@CTUCyberGroup Lesson: SHORT! SHORT! SHORT!
What a comeback at the end of the week in CyberGroup Room! If you look at the chart of the Dow Jones Industrial Average it might not make too much sense on what I’m talking about, but for the students it was raining money! We had great trades on $NQ $P & $JKS.
As crazy as my students would find it there are many retail traders that don’t short stocks. For anyone that doesn’t know what a short is I’ll give you a brief explanation. It’s when you borrow stocks from your broker at a certain price thinking the price of the stock will drop. When the price drops, you are actually buying the stock to cover the shares that you have borrowed and your profit is the difference from what you originally borrowed it at. For any trader who doesn’t short, unless for a specific reason such as trading out of an IRA, you are missing out on a TON of profit. Stocks drop twice as fast as they go up, the analogy goes; you take the stairs up and the elevator down.