When Should You Short a Stock? (Step #1)

published 9 months ago by ClayTrader

If you want to have success as a stock trader and give yourself the best chance at making consistent money online, you need to open up as many opportunities as possible. In order to open up opportunities, you need to operate at maximum flexibility as a stock trader, which means giving yourself the ability to make money when a stock price goes down in value. If you are a beginner to the stock market and trading, this probably sounds like a very strange concept... and all in actuality, it is! But yes, when it comes to the stock market it is totally possible to make money even if a stock is dropping in value! This is known as "going short", "shorting", and any other variation. Knowing this, the next logical question in terms of learning how to short a stock is... well, "when" should you look to short a stock? I want to show you step one in this process of when you should be most interested in shorting a stock so you can make money when the price of that stock goes down. Let me show you what I mean.

more episodes from Learn To Trade Stocks and Options