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How to identify short-sale candidates

This lesson assumes that you understand your financial goals and are familiar with all the risks and opportunities online trading provides. You can schedule a free call with our expert trader that will help you find the best way to achieve your financial goals.

The key to profitable short selling is shorting companies with suspect operations and downtrending stock prices. Only short companies you understand.

When you begin your search for short-sale candidates, you obviously have one basic goal: Finding a stock poised to fall in price -- the more the better.

While this sounds simple enoug