How Do You Make Money Shorting a Stock (i'll try to explain...)

published 10 months ago by ClayTrader

I've done it before, but I want to try to explain "shorting a stock" once again from a different vantage point. If you are a beginner trader and just getting started in the stock market, perhaps you've heard terms such as "shorting", "going short", "being short" and other variations and always wondered what does it mean? Or more accurately, how does shorting make you money? As a warning, the first time you learn about how to make money shorting a stock, it will sound very backwards and bizarre, but it is 100% legit and possible. One of the main goals of any day trader (or swing trader) is to have maximum flexibility and open up as many money making opportunities as possible within the market. When you learn about and understand what shorting is and how you can make money from it, you truly begin to open up that many more money making strategies and systems that can assist you in becoming a consistent and profitable trader. Let me try to explain how this strategy of "shorting" works and most important, how it can add flexibility to you as a trader and allow you to make that much more money in your trading ambitions!

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