01/16 Using Short Selling To Profit In Day Trading
Short selling is a technique used within many day trading strategies. It starts when a trader borrows stocks from a broker and sells them. In the process, the day trader hopes that the price of the sold stocks would fall. That way he will be able to buy them for a lower price, sell them and then pay the broker his debts. Not all day trading strategy allows day traders to buy shares for a price lower than their lending price. It is not at all times that brokers lend stocks too. Lastly, some day trading strategies don’t permit short selling when the price dips. These three are the falls of using short selling to profit.