Shyon
04-09

Long or Short? Personally I found out long is easier than short. The risk of short is way too big for me. The biggest lost if you long is 100% total lost, however, the lost can be 200 300 500 1000% during a short. Sound scary right? 

A general sharing, short selling is a trading strategy where investors speculate on a stock's decline. Short sellers bet on, and profit from a drop in a security's price. Traders use short selling as speculation, and investors or portfolio managers may use it as a hedge against the downside risk of a long position.

Timing is crucial when it comes to short selling. Stocks typically decline much faster than they advance, and a sizable gain in the stock may be wiped out with an earnings miss or other bearish development. Conversely, entering the trade too early may make it difficult to hold on to the short position in light of the costs involved and potential losses, which rise if the stock increases rapidly. 

In order to get the most out of the market via short-selling, it's important that you do extensive planning and have a solid strategy. I have put together a few tips to get you started.

- Do a complete fundamental analysis on the market before you decide to go short

- Be mindful of your position size – the larger it is, the more risk is involved. However, if the position is very small, you might not make a visible profit

- Set up trading alerts that will notify you when your market hits a certain level and then lets you decide what to do next

- Place trailing stops that will follow your position if it earns a profit and close if it reverses

- Place guaranteed stops to close your position once it rises to a certain point. This puts a limit to your downside and you'll only have to pay a small charge if your stop is triggered


In a nutshell, you can use short-selling to speculate on falling market prices – giving you the opportunity to profit from bear markets as well as bull runs.

Hope the experience sharing on short selling helps the readers here. 

@Tiger_comments  @TigerStars  @MillionaireTiger  

What's your trading style? "I am a _____, looking for ______."
What's your trading style? Fill in the blank: "I am a _____, looking for ______." Let's uncover the diverse trading personas within our community! 💼💡 Which Leveraged ETFs Are Amplifying Your Returns? 💼💬
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Aqa
    04-10
    Aqa
    Thanks for sharing. Liked and shared.
    • Shyon
      Thanks for your support hehe
  • nicepal
    04-12
    nicepal
    Nice reading.
    however, most important is still the word "when".
    just joined about a month, average out is red. hope to gain this skill/knowledge so can turn around within next few months..
  • Alvinlim888
    04-11
    Alvinlim888

    Great article, would you like to share it?

  • Sonsonkok
    04-11
    Sonsonkok

    Great article, would you like to share it?

  • JeanWong06
    04-11
    JeanWong06
    Great article, would you like to share it?
  • VivianChua
    04-10
    VivianChua
    Nice 💚 💚 💚
    • Shyon
      [Heart] [Heart] [Heart] [Bless] [Bless] [Bless]
Leave a comment
15
1596