shorting stocks is not harmful, it is just a statement for retail investors; For institutional investors, shorting the stock market is a profit, earning a lot of money.
the most typical thing is that after the bull market in June 215, the A-share market suddenly turned from a bull market to a stock market crash. What kind of panic killed the market is obviously that there is a very large short-selling force. If there were no super-large funds to short, the strength of the sell-off would definitely not be so strong, with 1, shares falling, 2, shares falling and collective falling in just 17 minutes. This short-selling strength is huge. This kind of short-selling power is really harmful to A-shares, and everyone is suffering from heavy losses (except securities lending), but shorting the stock market fattens those who short stock index futures and makes them profitable.
why is shorting the stock market harmful to retail investors?
I think retail investors are really victims of the stock market. The reason is that A shares stipulate to make more money, that is, to buy low and sell high can make profits, while to buy high and buy low is to lose money. However, except for special circumstances, they often participate in stock index futures and margin financing and securities lending, which have shut out 99.6% of retail investors. This is the real reason why I think retail investors are victims in the stock market.
reason one: it takes 5, yuan to open an account in margin financing and securities lending, and the margin financing and securities lending can participate in short selling to make money; That is, high-level securities lending, low-level coupons bring profits, and retail investors are not qualified to participate.
reason 2: futures account also needs a threshold of 5,, which also keeps retail investors out! Stock index futures can make more money by shorting, and the most favorable thing is T+, which will not be restricted by positions. If something is wrong, run. And the stock is different from T+1, and you have to bite your teeth to sell it the next day.
The above method of shorting the stock market has shut out retail investors, which shows that retail investors can only make more money in the stock market and are not qualified to participate in shorting to make money. The answer is obvious, and shorting the stock market is absolutely harmful to retail investors.
However, for different institutions, short-selling stock index futures in large quantities first, and then use some funds to short the stock market in the stock market. Although the stock market is losing money, the other side is making big profits, and all of them are making money. Another method is that when the stock price is high, first short the stock at a high level, and then short the stock price in the stock market, so that the short seller can make the most profit.
In short, if there are differences between the stock market and stock index futures in terms of systems, super-large funds can seize the gap to make money. We should put the stock market and stock index futures in the same system, so that the stock market will not be restricted. Under the premise of fair competition, investment, profit and loss are resigned. And fair competition under an unfair system makes everyone convinced.