Longtime Wall Street Trader: Don't Short A Stock Just Because It's Up A Lot

Veteran trader David Green imparted a nugget of wisdom to new traders Tuesday morning. Green was asked about shorting stocks like Apple Inc AAPL and Facebook Inc FB. Both stocks have rallied to new all-time highs in recent days. 

“You don’t short a stock just because it’s up a lot,” he said on Tuesday’s Live Trading With David Green. “You short a stock when it hits a technical level telling us when to short it. That’s the bottom line.”

Live Trading With David Green is a morning trading show in which David live trades the open on Benzinga. The show airs Monday-Wednesday at 9:25 am ET on BenzingaTV. 

Green added that he loves Apple long term, and has held the stock since the 1980s. Green uses moving averages to determine support and resistance levels.  

Also on Tuesday’s show, Green bought Mediaco Holding Inc MDIA for a quick day trade and placed an order to buy shares of Goldman Sachs Group Inc GS at $372. 

Stocks Discussed On The Show

Green was also bullish on Orbsat Corp OSAT, and bearish on Virgin Galactic Holdings Inc SPCE.  

Green mostly executes quick day trades, both on the long and short side. When a stock hits one of his pivot points he initiates a buy order with a tight stop loss. 

Like he did on Monday, Green looked at puts on AMC Entertainment Holdings Inc AMC.

“If you buy some of these $34 puts, and the stock continues to go down you could make some money,” Green said. Green looked at options expiring this Friday, adding that the puts are risky because we are close to the expiration date. 

Watch the full episode in the clip below, or click here to watch.

About The Show:
Benzinga’s Wall Street Global Trading Academy follows Wall Street Veteran David Green as he live trades at the market open breaks down what he is trading today. The show streams live Monday-Wednesday at 9:25 am ET on Benzinga's Youtube, Twitter, and Twitch. 

About The Host
David Green is a 30-year veteran of Wall Street, including 13 years as a specialist on the floor of the New York Stock Exchange. Since retiring from the floor, Green spends his time helping retail traders. Green built a full-fledged trading course, Wallstreet Global Trading Academy, with fellow floor trader Peter Tuchman. To learn more about the course, click here or follow it on Facebook.