If you've spent enough time on social media or watching any kind of financial show, I'm sure you've come across some kind of variation of this: shorting a stock is bad! While I can understand why people may think that shorting stocks are bad for companies (and the economy as a whole), it simply is not accurate. In order to better explain why shorting a stock is not harmful, we need to first do a bit of the basics. By looking at and truly understanding the basics of short selling, it quickly becomes apparent on why shorting does not hurt companies, but actually does the opposite. In certain circumstances, companies that have their stock shorted to high levels will greatly benefit from this! If you are a beginner day trader and wondering if you should be shorting stocks within your day trading strategies, let me put your mind at ease that nothing you are doing is hurting the company. I want you to have success as a day trader and part of this success is having peace of mind that you are by no means damaging a company. Let's get to it!
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