What does type “Short” mean in the stock pick alert?

When you are Short a stock, you are looking for the price to go lower. Example:

  • Sell MSFT at $44.30 on a Short alert
  • Goal is to buy it back at a lower price than $44.30 to make a profit
  • If you buy above $44.30 you have to take a loss

This is opposite of Long trade. You are first selling the stock because you believe it will go lower. Then you buy it back at a lower price to close the trade. Margin account is required at your brokerage for Short trading.

When the market is trending lower, there are more Short trading opportunities.