(SHORT SELLING) MY BIGGEST SHORT AGAINST A STOCK...

TL;DR

Trader explains shorting Amazon stock due to overreaction to earnings, successful trade results in significant profits.

Transcript

so today I took one of my biggest short positions and that was with Amazon stock as Amazon reported earnings yesterday after the market opened and was up over 11 let me go ahead and share my screen with you I also did trade ask Kiki Q on this reversal it's very easy to see on the five minute time frame it was selling off lower highs lower lows toda... Read More

Key Insights

• 🏣 Shorted Amazon stock due to overreaction post-earnings.
• 🍰 Considered historical data and market trends to justify the short trade.
• 🎚️ Made profits by identifying overbought levels and pullback potential.
• 🧘 Managed the short position effectively by adding to it as market conditions favored a downside.
• 🥳 Traded other stocks successfully on the same day, maximizing profits.
• 😘 Anticipated lower highs and potential lower lows in the overall tech market.
• ❓ Prepared for upcoming CPI data report to make informed trading decisions.

Questions & Answers

Q: Why did the trader decide to short Amazon stock?

The trader shorted Amazon due to an overreaction post-earnings and favorable market conditions, including overbought levels and pullback potential.

Q: What factors influenced the trader's decision to enter the short position?

The trader considered Amazon's historical performance, market trends, and the likelihood of a correction post-earnings when entering the short position.

Q: How did the trader manage the short position on Amazon stock?

The trader added to the short position as market conditions favored a further downside, which resulted in significant profits from the trade.

Q: What market indicators did the trader use to predict the pullback potential in Amazon stock?

The trader analyzed overbought levels, support zones, and overall market conditions to predict the pullback potential in Amazon stock successfully.

Summary & Key Takeaways

• Trader took a short position on Amazon stock due to overreaction post-earnings.

• Analyzed Amazon's history and market conditions to justify the short trade.

• Made significant profits on both Amazon and other trades by identifying overbought levels and pullback potential.