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.
Aug 17, 18 05:07 AM
In this lesson we will take a look at the technical developments of OKA Corp's stock price and why it moved the way it did. We will also have a look at what might happen to OKA's stock price.
Aug 16, 18 07:28 AM
In this lesson, we will learn how and why BMY manage to bottom out and start a new uptrend.
Aug 14, 18 08:19 AM
In this lesson we will learn and examine why Pentamaster was able to recover all of its losses to start a new uptrend and achieve new highs.
Aug 13, 18 05:56 AM
The KLCI is currently at resistance territory after a nice big rally. I would consider a sideways trading a possible scenario at the moment.
Aug 13, 18 05:22 AM
In this lesson, we will learn how AAPL's 15 Min stock chart formation help to send the stock higher for 2-3 days to give traders a nice swing trading opportunity.