What is short selling and what is the purpose?
When you short sell a stock you are borrowing shares from your broker. This is why margin fees are attached with short selling. The purpose is to make money as the stock (or in our case the stock market) falls. For example, if you short Microsoft at $50 and the stock falls to $40, you could close out your short position and make a 20% profit. Many subscribers of our long-term and mid-term systems short to increase their gains during downtrending markets. The alternative is to sell your current position and patiently sit in cash during a sell signal.
