David Einhorn lost a fortune for selling short Tesla from $15B to $1.5B

[HeSaidSheSaid]

https://www.forbes.com/billionaires/


I wouldn't sell short the leading horses in the economy (the ones that have the game changer technology or idea).
however, there's time one could sell these types of companies short, but one would need to be patient, nimble, and keep it small.

 

[SunTrader]

Long only <airquotes> traders need to get over their aversion to short sellers unless they never sell (hold in perpetuity) the stocks they buy. Because selling means they lack confidence in price moving higher at some point, which is exactly how shorts feel. But profit from it, if right. WTF is wrong with that. Go long, profit if it moves higher, lose if it doesn't. Go short, profit if it goes down, lose if it doesn't.

 

[ElCubano]

Long only <airquotes> traders need to get over their aversion to short sellers unless they never sell (hold in perpetuity) the stocks they buy. Because selling means they lack confidence in price moving higher at some point, which is exactly how shorts feel. But profit from it, if right. WTF is wrong with that. Go long, profit if it moves higher, lose if it doesn't. Go short, profit if it goes down, lose if it doesn't.

Or more like go long, profit if it goes higher, don't sell if it move lower just hold lol.

 

[zdreg]

Will Rogers Quotes
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.

 

[RedSun]

Several things traders need to remember.

1. do not fight the market, period.
2. know your holding horizon. Nowadays, most traders trade for short-term, same day or swing trade for several days.
3. know where your P/L stop loss is. Super important. If you set 15% stop loss, place a hard stop. Do not gamble. You do not want to run to 50% loss and liquidate your position.
4. do not "marry" to your position based on your over-confidence. We all make mistakes. Admit mistakes, take humble loss and move on.
5. never put any position that can ruin the trader or fund manager. Fatal mistake beyond the point of no return.

 

[SunTrader]

Or more like go long, profit if it goes higher, don't sell if it move lower just hold lol.

And what happens if it goes lower ........... and lower, lower, low?

 

[comagnum]

The market is in flow blown mania mode as much so if not more then 1929 & 1999, this is when valuations don't matter now - but they will at some point.


Got to be quick & nimble when standing in front of a freight train - haven't these clown billion $ hedge funds ever heard of risk mgmt?

 

[ElCubano]

And what happens if it goes lower ........... and lower, lower, low?

Depending what you are trading and your age I like my odds better on the long side. The charts just don't lie and over time it's up. It is what it is.

 

[Pekelo]

They make it sound like Einhorn "lost" $13.5 Bn. In fact, his AUM went from $15B to $1.5B as clients took their business elsewhere, not because the value of his investments was cut by $13.5Bn

Thanks for that explanation. I knew something was fishy with the story...

 

[SunTrader]

Depending what you are trading and your age I like my odds better on the long side. The charts just don't lie and over time it's up. It is what it is.

Over time it's up ... for some, not all. 2021 is no different than any other year. There are always losers even in roaring bull markets.

Activision is just one example currently at the same price it was 4 years ago!!!!!!!!

List goes on and on.