I'm quite surprised that there is very little discussion here about going short on stocks (and other markets). When people talk here about the profits they made, invariably the way they made it is by the traditional buy and sell approach. Is it not better to trade with the downward trend rather than against it?
If we are talking about the method of trading where one makes a profit from riding (a medium to long term) trend, then it seems almost impossible to profit if we rely on the traditional buy and sell approach of ASX listed stocks. I've looked at a lot of the charts of Australian stocks recently, and I've come to the conclusion that right now, hardly any stocks are trending up, and the ones that are could very well turn right around on a few more bad headlines. So the probability of winning trades seems pretty low if we just buy and sell Aussie stocks using a (longer-term) trend following system.
On the flipside, there are something like 150 Aussie stocks and about 10000 US stocks that can be short sold. In addition, a hell of a lot of these are trending down. It seems insane to me that I don't read anywhere about people taking advantage of this and profiting from it. Is there a reason for this? Am i missing something here? Is there more risk than I think?