Suppose there is an investment, such as a stock, which I currently own no units of. I predict this investment will soon drop in value. I have no reason to predict that the investment will bounce back shortly after it drops in value.
If I owned some units, I would want to sell them before the drop in value. If I expected the investment to suddenly increase in value, I would want to buy as many units as possible before that happens, and probably sell them right after. But none of these is the case.
Assuming my prediction is accurate, that is, the investment's value will drop significantly in the near future, is there a way I can profit from acting on this prediction?