Investors all know that if the listed company corresponding to the stock is not well managed, it may face the risk of delisting and its share price may be zero. At present, all kinds of futures listed in China's futures market are commodity futures except stock index futures, and because of the existence of production costs, commodity prices will not fall to zero when they fall. When the price is lower than the cost, the manufacturer will face losses and reduce supply. In the case of constant demand, the result is that the demand for goods gradually exceeds the supply. This market force will gradually return the price to the cost, rather than reducing it to zero. Therefore, when commodity prices fall near the cost line, it is not appropriate to short. For example, in the financial crisis in 2008, steel prices plummeted, and the lowest fell to around 3,300 yuan, which has fallen below the cost. It is not appropriate to short at this time.

Comply with the general trend

The most important thing in investment is to follow the trend, buying on dips in the upward trend and selling on rallies in the downward trend, which requires investors to have the ability to judge the overall trend of the market. Because shorting is only applicable to the market in the downtrend channel, such as the market in the horizontal consolidation stage or bull market stage, this operation skill can be omitted. Therefore, investors are required to recognize the general direction of future trends. You can't go against the market, and you can't short for the sake of shorting. Once you make a mistake, you can only throw watermelons and pick up sesame seeds.