I don't like this.

JSOP said:
quantifiable how?
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Price of asset can't go lower than zero if it gaps down to zero. A short asset could balloon overnight on acquisitions/major breakthrough/etc.... I suppose you could place deep limit orders that trade outside regular hours to avoid it....
 
Here4money said:
Price of asset can't go lower than zero if it gaps down to zero. A short asset could balloon overnight on acquisitions/major breakthrough/etc.... I suppose you could place deep limit orders that trade outside regular hours to avoid it....
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But the loss mechanism is still the same. If the price goes against you, you lose, regardless whether you were long or short. A fall from a $1K price to 0 is still devastating just the same. If you are concerned about the potentially unlimited losses with shorting, just short less.
 
H&S being built by the looks of it. Since it's monthly we're looking at a major crash earliest late next year.
 
JSOP said:
Shorting is the same as longing, just in the opposite direction. If you are good at longing, you should also be good at shorting. There is no such thing as "not good at shorting". And you don't need options to short unless shorting of the instrument that you want to short is forbidden by some brokers (which is absolutely ridiculous and detrimental to an efficient market). People are all scared of being "short-squeezed" in that somehow it's more dangerous but being "long-squeezed" is just as dangerous. If you were holding long, when the price gaps down all of sudden, you are screwed just the same.
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You haven't heard of this fantastic phrase "unable to locate"?
Going short isn't exactly like going long. The dynamics are very very different but from a distance it all looks the same.
 
Theoretically the sky's the limit against a short. Theoretically.

Reality though is that gaps up/down happen about equally often, as well as similar percentage moves.
 
No matter how it looks and how it may sound, you have to remember that all is not lost and this is not the end. These are the natural changes that occur everywhere, so do not despair, but you need to hope for the best)
 
Grentez said:
No matter how it looks and how it may sound, you have to remember that all is not lost and this is not the end. These are the natural changes that occur everywhere, so do not despair, but you need to hope for the best)
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Hope <> trading. Only fear and greed.
 
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