Allegion Plc

Trading Strategies

Why Short Sellers Are Actually a Bull's Best Friend

Last week, I told you that to beat the market, you need a stock to follow what I call the "FAR Principle." I need a fast move that is both aggressive and in the right direction.

One way to find FAR stocks is to look for an impending breakout in volatility, just like I showed you.

Now I want to show you another tool I use that's been at the heart of my trading for more than 20 years – short interest.

When you see why the number of bets that a stock will go down is a great indicator of when that stock will actually surge (and make you a ton of money in the process), it'll all make sense...