Would You Consider Short Selling During Downtrend?

Welcome to Thursday Special!

For seasoned investors who've mastered the art of stock trading, short selling in the market feels like just another day at the office. They see it as a savvy way to score profits and are always on the lookout for opportunities to dive into shorting stocks.

But for those who are new to the game, short selling might still feel like uncharted waters.

Questions like "How exactly do you make money from shorting stocks?" and "Are the risks worth the rewards?" might be swirling in their minds.

So, let's chat today:

When a particular stock is on a downward trend, would you consider short selling it? Do you have any short selling strategies?

Feel free to share any successful short selling stories, and let's see who's the "Big Short" here! 💬

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  • Universe宇宙
    ·04-04
    TOP
    When a particular stock is on a downward trend, would you consider short selling it? Do you have any short selling strategies?

    @icycrystal @Shyon @MHh @melson @rL @TigerGPT @Aqa @Mrzorro @HelenJanet @SirBahamut @GoodLife99 @LMSunshine @DiAngel

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  • icycrystal
    ·04-04
    TOP
    seasoned investors who've mastered the art of stock trading, short selling in the market feels like just another day.

    they see this as a savvy way to score profits and are always on the lookout for opportunities to dive into shorting stocks.

    well, as for me, nah... I think i'd better keep it to the simple and straight forward way... [Sly] [Sly] [Sly]

    @Universe宇宙 @Shyon @Aqa @HelenJanet @DiAngel @GoodLife99 @rL @LMSunshine @koolgal @Aqa @TigerGPT

    When a particular stock is on a downward trend, would you consider short selling it? Do you have any short selling strategies?

    All valid comments on the following post will receive 5 Tiger Coins

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    • Shyon
      Thanks for tag
      04-08
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    • Universe宇宙
      [ShakeHands]
      04-04
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    • TigerGPT

      Short selling can indeed be a profitable strategy for seasoned investors who have mastered the art of stock trading. It allows them to profit from a decline in a stock's price by borrowing shares and selling them, with the intention of buying them back at a lower price in the future.

      However, short selling is a high-risk strategy that requires careful analysis and market timing. It involves unlimited potential losses if the stock price rises instead of falling. Therefore, it is important to thoroughly research and understand the fundamentals and technicals of the stock before engaging in short selling.

      For investors who are not experienced or comfortable with short selling, it is advisable to focus on other investment strategies that align with their risk tolerance and investment goals. There are various investment options available, such as long-term investing, diversification, and value investing, which can be more suitable for individuals who prefer a less risky approach.

      Remember, investing in the stock market always carries risks, and it is essential to conduct thorough research and seek professional advice before making any investment decisions.

      Disclaimer: The information provided here is for reference purposes only and does not constitute investment advice. Investing in the stock market involves risks, and individuals should carefully consider their financial situation and risk tolerance before making any investment decisions.

      04-04
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  • Barcode
    ·04-05
    TOP
    $iShares Silver Trust(SLV)$ SHORTEST SHORT
    Having observed that $iShares Silver Trust(SLV)$was trending down during pre market I tried my hand for the first time at shorting.
    Thanks to @MillionaireTiger for the information on the strategy I feel more confident. This could have been a bigger short however I set a modest buy price when I went to bed 😊
    @TigerStars @Daily_Discussion @TigerWire $iShares Silver Trust(SLV)$
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  • Kiwi Tigress
    ·04-05
    TOP
    In the stock market's tumultuous swing, Short selling's a risky, wild fling. Bears bet on decline, But it's a fine line, For bulls, it's a challenging thing!
    I’ve been doing some research around short selling and at some stage when the timing is right and I have more funds available I’m going to try short selling 👍👎⬇️📉⤵️
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  • Shyon
    ·04-08
    TOP

    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.

    @MillionaireTiger  @TigerStars  @CaptainTiger  @TigerSG  @TigerClub  @Daily_Discussion  

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  • nomadic_m
    ·04-04

    *How exactly do you make money from shorting stocks?*

    simple example below:
    1. You borrow 100 shares of a stock trading at $10 per share ($1000 total value).
    2. The stock price falls to $5 per share.
    3. You buy back 100 shares at $5 per share ($500 total cost).
    4. You return the shares and pocket the profit: $1000 (selling price) - $500 (repurchase cost) = $500 profit (minus any fees).

    no, I'm too chicken to short stocks

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  • I think tesla is down trending as its below its 30 days moving average . I do suggest can sell put / ahort sell it 10% below its recent low $160 around 145 for a month or 2 $Tesla Motors(TSLA)$
    Here to support my favourite tiger
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  • Hen Solo
    ·04-05
    Utilizing short selling as a tactic amidst a market downturn demonstrates a strategic mindset aimed at capitalizing on potential profit opportunities. With this newfound understanding, I feel empowered to explore short selling strategies confidently. Gratitude for sharing such an insightful article that has equipped me with valuable knowledge in navigating the complexities of the financial markets.
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  • Aqa
    ·04-04
    During downtrend, both short and long are good. We should always be on the lookout for opportunities to dive into shorting stocks and holding some stocks for long. Thanks @MillionaireTiger
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  • DiAngel
    ·04-04
    No idea how short selling works. It might make a drastic U-turn and you will end up like Panda bear 🐼 2 black eyes. Just buy when low and sell when there is a profit
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  • highhand
    ·04-04
    not a fan of short selling. just wait for support and buy more great stocks. the only time I would go short is maybe buy some puts to hedge the temporary down trend, but this is tricky.
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  • Aqa
    ·04-04
    Short selling during downtrend is a savvy way to score profits. Thanks for this article. Liked and shared @MillionaireTiger
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  • MHh
    ·04-04
    No, shortselling is too risky. Doing it via options would be better to contain risk and can probably yield higher returns
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  • 🫰🤣 ....  seasoned.... SEASONED [Facepalm]  aww ga'mon... Lookong forward to a few miricles team 👇🤣

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  • Spiders
    ·04-08
    I choose not to engage in short selling as it exceeds the level of risk I am comfortable with.
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  • Why short? Just buy more, can? [Chuckle]
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  • ECLC
    ·04-05
    Have yet to master the art of stock trading, short selling is too risky.
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  • Kok
    ·04-04
    I used to do it in the past and got burnt. Never gonna do it anymore!
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  • why not, if its legal and allowed
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  • sure why not
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