When you are Short a stock, you are looking for the price to go lower. Example:
- Sell MSFT at $44.30 on a Short alert
- Goal is to buy it back at a lower price than $44.30 to make a profit
- If you buy above $44.30 you have to take a loss
This is opposite of Long trade. You are first selling the stock because you believe it will go lower. Then you buy it back at a lower price to close the trade. Margin account is required at your brokerage for Short trading.
When the market is trending lower, there are more Short trading opportunities.