What is Shorting

If you don’t know, shorting the market means making money when prices fall. While most people focus only on investing, shorting is a skill that can truly change your life if you master it. It’s not just about making money—it’s about being prepared for that one big moment when the market crashes and hands you the opportunity of a lifetime.

Now, shorting isn’t easy. It requires technical analysis, psychology, and money management. The reason most traders don’t get into shorting is not just a lack of time, but also because shorting opportunities aren’t as widely available in the Indian market as they are in the U.S. But that doesn’t mean it’s impossible—futures, options, and a few other instruments can still be used effectively.

Bear Markets: Your Training Ground

A bear market is what we are witnessing right now—where the market trends downward over time. It may not be as sudden as a Black Swan event, but it’s the perfect opportunity to sharpen your shorting skills. Think about it—most traders learn nothing in bull markets because everything goes up. It’s bear markets that force you to adapt, manage risk, and truly understand market movements.

The Black Swan That Can Change Your Life

Black Swan events, if you know, happen once in a while—when markets crash unexpectedly and in a short span of time. The COVID-19 crash was one such event. Many traders wait years for such moments, because if you are ready, you can multiply your capital many times over in just a few months.

The mistake most traders make? They see the crash, but they don’t know how to capitalize on it. They weren’t prepared. And by the time they figure things out, the opportunity is gone. This is why you need to use the current bear market as a teacher—to develop and refine your shorting skills now, so when the next Black Swan arrives, you’re not just watching—you’re making serious money.

Steps to Master Shorting

1. Start Small – Don’t go all in. Learn the game first.
2. Test Multiple Strategies – Trend-following, momentum-based shorting, options strategies—see what clicks.
3. Build Systematic Rules – No emotions. Define when to enter, when to exit, and how much to risk.
4. Strengthen Your Psychology – Shorting is tough. The market will test you. Stay disciplined.
5. Scale Gradually – Once you start getting it right, increase your positions slowly and responsibly.

The Big Picture

Now, put things in perspective—a 20-30% drawdown right now feels like nothing if you’re able to 2x-3x your capitalwhen the next Black Swan hits. If you imagine that crash happening 5 years from now, that’s the time you have on your hands to practice, refine, and master this skill.

Start now. Keep that Black Swan as the eye of the fish—focus on it. The market will give you a once-in-a-lifetime opportunity. The only question is—will you be ready when it does?