This tutorial is for entertainment purposes only. Short selling is a real financial strategy, but it's not something to be taken lightly. It's like playing the stock market, but with more chance and less skill.
Step 1: Understand the basics
Short selling is when you borrow a stock at a high price and sell it at a low price. Simple, right?
But, it's not as simple as it sounds. There are risks involved, and it's not something to be taken lightly.
Look for a stock that's going up, up, up! That's right, the ones that are going up are usually the ones that will tank next.
Just kidding, it's not that easy. But, you can look for stocks that are overvalued, or ones that have had a recent spike and are due for a correction.
Step 3: Borrow the stock
You'll need to borrow the stock from a broker or another investor. This is where things can get a little sketchy.
Step 4: Sell the stock
Now, sell the stock for the current high price. Easy peasy, lemon squeezy.
Step 5: Buy back the stock
When the stock price drops, buy it back at the lower price. Now, you can return the stock and pocket the difference.
Hyperlinks to further reading:
Short Selling Examples: Because You Want to See Some Numbers Short Selling Risks: Because It's Not All Rainbows and Unicorns