Join Dstockmarket's Community - Daily Market Analysis, Individual Stock Analysis.
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.
Jun 29, 20 08:04 AM
Technical analysis of the KLCI for the month of June 2020. What is likely to happen? Read here.
Jun 29, 20 08:03 AM
Well, sell in May did not materialize for the S&P 500 but the market continues to chugg higher. What is in store for us this month?
Apr 30, 20 07:49 AM
What is the stock market likely to do from this impact of the Coronavirus? Will it continue to fall or a bottom is near. We will use charts to guide us.
Apr 30, 20 07:44 AM
The Malaysian stock market has been badly battered following political uncertainty and the Coronavirus. Let us chart the KLCI and see where it is likely to go.
Apr 24, 20 07:20 AM
Want to learn a trading strategy that is less stressful and that will allow you the freedom of not looking at the markets everyday?