Getting Investment Leverage in the Markets

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This Element is an excerpt from The ETF Trend Following Playbook: Profiting from Trends in Bull or Bear Markets with Exchange Traded Funds (ISBN: 9780137029013) by Tom Lydon. Available in print and digital formats.

Why go "short"--and how to use leveraged ETFs to do it more effectively.

During the last several bear markets, you might have been well served by reducing your exposure to equities. A number of investors--perhaps even you--decided to "short" the market instead of exiting entirely. By shorting stocks, investors can potentially make money when the stock loses value. Short selling can help you accomplish several goals.