Why selling short?
Short traders have a psychological edge. Fear and panic are more powerful feelings than greed and euphoria. Price declines are, in average, 3 times faster than price increases. An old rule: Bad news travel ten times faster than good news. A panic sell-off is not necessary for a profitable short trade. Oftentimes, just buyers indifference is enough to cause a price decline. Short trades assure better trading conditions. By selling short, traders can make money even during negative market environments. Following high-volume selling trends often leads to short-term massive gains. Certain market situations allow for precise and profitable breakdown predictions: • Fridays profit-taking sell-off. • Triple and quadruple witching. • Fear before earnings conferences. • Market indexes approaching prior resistance levels. • Market indexes exhibiting technically overbought levels. • Fear before governments announcements. • Market weakness during scandals and unrelated bad news. • Industry group/se
