FSIN Update (short trade)

I'm really happy to get emails from members that got in on great trades. The one thing many of them have in common is that they have a charting system and they set alerts for areas that I mention in updates. A member just went short FSIN.

From my last update on FSIN:

"I would keep an eye on the 50-bar m.a. on a 60 min chart, it may be the key to a reversal here."


And here's FSIN, one of my favorite shorts and if you didn't get in on the entry signal today, believe me, there's plenty of potential downside in FSIN, perhaps the $1 range.

 Here's the long term top, big trouble for this Chinese company, who knows, it may be the next Chinese reverse merger fraud to head toward $0. This has been one of my favorite short trades recently.

 Here's the daily chart of the FSIN break-down almost 10% today. I warned late last week that FSIN had stuck its neck out too far.

 And for those members who payed attention to the last update, the break of the 60-min 50 bar average was the cue to short FSIN.

The 15 min 3C chart of FSIN is clearly in distribution mode and headed for support, which would make for another nice entry or add-to. Conventional wisdom says you can't make more then 100% on a short, that is if t goes to zero, but conventional wisdom is WRONG. When you have a short position, the profits are added to your account without closing out the trade, unlike a long position where the profits are not available until you lose out the trade. This s a huge advantage of being short, not short via inverse ETFs that you buy, but a pure short position.


If you take those accumulated profits as the trade moves in your direction and you add to the trade with those profits, you can in theory and in real life, make more then 100% on a short. There's an article I wrote on www.Trade-Guild.net on the left side bar under "Resources and Concepts", the article is titled, "How to make more then 100% on a short", check it out when you have time. We have to use any edge provided to us and rather then throwing more money at losing trades, consider adding to your winners and cutting the losers.


One last note, if you're gong to trade, you should have a good trading platform that allows you to set alerts. This way when you read an update and I mention specific levels, you simply set a real time alert and you an be in the trade in less then a minute. Telechart has basic alerts for price crossing above/below a level, or news alerts and a few other alerts that can be sent to your email, pop up on your charts and a few other options. The update of Telehart, TC-200 which I love, but doesn't display 3C properly, goes even further, you can set trendline alerts, moving average alerts and many others. There's simply no way to keep track of all of this information so set an alert and let your trading software do t for you, like our member who just caught FSIN.


I have links to Wordn on my www.Trade-Guild.net site, I m an affiliate for them so if you decide to sign up, please let them know that Brandt from Trade-Guild.net sent you, it won't cost you a penny more and helps me keep costs down for all 4 of the charting software programs I run n realtime. TC-2000 also has a mobile application for Android mobile devices and I-Phone, its a free app when you subscribe to TC-2000 and allows you to take all of your indicators, chart templates, scans, watchlists and more and keep them with you right in your pocket. If you subscribe to real time, then you get real time charting capabilities as well. I'm a Worden affiliate because I've been a Worden subscriber for 11 years. Sorry for the pump, but I absolutely believe that a good charting system is essential to good trading.