I’ve explained about short selling in an earlier post. I hope you have concluded that having short selling in your trading arsenal is an absolute must. I read somewhere that if you do not understand the concept of short selling and have never short sold before, then you can’t call yourself a trader just yet. This is open to debate, but well… I do agree with that statement.
Here I’ll be sharing a real-life example of short selling that was executed by me last week.
Below is the graph of EUR/JPY Spot CFD that I traded last week. I shorted the CFD at level 165.30 (at arrow number 1). The next day, my target was reached at 162.54 (at arrow number 2). That was the level where I bought back the CFD. In this example, a profit of 276 pips was achieved. All when the market fell.