6b. Trade example – short


Short selling involves increased risk and your loses are unlimited. We recommend avoid it it as a beginner. It requires special account on your discount brokerage and some good capital. Beginner investors should avoid short selling for now, and instead purchase put options if your are pessimistic about the market or for hedging.

There are also some inverse ETFs that you could use instead of shorting. We will cover ETFs, inverse ETFs and Short selling in the near future.

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