CHATROOM

The Exact Process By Which It’s Possible To Short Sell Hard To Borrow Stocks

March 10, 2009 at 8:20 am
by Timothy Sykes

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Still getting a ton of questions on how it’s possible to short hard-to-borrow stocks, so I’ll link again to my original post detailing the process, encourage you to check out my instructional trading DVDs and eve show you an example below of exactly what I say in my Thinkorswim chat window each morning:

Please wait for a site operator to respond.
You are now chatting with ‘Paul’
Paul: Hello, how may I help you?
Tim: hi for account XXXXXXXX, can we try to borrow 2000 TWB, 3000 CSUN and 2000 MRLN to short today?
Paul: checking
Paul: TWB is Easy to Borrow
Tim: ok thanks
Paul: 2000 MRLN is ok
Paul: 3000 CSUN is ok
Paul: Would you like me to make a note on your account for later, or shall I enter an order for you now?
Tim: yes please, let short 3k CSUN limit of $4.99 and 2k MRLN limit of $5.99
Paul: orders are working
Tim: thanks have a good one!
Paul: Thank you. Have a great day!

I put limit prices waaaaay above the stock prices because I don’t intend on shorting them right away, I’ll just lower the prices if and when I do want to short them…or you could just have them make a note on your account, but then you’ll have to re-open the chat window when you want to trade them.

Any other questions, ask them below…and to anticipate, Etrade, Scottrade & Schwab all suck for shorting low priced stocks. I use and recommend Thinkorswim, Interactive Brokers is also great, but their minimum is $10,000 and their customer service sucks (as evidenced by the fact they still have yet to get back to me about working together several months after I’ve contacted them repeatedly)

Posted in Basics, Short Selling

Tags: ,

  • Tyler

    When you reserve those shares, I have been told that I must use them that day or I will lose them. They will not carry over to the next day. I wish there was a way to accumulate hard to borrow shares. I feel restricted and do not like it.

  • Tyler

    When you reserve those shares, I have been told that I must use them that day or I will lose them. They will not carry over to the next day. I wish there was a way to accumulate hard to borrow shares. I feel restricted and do not like it.

  • http://test.timothysykes.com Timothy Sykes

    there is a thing called preborrows, but u have to have a good broker like goldman sachs to do it and they cost u a bit of $

  • http://test.timothysykes.com Timothy Sykes

    there is a thing called preborrows, but u have to have a good broker like goldman sachs to do it and they cost u a bit of $

  • HopeSolo

    Thanks for that info Tim. I’ve always wondered what you meant by reserving shorts and now I see that it’s effectively just placing limits way too high and lowering them later to trade. And yes, I know, buy your DVDs, I plan on it after a few more winning trades!

  • HopeSolo

    Thanks for that info Tim. I’ve always wondered what you meant by reserving shorts and now I see that it’s effectively just placing limits way too high and lowering them later to trade. And yes, I know, buy your DVDs, I plan on it after a few more winning trades!

  • Josef H

    Hey Tim,
    Just a quick question. How will the ‘Up Tick” rule affect shorting Penny Stock?

  • Josef H

    Hey Tim,
    Just a quick question. How will the ‘Up Tick” rule affect shorting Penny Stock?

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