What makes the stock market such a lucrative trading platform is that you have the ability to make money when stocks are moving up and when stocks are moving down. When stocks are moving down, trading is called selling short. Selling short has been
around since the markets began and is a legal and accepted practice among professional traders. No other investing platform has the ability to make you money when an investment is going down in price.
When you sell short, you trade stocks with the anticipation that the price is going to move down. To sell short a stock, you must borrow the stock from your broker for a nominal fee and you must return the borrowed stock upon completion of your transaction. This is called "buy-to-cover" which means you are intending to return the borrowed stock. It used to be that selling short was restricted primarily to brokers, investment bankers, and hedgers. Nowadays the borrowing and returning is all done automatically via computers and the internet, which allows all traders access to selling short.
If you learn to sell short, you will be able to trade stocks successfully in the stock market, regardless of whether the market is bullish or bearish. You will be able to take advantage of opportunities that most traders can't. If you are interested in Options you need to understand selling short to be able to properly buy and sell puts.
Selling short is not exactly like going long (buying in the anticipation a stock will move up) and requires specific indicator and chart analysis as well as a thorough understanding of how a stock falls in price. TechniTrader®'s sell short training teaches you how to become successful at selling short with critical information found nowhere else.
TechniTrader®, the educational division of Decisions Unlimited, Inc., is strictly an educational service for the serious investor and trader. It does not represent, nor is it sponsored by any vendor, provider, or broker. We are an independent educational service.
Copyright © 2007, Martha Stokes, C.M.T. & Howard Johnson. No part of this web site may be reproduced in any form without expressed written consent.

