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Rais M
27 Feb 2020
Accountant at SME
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Collin Seow CFTe, CPM
26 Feb 2020
Founder at The Systematic Trader
Shorting is only for speculation. When you short, it is trading using margin. On top of that, the loss is indefinite because price can keep going up. Saying that, you can use it to hedge your position or take outright naked positions but you need to know what you are doing. For most people, I dont advise them to do it without training.
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Markets goes up and goes down. A downward trend can always turnaround and goes upward again.
Unless you have a understanding on how market works, in terms of economics, charts, trends, I do not recommend you to short the market because it might suddenly turn around and goes up again.
It's like saying the stock market is performing and going on a uptrend. Some people might just buy thinking it will go further up as they do not want to miss the boat. But suddenly, the Covid-19 becomes widespread and stock markets suddenly just turnaround and goes on a downtrend.