Short Selling in Bearish Market
Different types of day trading strategies work in different market conditions. A Short selling is a very good strategy to earn in NSE market. In a bearish market, when the stock prices are decreasing, one can still make profits. Short selling is the term given to such trading technique. Short selling refers to selling of those stocks which are predicted to fall in near future it may be also in next 5-10 minutes or an hour. In short, selling, the trader borrows some stock from the broker / stock exchange and sells it. When the price of the stock falls further, he buys it at a lower price, making a profit. The shares are then returned to the broker / stock exchange.
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Features of Short Selling in Stock Market
- Short selling is a day trading strategy to earn money in bearish market.
- Professional and experience traders can only Short sell in Nse market.
- Short selling to be done only in Bearish Markets.
Short Selling in Gap down Markets
Sai Intraday Tips Gives Best Short Selling Tips in India. Gap down opening market is a very good for short selling. The term, Gap down refers when the Nse market opens at a price that is lower than the previous day's low. For example, if the previous day's low was 8150, and the market opens at 8050 levels, there would have been a 100 point full gap down. Such a situation indicates heavy selling of stocks and a lack of confidence in buyers. Gap down charts. This Gap down opening can be utilized by professional day trading short sellers to analyze which shares are going to decline further so that they can short sell them. When the price declines further, they can buy back at lower levels to earn money. Therefore Short selling is one of the most effective strategy for day traders in a gap down Stock market.