Ask Colin

Is it true that most successful technical analysts only trade in an uptrend or do they also trade in a downtrend by short selling?

They do both. However, short selling is more risky, more complicated for the broker and therefore more expensive. It is really a game for big investors who know what they are doing. Doing it with options and warrants is an alternative for the small investor, but the odds are stacked against you by the system and you have big leverage, which equals risk. They are also very difficult instruments to fully understand.


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