Would You Consider Short Selling During Downtrend?
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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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@icycrystal @Shyon @MHh @melson @rL @TigerGPT @Aqa @Mrzorro @HelenJanet @SirBahamut @GoodLife99 @LMSunshine @DiAngel
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
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 $iShares Silver Trust(SLV)$
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 👍👎⬇️📉⤵️
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
*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
Here to support my favourite tiger
🫰🤣 .... seasoned.... SEASONED [Facepalm] aww ga'mon... Lookong forward to a few miricles team 👇🤣