Short selling is a difficult yet potentially profitable strategy employed by professional traders, allowing them to benefit from markets that are in decline. In Australia, short selling can attract investors to capitalise on the bear market. By borrowing and selling shares at their peak price, traders can profit when they buy back the same number of shares at lower prices and return them to their original owners. However, short selling comes with some risks that must be understood before attempting.
This article will discuss strategies for successful short selling and associated risks with such investment strategies in Australia.
Successful short selling requires a proven strategy. With the right mindset and knowledge, traders can anticipate market trends to generate profits from price declines. Traders should develop a trading plan, considering the fundamentals of the stock they target and market sentiment.
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