When is the best time to short a stock? Below is a chart that illustrates a great short trade on SMH.

1. You first must find a stock with a low price and high volume day.

2. At this swing the volume at 27 million. Next wait for a retracement bounce up back to this price point which takes time and patience.

3. This was the test and time to short in the $30-31 price range and volume was only 10 million. This means no buying pressure and time to short.