Is there a way to really profit from stock declines and market crashes? Yes there is and the way to do it is by shorting stocks.
When a person shorts a stock this is what happens:
For those who do not understand the mechanics of short selling, just take my word for it that you can make money when a stock drops.
The benefit of short selling is that you get to participate in the decline of a stock and make money from that decline. There are however risks that apply to shorting a stock. Such as when the stock gaps up and move way above your shorting price. In theory, your loses can be unlimited. However, with proper money management and a sound strategy, short selling can be a very lucrative and profitable trading strategy.
Do remember that stocks fall 3 times faster than they rise.
So you not only make money when a stock falls, you get to make it faster as well.
A good trader can make money whether the stock market is in a bullish run or in a bearish run. As you progress in this course you will learn that shorting stocks is just as easy as buying a stock.
Feb 25, 21 07:54 AM
In this week we will have a look at VUZI, KSS, PBCT, CBRE, SPG, KPOWER and the lessons from their chart.
Feb 17, 21 09:44 AM
In this week's chart lessons, we will be looking at NVDA, SPX and KLCI, LKCO and MVIS.
Feb 10, 21 08:10 AM
Let's take a look at the SPX and MSFT, TLRY and KGB this week. Continuation patterns can be strong indication of bullishness.
Feb 04, 21 12:21 AM
In this week chart lesson we will have a look at the S&P 500 as well as Top Glove and also Bitcoin.
Jan 25, 21 10:59 AM
This week's chart lessons. Some interesting developments in TSLA and AAPL.