Understanding the Short Float Can Drastically Improve Your Win Rate
The short float is one of many ingredients that day traders use to predict market direction. After receiving a lot of feedback on how to explain this indicator, we found this video which provides a great overview of the topic.
Essentially, the short float is a quick way for anyone to gauge investor sentiment on a specific stock by seeing how other traders are faring on their positions.
Today’s Investing Shortcut will teach you what the short float indicator exactly means and how to use it to predict near term movements in the charts.
For all day traders, this will help you find more high probability plays with elevated reward to risk ratios.
While there is no official list of market analysis ingredients, this is one that every trader should be aware of.
This video by mutual fund owner and ex Floor Trader, Blake Anderson addresses what exactly short float is and how to use it.
Additionally, Jerremy Newsome follows up at the end to discuss how to play the iRobot stock swing referenced in the video using this new found knowledge.