new after-hours tool is on fire. Get the FREE watchlist here