36. Bearish Setup - Parabolic Short
[1. Setup Mastery] - [1.4 Bearish Setup] - [1.4.2 Parabolic Short]
Find a stock that has made 100% to 300% move in a short period of time like 10 or 5 days and short it.
This works in any market condition; it typically works on story stocks.
Problem with parabolic short, There is significantly high risk.
You can’t operate with 2.5% stop even after trying hard and who are trading parabolic short they are taking anywhere from 10 to 25% stop.
And every year there are 2 or 3 who are very good at trading parabolic shorts. They blow up and also they are ones who are doing it for ages.
Even though you know everything about parabolic short and each and every detail with just one trade it can ruin the career and you also need a special broker too to trade that.
If your doing this, Its recommended to keep a separate account to do this. And keep suicide hot line no always ready.