This course is approved by the FPI for 1 CPD. FPI24048738
 
This course provides an in-depth exploration of short selling, a sophisticated trading strategy that allows traders to profit from declines in asset prices. Designed for experienced traders and financial professionals, the curriculum covers the mechanics, risks, benefits, and strategies of short selling, with a focus on mastering bearish trades in dynamic financial markets. Through theoretical knowledge and practical examples, the course aims to enhance students' understanding of market analysis, risk management, and the psychological aspects of trading.
 
Course Outline:
Introduction to Short Selling
Definition and importance in financial markets
Mechanics of short selling and key risks
Market Analysis for Short Selling
Identifying overvalued equities
Analyzing market trends using technical analysis
Strategies for Short Selling
Contrarian approach
Event-driven strategies
Pair trading strategies
Risk Management in Short Selling
Setting stop-loss orders
Diversification and managing margin calls
Regulatory and Ethical Considerations
Regulatory framework in South Africa
Restrictions and reporting requirements for short sellers
Case Studies and Practical Examples
Analysis of successful and failed short selling attempts
Impact of short selling on market dynamics
Psychological Aspects of Short Selling
Overcoming emotional biases
Mental discipline and psychological resilience
Technology in Short Selling
Role of algorithmic trading and big data analytics
Automation in short selling strategies
Future Trends in Short Selling
Impact of technological advancements
Forecasting the future of bearish trades
Practical Example: Detailed walkthrough of a short selling transaction
Steps, financial calculations, and lessons learned
Conclusion
Recap of key points, implications of mastering short selling, and final recommendations for aspiring short sellers