The goal of this course is to describe what equity short selling is, how one shorts a stock, how it can be profitable, and what the risks of short selling are.
Created by Tradimo.
About this course
How to profit from shorting stocks?
Short selling equities: Betting that stocks will fall can be highly profitable despite the risks.
Profiting from shorting stocks requires a skeptical mindset. But for contrarians with patience and discipline, shorting can be very rewarding.
It seems almost everyone wants stock prices to go higher. The shareholders of a company get wealthier if their stock goes up. Employees of a company, who often own stock options, hope for higher prices. Management may get bonuses if share prices rise. People are counting on stock values in their retirement accounts to rise. Money managers’ careers rely on higher stock prices. Exchanges, brokers and investment websites thrive on equity bull markets. Even the president of the U.S. points to higher stock market prices as a sign of his success.
In this stock short-selling course we’ll learn:
What short selling is
The mechanics of short selling stocks
How to find stocks poised to trade lower
Shorting equities based on fundamental and technical analysis
Historical examples of classic stock short sales
What short interest is and how it can impact your short positions
The dangers of short selling, including the dreaded “short-squeeze”
The importance of short trade management and buy stops
How keeping a “short book” can help your long investing
Is there anyone who wants stock prices to go down? The answer is yes -- one group of people are hoping stocks lose value. Short sellers. Why do short sellers want stock prices to go down? Because they can make a lot of money.
But short selling equities is far from easy -- it’s more difficult than buying stocks long, for many reasons. However, for those with a contrarian mindset, running against the bullish herd offers unique profit potential. In this course, we’ll study the basics of how to make money betting on the downside -- shorting stocks.
Risk warning: Trading in financial instruments carries a high level of risk to your capital with the possibility of losing more than your initial investment. Trading in financial instruments may not be suitable for all investors, and is only intended for people over 18. Please ensure that you are fully aware of the risks involved and, if necessary, seek independent financial advice. The educational content on Tradimo is presented for educational purposes only and does not constitute financial advice.