facebookIs shorting advisable given that there is a downward trend? What are some banks that offer a better rates? - Seedly

Anonymous

27 Feb 2020

Stocks

Is shorting advisable given that there is a downward trend? What are some banks that offer a better rates?

Discussion (2)

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Rais M

27 Feb 2020

Accountant at SME

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.

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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