Hi, In my country short selling is prohibited so I can only have a momentum long only. When the market is so bearish that long position is impossible, what alternatives are there other than keeping cash? Any advice or suggestions on what trading strategies work well in such a limited environment? Thanks
Have you considered moving away from Indonesia, is that an option for you? Are you still allowed to buy Put Options, to bet down on the market? Or is that short selling ban only applied to Stock? Whatever way you decide to go from here, May you become a Millionaire in the Market -- it's all very possible, riches for the taking,
Hi, thank you @hilmy83 @deaddog . But no or not yet available etf and options. Only stocks and warrants, and they can only be traded long.
No, I want to trade from this small village. No options. Stocks and warrants traded here are prohibited from short selling. Amen. Thanks for that. And wish the best to you too.
Correlated nearby market if allowed/or exist. Volatility products, again correlated nearby. Will require lots of capital and could very well not be possible. One possibility is always dynamic hedging - replication of the negative delta option by reducing size. May not be perfect, but some hedge can be better than no hedge. The huge cost is in time to monitor. A small account it may simply not be feasible.
@smallAxe, I am not too far from you. I trade mainly US stock using IBKR. This is just my opinion. The stock market in this region is not easy for trader.