A Good Example

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It’s been a good day thus far, and one of my better shorts – Taseko Mines – is one I’d like to hold up as an example of the kind of short I like. Here are three things I like about this chart as a short:

(1) A large, relatively recent run-up in price, affording ample empty air through which a price can fall;

(2) A liquid-enough market in the stock to make it worth a position;

(3) A very cleanly-defined stop-loss level, confining risk to a reasonable ratio versus the reward