What is short selling?
You simply borrow stock that you do not own (from your brokerage) and sell it with the obligation to buy it back at some point in time, to cover your short sell. You sell a stock short anticipating that the stock will go down and you will buy it at a lower price than you sold, thus making a profit. When you enter a sell order for stock you do not own, your brokerage will automatically consider it a short sell. Some traders never short because of the unlimited risk involved. The SMS believes that traders will benefit from learning to use both long and short positions. But with that said, we also urge beginners to become profitable with long positions before going short. If you are on the right side of the market, it makes no difference whether the market goes up or down. Downtrends in the market frequently take place sharper and faster than uptrends. This happens because more traders play the market from the long side than do traders who trade both long and short. Bull markets don’t con
