If you think a stock's about to lose its value, can you bet against it? Learn how short selling works, and hear whether we think it's a good idea.

1. How To Bet Against A Stock
Be your own financial advisor

2. Suppose there's this one stock

3. And you think it's going to crash

4. You wonder if you can profit from it

5. The answer:

6. It's called
“Short Selling”

7. Here's how it works

8. You first borrow
shares and sell
them

9. You buy them back later,
and return them

10. If you buy back at a lower price,
you make $$$

11. So, should you
do it?

12. Short selling is very dangerous

13. You can lose an unlimited amount of
money

14. But your upside
is limited

15. If the stock
price goes up

16. The broker will ask you to reserve
more cash

17. Or they'll force you to
buy back the stock

18. To make money, you have to
time it right

19. But that's incredibly difficult

20. “Markets can stay
irrational for
longer than you
can stay solvent”
-Keynes

21. Our advice: Don't do it

22. Bet ON stocks instead

23. Thanks for reading
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