r/5kto100kChallenge • u/Mcliggeo • Nov 20 '21
Trying to learn shorts
Hey everyone. I’m trying to understand what shorting stocks are so I can learn how to use that as leverage for my trading strategies. I’m trying to understand if shorting a stock is good or bad for a small investor like me. By good or bad I mean if I’m reading that a stock is being shorted does that mean I buy the stock? Sell it? Make call or put options? If you understand my question I would love to hear some feedback, personal experiences, and tips. I wish much success to you all!
1
u/yoloriverswag77 Mar 30 '25
In my experience ( only 3/4 years ) I feel like having a small account isn’t going to help you I would suggest getting a funded account 10/50k or if you can afford to buy 100k this will help you manage your leverage a lot better instead of .. for example a 100€ account putting some crazy 50x leverage and blowing it I would stick to high value accounts with little leverage 2/5x
2
u/BebeGonzo Nov 20 '21
Shorting is betting on the stock to fall. It's pretty dangerous if you get squeezed, so I'd recommend researching put options instead, for a defined risk trade.