Short (Bear/Short) Short Overview Short, also known as short, short, buy short sell short (the term used forextradingbrokerwebsite Singapore forex trading site Malaysia), forextradingwebsiteonline the opposite of long, refers to the investor does not hold securities in the hands of the securities borrowed from the brokerage firm to sell short parts need to be covered within the day, otherwise the closing can not be delivered (delivery of the buyers securities bought), that constitutes a breach of contract delivery short usually in the forecast Short selling is a special operation that allows investors to profit even if the cashback forex is declining. If the market is declining as expected, you can earn the difference when you cover the low price, but if the market is rising instead of declining, there is no limit to the price increase in theory, and you will lose a lot when you cover. Short sales; even if allowed, there are often more restrictions When the stock price rises continuously, the short will not be able to cover, in the Taiwan stock market, the stock trading method to set up extremely harsh restrictions, as this restriction first appeared in the Yucheng continuous soaring, so commonly known as the Yucheng clause, in 1997, Yucheng stock price rose rapidly from 65 yuan to 233 yuan, resulting in short positions were forced to call the margin six times, and finally Still be cut off in the Taiwan stock market used to use this clause of the stock Yucheng construction, Donglong hardware, Shun Dayu, elite computer, soaring electronics, and recently the creative electronic stock price changes are determined by the contrast between the power of the long and short positions long will predict price increases, thus making a purchase decision short because the price is predicted to fall, will sell the hands of the stock as in other transactions, when When long and short agree on the price, a deal is reached short, short market, long, long market Short is an investor and stock traders think that the current stock price is high, but the prospects for the stock market is bad, the stock price is expected to fall, so the borrowed shares are sold in time, and then bought when the stock price falls to a certain price, in order to obtain the difference in earnings using this first sell and then buy, from which to earn the difference in price People usually call a stock market with a long-term downward trend a short market, which is characterized by a series of big drops and small rises. Long refers to investors who are bullish on the stock market and expect the stock price to be bullish, so they buy the stock at a low price and sell it when it rises to a certain price to gain the difference. The stock market is called the long market, the main feature of the stock price change is a series of large up small down short characteristics 1. The market is generally bullish, the popularity is boiling, the stockholders are crazy to grab into, and the short market is coming aura 2. Investors have abandoned, and the upcoming ex-dividend and ex-rights stocks have no performance 6. Popularity is dissipated, not strong will to chase high 7. 6 days RSI between 20-50 8. macroeconomic indicators are obvious downward trend, the surrounding markets have fallen, the government has adopted austerity policies on the capital market, prices are rising rapidly 9. technical line pattern shows a bottom than a bottom low 10. 6-week average from the top down below the 13-week average 11 The 26-week SMA is down, and the index or stock price is driven by a short position below the 26-week SMA. The short position is driven by a long position in this order: a short selling opportunity at the daily 6-day SMA appears → a selling opportunity at the 18-day SMA appears (the 6-day SMA crosses the 18-day SMA in the process) → the weekly 6-week SMA crosses the 13-week SMA → the 26-week The average line goes short, the index runs below the 26-week average line; at the same time, the 6-day average volume line runs below the 36-day average volume line, the volume is added to match the operation of the short sell and then sell resolutely sell completely sell the impact of shorting may follow the example of foreigners, delineating some stocks that can be shorted for small and medium-sized investors, the launch of shorting mechanisms such as stock index futures under the current conditions can only mean an increase in risk shorting mechanism is the strong As a vulnerable group in the stock market, without legal and institutional protection, small and medium-sized investors are extremely vulnerable to this dangerous game. At present, the debate on the introduction of shorting mechanisms such as stock index futures is flooding the media, in which everyone is saying the same thing, pointing out the necessity, urgency and benefits brought to the market by the introduction of shorting mechanisms, but no one mentions its This is the usual practice of our media, when it is good, everyone is unanimously singing praises, not to hear the opposite opinion; after the problem, it is a voice of blame and shirking responsibility In fact, this is a very irresponsible practice Shorting mechanism for the stock market, of course, has a positive significance and role, but its negative impact should not be ignored, especially for such a short history, the legal system is not yet sound, the rules are still flawed, the negative impact should not be ignored. Especially for an emerging market like ours, which has a short history, a legal system that is not yet sound, rules that are still flawed, and information that is extremely asymmetric, its negative effects, if not given sufficient attention and effectively controlled, can be lethal enough to destroy the entire market and cause financial turmoil, destabilize the situation, and hinder the healthy development of the Chinese stock market. The purpose of pointing out the negative effects of shorting mechanisms such as stock index futures is not to prevent their introduction, but to remind the majority of small and medium-sized investors that the introduction of shorting mechanisms under the current conditions means and can only mean an increase in risk for small and medium-sized investors. Small and medium-sized investors involved in this dangerous game is extremely vulnerable because the shorting mechanism for the bankers, of course, there are also great risks, but the temptation of huge profits is huge, in the temptation of huge profits and the lack of supervision, they will do whatever it takes, will spread more false information that is difficult to distinguish the truth, will be more frequent dealership, joint price manipulation, etc. Especially in the shorting mechanism, the stock index and stock price plunge will Frequent, and such a plunge will make a part of the group and individuals to gain huge profits, the market will appear the real short side, and for the small and medium investors can only rely on the rise in stock prices and profits, how can have the ability to fight with the short side and win the battle? For the majority of small and medium investors, the shorting mechanism must have a wariness and vigilance; for the regulatory authorities, we strongly appeal, in the introduction of shorting mechanism, must be cautious, especially to introduce relevant laws and regulations, and strengthen supervision, and effectively protect the legitimate rights and interests of small and medium investors Shorting is the expected future market decline, the hands of the stock at the current price to sell, to be Short selling is a mode of operation in the stock and futures markets and is the opposite of long, theoretically, it is first to borrow goods to sell, and then to buy back the general formal shorting market is a neutral position to provide a platform for borrowing goods is actually a bit like the credit trading model in business This model can be profitable in the wave of falling prices, that is, first at high levels Borrowed goods to sell, wait for the fall in the purchase of restitution so that the buy is still low, the sell is still high, only the operating procedures are reversed short trap identification skills The so-called short trap, simply put, is the market mainstream money vigorously short, through the plate shows obvious weakness in the pattern, to induce investors to conclude that the stock market will continue to fall sharply, and panic selling market conditions recently A period of time, a sharp turn, leading stocks have dived, the index continuous rapid decline, this time investors should beware of short traps for short traps to discern mainly from the news, capital, macro fundamentals, technical analysis and market popularity and other aspects of a comprehensive analysis and judgment: a. Analysis on the news side of the main capital will often take advantage of the propaganda to create an atmosphere of shorting so when investors encounter Market short constantly, instead of being extra careful because, it is in a variety of short news flying heavy bombardment, the mainstream funds can easily build positions Second, from the volume analysis short trap in the volume of the characteristics of the stock price with the persistent decline, the volume is always in the irregular shrinkage, sometimes the plate will even appear no volume empty fall or no volume plunge phenomenon, the transaction of individual shares in the plate is also very inactive To investors to create a negative trend of the atmosphere of a long way off precisely in this atmosphere of manufacturing pessimism, the main force can often easily build a low position, thus constituting a short trap (the bottom can not blindly, to seize the real opportunity!) Third, from the macro-fundamental analysis need to understand the fundamental impact of the broader market strength of policy factors and macro-fundamental factors, analysis of whether there are substantial short factors, if there is no special substantial shorting factors in the stock market policy background, while the stock price is persistently plummeting, it is easier to form a short trap Fourth, from the technical analysis of short traps in the K-line trend is often characterized by continuous Several long negative plunge, through a variety of strong support levels, sometimes even accompanied by downward gap, triggering a chain reaction of panic in the market; in the analysis of morphology, short traps often deliberately triggered by the technical pattern of the broken, so that investors think that the market down space is huge, and have to throw their holdings, so that the main force can take a large number of cheap stocks at low levels in terms of technical indicators, short traps will The technical indicators lead to serious divergence characteristics, and not one or two indicators of the divergence phenomenon, often multiple indicators of multiple cycles of simultaneous divergence V. Analysis from the market popularity due to the long decline in the stock market, will form a heavy hedge in the market, popularity is also constantly being set in the depleted However, it is often in the market popularity is extremely low at the moment, it just means that the stock market from the real It is worth noting that after four years of a depressed bear market, the systemic risk of a sharp decline in the index has been very small, overly bearish future market, it is inevitable to fall into a new short trap
