Short Selling: Big Profits or Dangerous Trap?

This week on Talking Wealth, Janine Cox reveals how short selling can deliver big profits when share prices fall, but why getting the timing wrong can lead to devastating losses. She explains how short selling works, why market direction matters, and how leverage and short squeezes can quickly turn a profitable trade into a costly mistake. Janine also explores how traders can recognise opportunities in a bear market while understanding the risks and protecting their capital.

• 0:01Speaker 00

  This podcast is brought to you by Wealth Within, a global leader in stock market education. For more information on our courses, head over to wealthwithin.com.au. Please note that the information in this podcast should not be considered personal financial advice. Enjoy.

• 0:19Speaker 01

  Hello and welcome to Talking Wealth. This is Janine Cox, Senior Analyst at Wealth Within. Today, I really want to get into this area of short selling with you. And part of the reason for that is because we're expecting at some point that our market is going to peak, whether it's in six months or 18 months, it's getting closer to that long-term peak. And these peaks, when they occur, they can unfold in different ways. So they can take you by surprise. It'll often be when everybody thinks that the market is going to go back up again, that that's when the peak forms. So this is a really important time to be

• 1:03Speaker 01

  preparing for this, and is why I decided to use the title, Big Profits or a Dangerous Trap, because it can be very profitable to look at a chart and then pick the points where a stock is most likely to continue falling, such that you can make money much faster on the downside than it takes to make that same amount when the stock's rising. Now, while it can deliver big profits, the thing is, when the share price falls, there can also be traps. So you might actually execute a trade and get into it in a really

• 1:46Speaker 01

  timely way, but then it's being able to close out the position at the right time, such that you're not being squeezed out of it. So we're going to look at short selling, how it works, talk about direction and why that matters, also around the risks with leverage and what they call a short squeeze, and how traders can prepare for these opportunities in a bear market when it happens. And you don't want to be taking unnecessary risks. That's the main point here. It's all about risk. So if you could make more money from a falling market in just a few months, then it could take a year or a couple of years

• 2:30Speaker 01

  to make, would that spark your interest? It's one of the big attractions to short selling. It's why so many people will say that that's what they want to do. When they get to know what the market does and how it moves and how it can be so fast, there's also that downside. When it's slow, nice and slow, you've got more flexibility in terms of your entry and your exit. You have to be so critically well organised and execute the trade with precision without doubts or second guessing. I guess going long, there's

• 3:12Speaker 01

  a little bit more room to move in that area. Because of course, prices can change quickly when a stock's falling. And part of the reason for that is some of the mechanisms in the market that will make that happen. It's the big end of town that are trying to short these stocks and then unwind their positions at the end is where what's called a short squeeze comes into it, where we often see this bounce after a stock's bottom. This is often where people who think that, oh, all of a sudden, the stock's become so much cheaper, this is an opportunity, and it'll get written up in articles and media because we've seen this bounce. And often, that article doesn't really explain to people

• 3:57Speaker 01

  the real reason of why that bounce has occurred. So these can be real traps when people are not experienced. And it's one of the reasons why you need to be educated to identify direction, whether the stock's going long or short, it doesn't matter, and be really good at identifying that. People underestimate the monthly chart every time. And so many people think, well, for short trading, I just need to go to a daily chart or micro chart to do that, when it's actually the big picture is the key to the whole thing, and whether that particular time is going to be the better short to be in. And I was looking at a couple of stocks

• 4:40Speaker 01

  with a client that I'm mentoring at the moment, and we were reviewing the initial fall from the top, because initially, he thought that was the best time to be in the short. But then when we saw how the stock started to unfold post that, the setup was really evident, and the next fall was far more dramatic, and was the one that was really worth waiting for. So it's often about really understanding how these stocks or markets unfold. And that can actually teach you patience, if you're willing to stop and look, rather than just jumping into the next best thing. So most people who try to get into the market and

• 5:24Speaker 01

  get into shorting, fail to really understand how to go long well first. Doesn't mean you have to learn to trade short term going long, but you really need to understand when a stock's indicating that it's likely to turn, and how far is it likely to pull back. Because if you can work out how far a stock's likely to pull back, that's going to tell you what the opportunity is. And look, these highs that form could take months, or they could take years to form. And if you get the ones that are going to take years to form, rather

• 6:03Speaker 01

  than just the shorter term ones, you're more likely to make more money and with less risk.

• 6:12Speaker 01

  So falling markets really can offer exceptional opportunities. However, it's identifying a number of important things, and it's all about the risk that you're taking. You don't want to take a trade that's only got the opportunity of making 10% when the risk to your capital is equivalent or greater than that. Because if the bounce happens when you're short selling, that takes you out, or doesn't give you a chance to get out at a reasonable level, what's the point in even doing it? Short selling can also be used as a hedge. That's something that a number of people have done to manage their portfolio,

• 6:56Speaker 01

  where they've been wanting to stay in particular trades for longer, because they might be in more long-term trades. But again, you need to understand when the best time is to set that hedge up. And the most dangerous assumption, I guess, of all, is that identifying a falling stock, is there enough in there to actually make money, as I was saying. So that's probably, I think, the biggest one. When I look at all of the issues, it's not just the short squeeze that would probably be fairly high on the list. It's also whether the person's

• 7:38Speaker 01

  really looked at what the opportunity is properly, and understood that downside on the stock, and which levels are key, and identified those clearly, set a plan in place, and then executed it with discipline, so that when the exit actually occurs, you get out, there's no second guessing. Now, we need to really understand how shorting works, because you've probably heard discussions about this. When you're trading long, you're just buying shares, you put your money down, and at some point, you may choose to sell them, and ideally at a higher price. So that's going long, make a profit. When you're wanting

• 8:21Speaker 01

  to go short to make a profit, you're actually doing the opposite. So the aim is to make a profit from the fall. Essentially, you're actually selling before you're buying. It really seems strange when you first think about it. But you're actually borrowing the stock, that's what it is. And in our market, back in the GFC, there are a lot of people who are exposed to the risks, trading shorts, that were not covered. So now, after the GFC hit, and it was probably, these things always get put in place a bit too late. And

• 9:03Speaker 01

  the biggest fall in our market happened in the second half of the year in 2008, which is when the decision was made by the regulator to ban the naked shorts, which means it has to be covered short selling. So essentially, when, say, for example, you choose to trade CFDs, a position is taken in that underlying. So it's not naked, there is actually a physical position taken. So your short selling is just a contract, right? But the broker is actually taking a position on the other side. So it's actually not a naked short. And these

• 9:45Speaker 01

  have been for retail investors cannot place naked shorts, they have to be covered. Now, there was a whole lot of controversy at the time, and the debate about that quite some time, actually. But today, the covered short selling is the one that's permitted. It's a minor thing. It's not really something that you need to be concerned about, because when you're taking a position with a CFD provider, what you're focused on is your risk and direction. The rest of it is up to them. You've just got to make sure that

• 10:27Speaker 01

  you understand where your capital is being held. That's probably the most important thing. There were people in the GFC who did not understand how that worked with the brokers that they were with. And this is where you could potentially lose a lot of money by being in that situation. Some people did. Their accounts were frozen. Now, I'm not sure whether everybody got all of their money back in that situation. It would be something you could do some research on and see what actually happened, just if you're interested.

• 11:04Speaker 01

  So I'm particularly referring to CFDs. We have a course that you can learn how to trade the CFDs. We recommend that people learn to trade long first, understand markets and how they unfold, understand direction, understand how to set rules, how to set stop losses, how to manage your risk. That's key. Once you can do that, then you're much more likely to really get the short selling process and how to do that well. So there are other ways though, of course, to take advantage of falling prices. I'm not going to go into that right here.

• 11:45Speaker 01

  It's really about understanding the market direction and that's really key. So the first dangerous trap is actually trying to trade short before actually mastering the long trades. So you're trying to learn how to drive a fast car before you've actually learnt how to drive. Why would you do that? Now, we've consistently emphasised that learning to trade long before attempting more complex strategies is really a high risk thing to do. While short selling can increase your profits, you need to demonstrate that you can actually

• 12:23Speaker 01

  trade without leverage first and then maybe you might go into more leveraged positions. Some people use marginal lending to get used to the idea of using leverage. If you've got a loan, I've always looked at it this way, that if you've got a loan and you're using your funds, essentially everything you're buying is from borrowed funds because you've got a mortgage, so you're paying that off. But you're paying interest on that while all the while you're going out and buying your groceries, you're buying other things essentially. It's all coming from borrowed funds, even if you've got an offset account and you might be taking money out of that.

• 13:05Speaker 01

  Every time you take money away from your offset account, you're incurring more interest. Something to bear in mind, isn't it? Makes you really carefully think about how you spend or invest those funds. Now, it's not about trading a lot, it's about trading well, about managing risk. That's the first priority. And if you can demonstrate that you can actually trade and sell when a stock goes into a loss, which some people find hard to do and is why they tend to start off having a situation where they're buying and holding stocks. We have a number of students who come through our courses that don't trade anything until

• 13:49Speaker 01

  they get through the course so that they can prove to themselves that they actually know what they need to understand before they go into any, any position, which is a really wise thing to do. Now, I'm not suggesting that everybody has to do that, it's really up to you. So the next thing is, is direction, which is going to really tell you the difference between an opportunity and a disaster, really what it is. But at the end of the day, you could apply analysis and believe that you've got the direction right, there's still a small chance that the stock would go the other way.

• 14:32Speaker 01

  And it's about being prepared for what possible scenarios could unfold before trading. So what, what's the point in actually learning how to trade short if you can't correctly identify direction? And people who have been trading on really short timeframes will struggle with this because you haven't been looking at the right stuff. So as I said, direction is the fundamental part of assessing your risk. As is risk reward. You want to know that it's going to be worthwhile being in the trade. What's the point of taking a short trade, even if the setup looks really good, when

• 15:16Speaker 01

  the downside is only another 5% from where it is? There's something to be clear on. Some stocks will at times fall a really long way. And how do you identify when those particular scenarios are unfolding? So you can see reversal patterns, maybe that's what you're looking for, reversal signals or patterns, and think that that signals that the stock's going to fall a long way and then it doesn't because there's something else on the chart. So this is where price, pattern and time are really important to be clear on when you're looking to short the market and understanding the trends, which relates to direction.

• 16:01Speaker 01

  Trend is key in this whole scenario. You've probably seen us hold Updale's book on the show. That book is incredible in terms of what it actually shares with you and appreciation for understanding how trends work, even though the trades are actually on a longer timeframe. It's really guiding you towards looking at that longer timeframe to be clear on those bigger moves. So if you're trying to identify those really small moves and some people, they look at a stock and think, oh, surely it can't go up any further. How about we get a short it now? Well, that's probably the highest risk time to do that, when the stock could just keep trundling up in the same direction.

• 16:46Speaker 01

  So this is where you've got to understand the difference between what's setting up as a potential correction, a consolidation and an established downtrend. Sometimes the established downtrend can actually be the way to go. Not trying to get it right near the top. Trend lines can show you or give you a good indication of what's going to unfold to the downside, but they don't tell you how far it's going to fall or when it's going to turn, which is what time does price and time do. So when markets unfold, they unfold in particular ways.

• 17:24Speaker 01

  I think that's probably one of the most, um, things that are not known by most people. It's not, it's not that, um, you can see a trend, but you might not understand how patterns that unfold when a stock is coming up to the top of its trend or when it's coming to the bottom. These are key to working out when those turns, the real turn is going to happen and not just a false one. So we, we see markets unfold over the long term, but there are lots of opportunities where markets and stocks might trade down for many months within those longer term trends.

• 18:09Speaker 01

  Some of the rises or the falls can really move quickly if there's a lot of fear at the time and there's a lot of shorting going on. We can also see at times that people will get margin calls, get stuck in this situation. And then we see the price move quickly because it, markets can take out whole groups of people set up at certain levels. And that's the other thing. You have to be really careful about showing your hand in the market in these situations. Also, um, when a stock has already experienced a major decline, the mate, the next part

• 18:52Speaker 01

  of the downside could be considerably less. Sometimes you get this situation where a stock will fall dramatically, bounce. That's when a lot of people are looking at it and thinking, oh, well, this could be another opportunity. Some people are thinking, let's go long here. Others are thinking, let's go short. The stock continues to fall down, but it might only go down for another month. Now, maybe that's enough depending on the percentage drop to the next level of importance. But it's going to be much faster and in terms of the shorter timeframe to act on that. Now, assuming that you've actually picked the top, don't worry about that.

• 19:35Speaker 01

  That's not, not the key thing here. You could get stopped out so many times trying to pick the top before it's actually confirmed. And this is why we always talk about getting confirmation. We, we share rules in our courses that help you get that confirmation and increase your probability of being able to short a stock at the right time. That's key. It's worth every cent to know this information. Dale's book, as I said, is a really good starting point. If you're just getting started in the market or trading mentor is a really good place to start as well. For people who, who haven't actually dipped their toes in the water or maybe you have

• 20:17Speaker 01

  had shares and then you're not really sure what you're doing, think, oh, this is not for me. That's just a cop out because it is for everyone. If you're willing to give it a go and just take the time to give yourself that gift of being able to read the charts and, and understand risk and, and know, and read the direction.

• 20:43Speaker 01

  So education should actually be on the top of your list here, ahead of your profits, so that you've always got that skill. And I remember in the GFC, there were people who were blaming the financial advisers. Now, there were some really shonky advisers out there at the time. I can remember reading stories about them, but the whole area, sector's been cleaned up and we have to work on the basis that most people were trying to do the right thing by their clients. But do you want to be the beggar of fish? Or do you want to be the fisherman or woman? I'm not saying it's fisherman or woman.

• 21:24Speaker 01

  It's like anything, if you want to make decisions about something that's going to have a dramatic effect on your future, it's about understanding what the risks are, regardless of whether someone else is making those decisions for you, or you're making them yourself. Now, where short selling becomes a really dangerous trap, and this is really the thing that gets people, because the leverage actually magnifies the profits, and that's what the attraction is to trading instruments like CFDs and short selling.

• 22:03Speaker 01

  But it's the losses that can just wipe you out if you're not prepared properly. So a small price movement can have a massive impact. And if you haven't sat down and done the calculations to really understand what those movements could mean to your account or your bottom line, then you've got to do it. So you could get a margin call and then have to add funds or close positions. So it's really important, and it's important to set yourself a buffer, so that therefore that can't happen. You've always got some funds there. The amount of times I've heard people say that, "Oh, I

• 22:44Speaker 01

  haven't got any cash left." If you're doing that, when you're trading short, you need to always have plan A and B, just in case. So it's about having the right risk management, the right strategy to exit, but also to have the right money management or capital management and overall risk management in your account. So you could have too much leverage, I guess that's the point here, and it's really understanding what the right level is for you. Can you set the level for yourself? Getting the stop loss wrong,

• 23:26Speaker 01

  placement of your stop loss is key. Even more critical in a short position, I was working through a scenario with someone about this is trading long, and we were looking at whether to set just a percentage stop or whether to set it underneath a particular level. And it's weighing up all of those options that's really important. It's not just sort of one size fits all. In the scenario you're looking at, this is where you've got to pay attention, because if you miss something like that, it really could cost you. If you make it too tight, then you're going to get stopped out more easily. If you make it too broad, then you're risking way more than the trade's even worth taking, and you wouldn't

• 24:11Speaker 01

  want to be in that position that goes the wrong way. So you can, you can look at it, as I said, from a percentage point of view, but you can also use the chart to help you identify it if you know the strategies for setting these stops well. And it's, it's about making sure that you've considered all angles here. Borrowing costs and financing costs, that can also increase your risk, but is not the focus here. I mean, when interest rates rise, of course, there's something to consider, but when you're going short, you've got to just be prepared for the impact of that when you're going long

• 24:52Speaker 01

  versus going short, because there is a difference there. Whether the stock goes X dividend is something you need to know. That adds to your risk, and is different from going long to going short. So normally, you would receive a dividend if you're going long. Going short, you've got to pay the dividend. So hence, really important to know when that period is, where that X dividend date is. Now, when buyers are in the market, they might continue to pick up stock when it starts falling, and that can provide some support for stocks initially when they're falling from their highs. And eventually,

• 25:33Speaker 01

  the selling pressure might increase as the stock's falling, so that that could increase the speed at which you can generate returns. But then at some point, that's going to flip, and the buying pressure comes back in, or the closing of those shorts will come in. You might want to have a look at the, you know, what, how many, what level of shorts is set for a particular stock, and Market Index can show you that at any particular time. It will show you the short interest on the stocks that you're looking at trading. The other side to it too is getting, is the psychology side for sure, because your psychology needs to be well-trained when markets, when you're trading faster markets,

• 26:18Speaker 01

  or when you're trading short because of the direction, the way that stocks move and markets move. You don't want to be caught in FOMO. You want to have already tested yourself psychologically in the market going long, to know how you respond, what's going to keep you in check, what are your processes to do that? How do you know that when the stock's falling and you're in profit, that your, your psychology's not going to muck it up for you, because you're not disciplined? You know, do you have your trading plan documented clearly? Is it something that you have to tick off before you can close out your position? Do you ask yourself questions? How do you, how do you go through that whole process

• 27:02Speaker 01

  to make sure that you, you enact your stop loss when it's triggered? Why not just let it go a little bit more and see if it turns? Well, when it, on a short trade, you don't have that liberty to do that. It all happens much faster. So sometimes, the risk can be just not acting quickly enough. Now, these reversals can happen pretty quickly. Second guessing can be expensive. That's why with the mentoring that we offer, we help people to work out their plan, to get the clarity around what they're going to do, and their

• 27:42Speaker 01

  process to remove that second guessing from the whole thing, so that they're self-checking and planning decisions before entering the trade, but including what to do. How could the market, how might the market unfold? How might the stocks unfold? I mean, that you're, that you're looking to short, or go long if that's where that you're going. So this risk management side of it is critical in every step, in every trade. You know, it should be applied across your process, not just at the point when you do your analysis at the start, and you think, yep, make good money out of that. What am I risking to get

• 28:26Speaker 01

  that? And is it worth it? Or should I be waiting for the next trade? Should I be waiting for a different stock? Don't have to take every trade that presents, because if you look back in history, it'll surely tell you how many times those shorts can fail. And when the market turns against short sellers, we can see just a complete disaster, right? So short sellers must buy back borrowed shares to close their position. They got a short squeeze, squeezed out of it, and that can happen often. We've seen some pretty

• 29:05Speaker 01

  dramatic cases over, over time of where even big market players have been tricked. So it's not just you as an individual out there. That's what you've got to realise. And this buying then adds to market interest, because when the stock bounces, and then the buying starts coming back in, all of a sudden, people are starting to talk up the opportunity. So it could get even worse before it gets better. Well, it may not even go down again. That's the thing you've got to realise. If you can't analyse a stock to know where the turns are likely to be, then how do you know where the bottom is? Where the, what the probability is of the stock turning where you're expecting it to?

• 29:53Speaker 01

  So the higher, the short interest doesn't necessarily guarantee that there'll be a short squeeze, but it could create quite a volatile move out of it. So you wouldn't be sitting there thinking, oh, there's, there's a lot of stock being shorted here, therefore I'm going to prepare to pick up the stock to go in the opposite direction. That's not a good decision because you want confirmation after the bottom that there is really a move to the upside, not just a false rally. Now, Phil and Pedro put together a really great

• 30:34Speaker 01

  article, three ASX stocks where the shorts could get squeezed. I think that's really a good one to follow if you haven't had a chance to look at that one. And it examined Drone Shield, Domino's Pizza and Cilex Systems, quite volatile stocks, but worth learning from. You know, they talked about why the companies attracted short selling attention, how crowded the short positions can affect, how the short positions can affect the price, why unexpected positive news or changes in direction can be dangerous for short sellers, all of the really important stuff, and, and how important it is for the chart to support

• 31:19Speaker 01

  the decision for the trade, not looking at short interest figures to make those decisions. You could look at those, they could potentially support your decision, but not be the reason for the decision. Okay. So I thought we'd have a bit of a look at a few examples and explore what the bigger picture is telling us about the direction of some of these stocks, whether the stock's trending down, has it already fallen substantially, whether it's close to support, could short covering drive a rapid rally, and what would you need to be careful of? So I'm looking at Zip. Zipco has been a really popular stock at times for

• 32:01Speaker 01

  going long, but more recently, it's been a short's favourite, really a short seller's favourite. So when we look at what's been happening to this stock, it's just quite incredible. Now, if you were in a short recently, you probably, you could get stopped out, and this is the risk right now. And why is that? Well, Zip has just come down to what is an extremely important level of support for it. And it goes back quite a long way. There's a possibility it could keep falling, right, just based on the way that it's unfolded

• 32:43Speaker 01

  because it's been so bearish. But the point is that a large part of the fall, or maybe most of it, has already happened. And just looking at the chart, there's a bit of a, well, not a bit of a, it's quite a strong level at around 140. And this is where it's actually turned up from recently. Now, the, the upside may be short-lived possibility, but it's how it sets up from here that will determine whether we're more likely to see

• 33:22Speaker 01

  this stock track lower. So it's a really critical time. Now, is that the time that you want to be trading this stock, where it could go one way or the other? And, and I don't, I don't think that's the best angle. The ideal scenario is to actually be able to confirm when a stock's already had a decent pullback, it comes up, we see this bounce like I was talking about before, and then it continues down. So you're going to see an exact example of this. If you go back to the chart in October 2025 on Zipco, I think in this case, the weekly chart's probably the best place to have a look. And

• 34:07Speaker 01

  what we see from this chart is a couple of things. One, we already had that strong level of support below, which is, at the time, the really strong level was somewhere between a dollar and around a dollar sixty. What happened? The stock ended up falling all the way to a dollar forty in March 2026. But what it actually showed us was a number of things. It showed us that the trend was changing just after that top in 2025. It

• 34:50Speaker 01

  also demonstrated that an important level of support was broken when it started to pull back. That gave me another tick. And then, when it attempted to recover, we saw a significant reversal in price in January 2026, when it reversed to the downside. So if you can imagine a really strong rise, a pullback, really strong pullback, almost straight down over a number of weeks, and then a bit of a sideways move, a push to the upside, obviously when some of the positions were being unwound, buyers thought there

• 35:33Speaker 01

  was an opportunity again, but then it sold down again. And the run, the run that happened from the point where you could confirm that this stock was going south, you would have had a couple of options for the entry. Let's take the more aggressive one. The stock initially fell 26% over three weeks. Now, in a leveraged position, you just work out the numbers, depending on how you're set up. That's significant. But that didn't end there. It, it reversed.

• 36:16Speaker 01

  And whether you managed to stay in that position was totally determined on your stop. And there are a number of options as to what you can set your stop loss. But looking at the way that this stock had unfolded in the past, setting a really tight stop was not the way to go. So by holding, it was possible to make 54%. So double what that initial move was. Now, I'm talking about the move from January 2026. So the outside bar, really strong close to the bottom of the bar, and then the stock looked like it was, it might

• 36:59Speaker 01

  have been finding support, but it kept going. Now, where, where you entered exactly is really determined by the strategy that you choose. But what can happen sometimes is, as it did in the past, the stock could actually have gone really fast below that sideways move, making it really hard to get in. So this is where it's important to really set your position, decide on what you're willing to risk, based on two things. One, your, your risk tolerance, the opportunity, so you're not going to risk anywhere near what the

• 37:36Speaker 01

  opportunity is. You want your risk to reward to be the right level. And then execute the trade and decide on the criteria to get out and be doing that upfront. And it was really important to do that because that support level at around 140 was so strong, that this is where the stock bounced up from, to make a new high in July 2026, or a short-term peak, lower than the high in October 2025, if you can imagine that. And then it continued

• 38:17Speaker 01

  to fall, and it came back to the low in March, in 2026 that I mentioned earlier, which was our 54% fall to that low in March 2026 at around 140, 140. But it actually went through that level in October 2026. Here's the interesting thing. It actually didn't close below that 140, it closed just above, and then started to go up following that. Now, at this point, we don't know whether that level's going to hold. But in trying to take the trade,

• 39:00Speaker 01

  well, after the short trade from July 2026, it was a completely different scenario. It would still have been possible to get a nice short trade in there in around September 2026. I can just tell you how far it fell. It went another 50-odd percent down to that low, but you would have had to have been quick, thinking that there was a possibility that it could reverse here. So I'm not going to tell you how you would exit that. That's something that you need to really examine and understand. This is just about thinking

• 39:42Speaker 01

  there are lots of opportunities on lots of different stocks at any time to short, but it's being in the right ones that's the key thing here. Now, Lotus Resources is a good one. If you could get a chance to look at that chart, have a look at the monthly chart first, and you'll see that in dramatic fashion, it would fall really swiftly to the downside after the top. There are a number of rules that you can use to actually make a decision to enter, but the way that we managed it on Zip might not be the same way that we managed it on this one. And looking at how the stock unfolded, some of the best trades happened

• 40:26Speaker 01

  after, long after that big fall from the all-time high, it already happened. So when, when someone is actually thinking, oh, this is an opportunity to go long, following the low in April 2025, the stock starts moving up, the real opportunity happens not long after that. And there's a really nice little setup there that unfolds. So, and just to give you an idea of what happened, this one fell nearly 90, or around 90%, 80, 80-odd. And you're probably unlikely to get stopped out of this one. Well, it depends on how tight

• 41:09Speaker 01

  you had your stop, as I said, but that would have been an amazing trade to be on. So this is where it's worth really picking the eyes out of it, looking for the setups on the stocks, not just thinking, I'm trading short and long, therefore, every opportunity I get, I'm just going to trade short, which isn't the way to think about it. There were a few really good ones on this stock as well. But look, I hope that helps you understand a bit more about short selling, and I encourage you to do your research, but most of all, make sure that you, you're educated to go long, you understand the risks, know how

• 41:54Speaker 01

  to look for the setups, and ideally understand price pattern and time. I'm Janine Cox, Senior Analyst at Wealth Within. Bye for now.