question about short selling

Discussion in 'Investing' started by grizly, Apr 1, 2020.

  1. grizly

    grizly New Member

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    Hi :)

    I'm new to the stock market and I have a question about short selling in financial crises such as this one.

    So, in such a time like now or 2008, after the first few days when the market drops big time and it's obvious we're heading into a financial crisis, you don't have to be a genius in order to understand that at least for the next month, most stocks are going to drop (especially in specific sectors, like travel in this crisis for example).
    Sure there is volatility and some days stocks are gonna go up a lot, but over the course of a month, surely there are gonna be a few points in time when one would be able to cover and profit.

    So I guess what I'm asking is, why ,a few days in such crises, doesn't everybody just short sell? I mean what am I missing? Is short selling even allowed in such times? (as far as I know it's still allowed in the US now, right?), and if so, can i get a time window of a few weeks/months to cover? or will it be just a few days?

    Also any recommended sources of information about short selling would be welcomed (especially if you know a good book about the subject).

    Thanks!
     

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