Short selling - how to for a UK retail investor

ali_bear

Thanks all food for thought, I will read up and look at the options. 
I just want to be able to gain from a position where, for example, I believe a particular company is headed for long term decline. 

masonic

ali_bear said:

Thanks all food for thought, I will read up and look at the options. 
I just want to be able to gain from a position where, for example, I believe a particular company is headed for long term decline. 

A decline in the short term is what is needed for an effective short. Over the long term, the cost of keeping a position open would eat away at potential gains.

Tucosalamanca

Do you want to trade options, CFDs, place spread bets or simply buy ETFs?

Have you considered the various tax implications? Different brokers for different purposes.

There shouldn't be unnecessary risk. If you're taking a big risk I'd say that your trading strategy is wrong.

You can be right nine times out of ten, but if the one loss is uncontrolled, you will lose money.

Money (risk) management is the most important factor.

Look for a practice account and go from there but remember as soon as you go 'live' it's a whole new world.

george4064

If you're asking an Internet forum how to short shares, you shouldn't be shorting shares in thr first place. Trust me, you'll regret it if you do actually manage to short a share or two.

ali_bear

george4064 said:

If you're asking an Internet forum how to short shares, you shouldn't be shorting shares in thr first place. Trust me, you'll regret it if you do actually manage to short a share or two.

I asked here for information. I already made it plain that I am not naive, that I am numerate, I know about managing risk and I have some spare cash to gamble in this way. Is this mumsnet? 

msallen

ali_bear said:

george4064 said:

If you're asking an Internet forum how to short shares, you shouldn't be shorting shares in thr first place. Trust me, you'll regret it if you do actually manage to short a share or two.

I asked here for information. I already made it plain that I am not naive, that I am numerate, I know about managing risk and I have some spare cash to gamble in this way. Is this mumsnet? 

Fair enough. After all you've heard of it so what could go wrong.

adindas

ali_bear said:

Hello
I am looking into how to make money from shares that are falling in value. I've heard of "short selling" and would like to find a broker or trading platform that will allow me - as a UK retail investor - to do this on UK or NYSE shares. 
Obviously there is considerable risk involved. I am fairly experienced with my S&S ISA. I have some savings I can afford to gamble in this way (outside of the ISA which is fully subscribed). 
Can anyone recommend such a service? 
Thanks, 

ali_bear said:

I asked here for information. I already made it plain that I am not naive, that I am numerate, I know about managing risk and I have some spare cash to gamble in this way. Is this mumsnet? 

People normally go "long" before going "short". There are various ways of going short such as CFD, Option Trading (put option), Spread betting or buying an inverse ETFs (A safer option).

Also People will normally start with paper/training account before starting with real money.

With going short, It could also be enhanced with leverage, there is no limit of the money you could loose.

There are a few low cast trading platform available In the UK a few to name: Trading212, eToro, Interactive Broker IBKR, De Giro (fee is complicated), Freetrade, Lightspeed (not cover by FSCS?)

If you google it, there are tons of information regarding short selling. This is a simple easy to understand illustration about the short-selling.

Also, there are a few authoritative free training materials available on you tube to learn for beginner to intermediate level. A few to name.

Trading 212 https://www.youtube.com/Trading212/videos Trading 212

IG.com https://www.youtube.com/IGcom/videos

TD America trade https://www.youtube.com/@TDAmeritrade/playlists

Pepperstone https://www.youtube.com/@Pepperstone/playlists

You could start from here and see how you are performing using the paper / training account without using real money:

Shorting a stock is a trading game. With exception to future commodity trading, a day, short term Trading is a zero sum game For someone to win there will be someone else in the other end will lose their money. Good that you are aware about managing risk, and damage control; one of the most important things in trading. Good luck with your learning journey.

ali_bear

Thanks for the information. I expect the regular internet will serve up a lot of USA-specific information but I'll give that a go also.