Sunday 16 October 2011

Short Selling

Futures Trading is similar to trading in the stock market except the profit or loss you make is likely to be higher and faster. As such, in order to succeed in Futures Trading, you must first understand how the price moves and keep up with its pace. Another advantage of trading in futures is that you are allowed to short-sell.

When you trade in the stockmarket, there are only 2 scenarios :-
1. You buy stocks - Price goes up - You sell back stocks for a PROFIT.
2. You buy stocks - Price goes down - You sell back stocks for a LOSS.

When you  trade in the Futures market, there are 4 scenarios :-
1. You buy Futures contract - Price goes up - You sell back contract for a PROFIT.
2. You buy Futures contract - Price goes down - You sell back contract for a LOSS.
3. You sell Futures contract - Price goes down - You buy back contract for a PROFIT.
4. You sell Futures contract - Price goes up - You buy back contract for a LOSS.

As such, there are more opportunities in the Futures market whether prices are on an uptrend or a downtrend. You just need to understand how the market moves in order to take advantage of the price fluctuations by going long (buy) or short (sell) at the right time.

If you are interested to start trading Futures and learn how to trade at the same time, please contact me to find out how you can open a trading account together with free  training (online trading, technical analysis and trading strategies). Find out how you can gain new knowledge and skills, enhance your ability to generate income as well as open up a new career option as a full-time trader just by investing in the futures market.

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