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post #1 of 3
Thread Starter 

Hi All,

I'm still paper trading in the process of learning how to do this.  I've made a series of good trades and I'm building some confidence.  I need some clarification that what I'm doing on paper would be feasible in reality.


Specifically, about half my paper transactions so far have been shorts.  I routinely generate cash doing this, but it seems that shorting stocks this often is somewhat unusual - the vast majority of positions seem to be long.  Moreover, in what I've read, it seems that panic ensues when markets decline.  If short selling is an available option, I don't understand why professional traders lose so much money in bear markets.  What am I missing?


Thanks much,


post #2 of 3

You are not missing anything.


For some reason, there is a misconception that shorting is bad. Majority of investors will never short a stock because they only care about long term growth. For traders, going short is as easy as going long, in fact, there are many traders here that prefer shorting because its easier to profit at times of panic.


If professional traders are losing money during a bear market, its because they are playing too many stocks to the long side, or timing the short entries wrong.

post #3 of 3

Hi Arnim. Did you see StockJock-e video and the info for shorting? I will admit I have never done it but that was because of ignorance on my part. I am looking forward to shorting but right now it's easy to pick up money on a normal swing trade and I haven't had to short. I found out yesterday that you also have to have a margin account to short stocks. Just a heads up for ya. Good luck.

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