Short selling, also known as short selling, short selling (Hong Kong) and short selling (Singapore, Malaysia), is an investment term of stocks and futures, and it is also an operation mode of the stock and futures markets. In contrast to bulls, in theory, it is to borrow goods to sell first and then buy them back. Short selling refers to selling stocks at the current price in the expectation of future market decline, and buying them after the market decline to obtain the difference profit. Its trading behavior is characterized by selling first and then buying. In fact, it is a bit like the credit transaction model in business. This model can profit in the wave band of falling prices, that is, borrowing goods at a high level and selling them, and then buying and returning them after falling. For example, a stock is expected to fall in the future, borrowed and sold when the current price is high (the actual transaction is to buy a put contract), then bought when the stock price falls to a certain extent and returned to the seller at the current price. The difference is the profit.

The main points that should be paid attention to when implementing short selling are:

First, investors are required to have the ability to judge the overall trend of the market.

Because shorting is only applicable when the market is in a downward channel, at other times, such as when the market is in a horizontal consolidation stage or a bull market stage, this operation skill cannot be adopted. Therefore, investors are required to recognize the general direction of future trends.

Second, short should grasp the rhythm of stock price operation, sell when the stock price rebounds and buy when the stock price plummets.

On the way down in a weak market, there will often be a short-term rebound and a diving plunge. Investors should make full use of this irrational change opportunity in the market and make maximum use of the price difference opportunity created by the wide fluctuation of stock prices to obtain profits.