It's about time we add another video to the YouTube channel !!
We ended up getting short at the very top but why? What led us to that assumption? The Versar Inc. (VSR) discussion in DVD 2 goes into this in depth.
This is a common situation when trading momentum but it's most important to really understand what is happening and what you need to be aware of. Most traders think "Hey this stock just went up 150% or 200% it's up too much !! It has to pull back" but is that really the case?
Not always! It's important not to just short a stock because it's up big but rather actually understand what would make a good short, how you should short into the parabolic or 'stuff' move (if you're more advanced) or how and why you need to wait for the line in the sand to crack, momentum to shift and have a SET risk vs. potential reward (if you're a newer trader).