Kelv short selling

Why short sell shares
I don’t understand options so no puts for me. Thus short selling shares the way to go.
Short selling is addictive because it can be profitable yet risky at the same time if you do not have strict stop loss control.

I have issue with strict stop loss so I can have many green days of hundreds in profit per day but my loss will be in the thousands effectively cancelling all my profit. Still working on improving myself.

My style
I go in and out quick and sometimes I hold / average up. Occasionally holding short positions overnight .

Short selling signals I used :

  1. Look left on the chart for previous resistance.

  2. News catalyst . Sometimes even with mediocre news, a stock can get pumped because of MOMO plays and that is when I get fucked.

  3. Float, small float bad, big float still ok. Then look at float rotation for the day if the volume is over 3-5 times the float at PM or even during market open, then there is a chance that previous resistance don’t matter anymore which means a ticker can go higher if it gets enough attention from retail traders.

  4. Is it being pumped anywhere, shortsqeeze/squeezeplays

Lastly
I still consider myself a newbie (I started sept/oct 2021) as I can’t read a short setup as well as the peeps from Atlas.
I’m active in the short chart in the other discord because Valhalla do not have a separate room for these purpose.
I will show the good and bad of shorting (mainly bad) i’m red this week but hope I can get in form after ESSC plays from next week onwards.

These are undefined risk type of positions, you can in theory have unlimited loss.

In-the-money puts will give you a defined-risk position(with leverage), the more ITM the less leverage and less time-loss(theta) and the more it behaves like short share position, as oppsed to a an options “yolo”.
The benefit to put options instead of a short sale of shares is that you have a defined maximum risk. The most you can lose is what you paid for the options.

Short sales are also capital intensive, you often have to maintan a significant cash margin(for the protection of the broker if the shares gap up and wipe out your account), this can tie up capital that could be used productively elswhere.

Yes , I understand the risk. So I always have stop loss in mind although sometimes* I don’t keep to my rules but i’m trying to improve and have not blown up any account. 4mths short selling so I have some ups and down.
Thanks for the caution and appreciate it.

I have 2 brokers, Interactive Brokers and Tradezero. So my screen shots may look different depending on where I shorted it
Red down triangle = Sell = Short
Up triangle (blue/green) = buy = Cover

Today’s trade winner#1 - BBIG
Decent position
Shorted this as it seems the multiday run was weakening and it’s nearing opex and if retails think gamma squeeze is contributing to the run, then it’s definitely going to weaken nearer to opex.

Didn’t really have a clean trade on this initially but glad I woke up and covered at the lows.
As you can see,
1st short, covered moments later, in and out.
2nd short , in and out.
3rd short , shorted and decided to overnight it as didn’t expected much drop. Woke up to a pleasant surprise and covered all .

(FYI, Tradezero charges 4x locate fees for holding shorts overnight 1st day)

Winner#2 -DATS
Small position
This is a ZM ticker and the news: DATS Accquire Avila Security.
So firstly, acquisition means DATS is spending money + shares so it should be slightly bearish. Most often, the company acquiring will have a decrease in share price but not DATS. It went up and up. I was cautions so I got in and out quick , made small profit but looking at the big picture, I wished I had held longer.
Profit !!

FML - If only I held longer (hindsight 20/20)

Winner#3 - ADGI
This ticker grinding up on nothing. The last news was on 14th Jan 2022
Adagio Therapeutics reveals promising Data on ADG20 Against Omicro.

A quick in and out short, nothing spectacular. I didn’t get the top but defnitely covered at a right point.

Loser - LAZR
Small position
So this ticker had good news, partnership with Benz and later there were offerings.
Front sided this ticker and covered (blue up arrow) .
On hindsight , I could have average up my short and looking at the H&S I could have made it out slightly green but hey, it was scary to me seeing it grinding up ! I don’t regret this and I didn’t have a large position in it.

That’s all for all my shorts today.
From the charts today, it seems I need more conviction in my shorting and not be afraid to average up. (LAZR, DATS)

I did longed SOFI for couple hundred dollars profit and already sold.

Lastly, this took quite a bit of my time. If i’m free i’ll give more descriptions if not just a screen capture of my trades.

Today’s trade winner#1 - BBIG (Again)
Decent size
Not a perfect short and not perfect covers.
Notice after my last cover on 2nd short, BBIG tanked further.
I didn’t want to risk overnight fees on TZ (it’s $21x4 for the first night and subsequently $21 each day for holding my short position of 2000 shares)

Winner#2 - PT
China ticker without any news catalyst. Free money.
I averaged up because who knows with these tickers…they may just run 20% and tank but for this case it ran till 60%. I covered partially (blue triangle) and will hold the rest till next week.

Winner - ARDS (Updated from Loser → Winner)
This popped on “fluff” / “fake” news.
BZ - Aridis Pharmaceuticals tweets : “We are rescheduling our group call , as we have some very exciting news coming”
The thing is…I CANNOT find this tweet ! So i’m convince it’s fake/pumped.

I averaged up couple hours later when I saw another user twitted which I hope is just a fake pump on old news.
https://twitter.com/EliteDayTraders/status/1484666688889106432

As of now, i’m underwater (losing money) wish me luck next week.

UPDATE* I covered for a small profit ! So this lose became a winner .

I’ll provide updates to these tickers by modifying this same post whether it’s a loss or a profit (so ARDS may be changed to winner if I make money on it next week)

Have a good weekend.

Today’s trade winner#1 - ARDS (Again)

Last week I shorted ARDS and covered today PM for slight profit.
Then it pop again and so I grabbed this money making opportunity.

Shorted around $2.20 and covered around $1.90

This is my only trade today.

Today’s trade winner#1 - APM

Quick scalp for small profit

winner#2 - MBOT
Know for a fact this stock is being pumped by bored billionaire so got in on this short.
Covered when I need to sleep (I have a different time zone)
Lots of could have, should have held my short position etc etc but just happy to be green for the day.

Loser#1 - XELA
Look at where i short and where it is now.
Shit. Depends on how it does tomorrow. WIll either cover with loss or avg up.
Edit: Covered for a loss…F

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Today’s trade Loser - SRRA
Oh my god this is a bad 1.
Shorted it, saw I was down hundreds but refuse to believe it’ll go higher.
Went to sleep without a stop loss.
Covered for a near 4 figure loss.

I had some other small wins but I don’t have the motivation to post them today. Just to my loss should be more meaningful.

Looking back at SRRA (My previous 4 figure loss). I could have held and broke even (It went back to near my avg price as of this post).
The reason it didn’t work out could be due to “Offering at $27 per share” and a weak market. This was expected to squeeze in our short community.
What done is done so moving on.

Today’s Winner#1 - ARDS
Reflecting on this. I need to hold my winners for long and stop shorting and covering too fast.
More conviction!

Winner#2 - IMMP
This was a bad trade even though I made some “negligible profits” .
Again conviction. I need to hold my short position for 10-15mins or longer and not paper hand.

Overall…today was a bad day. No loss but just bad trades because I should have made huge profit in this “bearish” market but I was afraid.

I used to be extremely diamond handed on my shorts. I avg up and held them overnight and eventually I nearly always made profit . Now the market changed to favour me yet I did not take the opportunities.

What I need to do is to just “Hold my short position for at least 15-30mins” to let it play out.

Today’s Winner#1 - BBIG
What more can I say? Auto short on any BBIG pop over 3.

Infact I’m rooting for BBIG because the higher it gets , the harder it crash.

Testing out my “Diamond Hand” strategy on weak tickers.
Notice my short price was around $2.91 (Should have , could have got $3)
Covered 70% at around $2.81, went to sleep hoping it’ll go lower.
Wake up and covered at $2.89.

It’s literally cents so for these plays I put in at least thousands of shares , BBIG is “Free money” and honestly even if it didn’t work out and continued going up, it’s an easy swing short !

Winner#2 - AGE
Pop on no news during Pre-market. Easy short. Again could have held longer and didn’t get 100% filled…still money is money.

Winner#3 - TKLP
I thought this was an easy short. It’s should be. Recent IPO and up on no news.
Took profit early which proved to be a right choice. (I have a different time zone , power hour is 4am-5am my time)
Glad I did…look at it ROCKET later in the day.

Overall today is a small green day (No large positions although was full of conviction of my shorts)

Today $KSCP also decided to “Fuck the bears”. Luckily due to high locates cost of 0.5c - 0.8c per shares I didn’t think it was worth it to pay high fees to short it. This ticker RIP and possibly liquidated quite a few short sellers account if they are stubborn and size in too big with no stop loss. This ticker will be on my watch list for the next couple weeks and it’s finally time to short it down to earth.

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Today’s Short (Open Position+Win) #1 - BBIG
Covered fully my short position in the PM from previous day short.

Saw BBIG started RIPPING and I can’t help myself to have a starter position in it.
I’m guessing the reason for the rip might be Retails playing the options expiry this friday? So i’m adding to my position at around $3.7 or $4 and will have a final add at $4.3

Winner#2 - WKSP
Figured this is not a popular ticker and is up when only opening a manufacturing facility (It’s not TSLA) so i’m not bullish at all. Anyway quick scalp.

*I pressed the wrong btn to cover and instead added heavily to my short near the 2.42 mark…got out quickly as I was panicking or else would have held longer.

Winner#3 - EBON
China Ticker up on no news and isn’t $BABA = Auto short *at the right time else would have to hold for a long time

Today’s Short (Open Position+seems to be on the losing side) #1 - XELA
*EDIT: I average up and got out with very tiny profit not worth mentioning.
*No longer shorting XELA now.

Ok XELA is a tricky 1. It almost always dump regardless of good or bad news so was confident shorting around $0.7 range. Added a little at $0.73.

Set to automatically add to my short position at $0.79 and got filled when it ripped while I was asleep.

Why am I holding a losing position ?
XELA had a “good news” and will give share holders $1 per share at the year 2029. (Yea 7 years from now) …bearish.

XELA has a current active HUGE (220m) “At The Money” offering which means they can sell it at the current market price and diluting the shares.

I’ll be holding this position for awhile if it doesn’t work in my favour as i’m still bearing on this ticker at least in the short term.

You can see my avg price is 0.7568 and it’s now at 0.8150 . No sweat

Today’s Short loser#2 - BFRI
Ticker was getting pumped by Mini-Trades and Ultra so was pretty confident of it going back down (Just like ticker that were pumped by them).

ER was lower than estimate too. So it didn’t work as expected and took small paper cut loss here.
I try not to hold it overnight because of TradeZero’s short locate cost (Unlike InteractiveBroker short fees which are negligible) . It can tank tomorrow or rip again so we shall see. New day new opportunity.

Overall I’ve been doing badly Previous and this week.
I had many winning tickers but they were small wins. My few losses eclipse the wins.
Still hopeful as I learn more things and try to read a trade better.

Today’s Short Winner #1 - BBIG
1st white box = Covered from previous day short.
2nd white box = first short and fully covered
3rd white box = 2nd short and fully covered.
Overall stress free. BBIG is just so easy for shorting. I believe it can go below 3 but i’m impatient.

Today’s Short Winner #1 - CFVI

Runner off DWAC symp, and DWAC is too big for me (also locates cost about $44 for 100 short shares)
Could have added to my position at the 2nd pop but I was sleeping (Different time zone)
Shorting from IB
Will be on the look out for this same ticker tomorrow.

Winner #2 - PHUN
Runner off DWAC too…easy short and I shorted this on 2 brokers because I need more cash ~

Shorting from TradeZero - easy way to add funds to my account. Who needs bank transfers.

Overall green day today.
Psss: If anyone notice, I keep posted winners and it’s true, I have mostly winners BUT my few losses are usually huge…so yeah shorting is risky and always managed your risk. I’m always learning and keeping this in mind everyday.

Took small short position 50 shares on DWAC because FOMO/LOTTO. It could run till release of Truth Social app but I don’t care. (Yes i’ve been burnt before by shorting DWAC)

No other trades today as there is no short setup that I like. There are a few like INDO / ANY which on hindsight is a good short beginning of the day but it’s just not good. Might as well be a gamble since it could have gone either direction and I don’t like to hold short position through weekend since Locates cost (Tradezero) will be x4 for the first night , x1 for subsequent days.

Shorting Fees
Typically Tradezeo Locate fees can range from
$0.001 per share to $1.6 (highest i’ve seen) per share.
For those 200%-300% runners, the locates can cost around $0.8 - $1.6 per short shares
For those normal runners like ANY/INDO I think it’s around $0.02-$0.04
All these depends on how hard is it to get the shares and if many people are paying the locate fees for shorting.

TradeZero
For my account size, usually I pay around $20 -$50 for locate fees on popular tickers . Occasionally $100 for those tickers running over 100%

Imagine based on $50 locate fees for 1000 shares, holding it overnight through the weekend means i’ll be down $300(x6) before I even made any money that is assuming if the price drop on monday or the stock dump on monday.
Got to be mindful of the shorting fees on tradezero.

Interactive Brokers
I try to short using IB as much as possible but it’s one of the worst for shorting. Popular tickers usually do not have any shares to short. Good thing about IB is the short fees. It’s almost negligible. (Not exact sure of the % interest rate)
I’m guessing it’s about 3%-5%

Taking 5% interest rate that IB charges
If I short ticker xxx for $3000 the interest I have to pay for borrowing $3000 is $150 (per annum)
Since i’m not holding short position for the entire year, I need to divide it by numbers of day i’m holding a short position.

($150/360) * 2days = $0.83 fees

Besides base interest rate in IB, there is also a “Borrow fees in %” that will change depending on how badly shorted a stock is. I’m not exactly sure how it’s calculated but let’s just say that for my account size and number of days I hold a short position, it’s not much of a concern for me.

On watch next week
BBIG (want it higher)
DWAC and all tickers related (CFVI, PHUN, MARK)
ANY (May follow BTC)
PTON
SNAP
Plus any intraday runners.

A ton more tickers on my list but above are the main ones.

Finally
I’m still not at my peak performance. I feel like some of my recent losses this year is affecting me in some ways. I’m more afraid and too careful now which means I may miss out on many opportunities but i’m also reducing my loss. Will see when and how I can get back to my peak mindset.

Will share my PnL calendar over the weekend. It’s not audited of course , take it as you will.

Taking a short break from posting Journals due to family member passing away but still doing some “safe” shorting when I have some free time.

Took profits on more BBIG shorts , holding some CFVI for swing short (Avg 14.50~ , it can and will go back down to 12.5).

Will be back full force once everything is settled.