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