How traders Make Money Shorting Stocks

Many traders think money can always be made on long side but with this ever changing financial market dynamics money can be made in everyone of market irrespective of Long trade or short trade.
When it comes to shorting stock or Index futures , many people are in the dark. It is more challenging to be short, subject to squeezes; the return max out at 100% — versus unlimited upside for longs.

Shorting stock definition:Shorting means selling first the borrow stock and buying later at lower price. The difference between selling and buying at lower price is termed as profits excluding brokerage and slippage.

Basic Rules for Shorting Stocks which should be followed by traders.

1. Never short a  ...

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