Trading a bear market

For day trading, it doesn’t matter long or short. I use both but shorting is more difficult since most downtrends are quite jagged.
 
tomkat22 said:
You guys are really limiting your profit by not doing an occasionally short. Obviously the trick is picking the right stock at the right time. Witness the fact long-only funds are taking it up the poop chute at the moment.
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I just go to cash. Long only funds lose in a bear market because they have to be invested. No one will buy a stock fund that doesn't have any stocks.
 
Jzwu2017 said:
For day trading, it doesn’t matter long or short. I use both but shorting is more difficult since most downtrends are quite jagged.
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Jagged and heighted volatility is whatever position you are currently in. That is the way the mind sees it.
 
deaddog said:
Really; I find that risk control is much tougher when shorting.
All I can lose buying a stock is my initial investment. My losses short are unlimited.

I learned a valuable lesson when a stock I had shorted got bought out at a premium to the price it was trading at that was much higher than my stop.
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Borrowing stocks to short is Russian roulette. You know the risk profile for shorting stocks doing so, is unlimited to the upside. It takes just one whack to wipe you out. If you are going to short any stock, buy a put option. Your risk is limited to the cost of the put option and that is on the worst case scenario already. And stop losses will not protect you if your stock gaps up suddenly.
 
For people who day trade, the day trading gurus teach you how to short stocks which is fine and dandy. How many of the day trading gurus tell their students that shorting stocks by borrowing shares, the risk is unlimited to the upside. Most of them probably, do not tell their students. If they did, the allure of day trading would fade because their gains would be much, much less and limited to the upside. That is not counting, staying 100% in cash, after they exit their long positions. Most of the stocks day traders trade are very volatile, low float stocks that jump up and down. How many of these students, without a clue, will end up blowing their account?
 
Never trade other people's opinion.
Trade what works for...YOU

Dude, are you crazy, you should never short.

$2346 in profit (market continues down)

Are you aware of the upside in shorting?

$4819 in profit (market continues down)

In shorting I'm afraid of losing money.

$5211 in profit (market continues down)

I don't care, I'll stay in cash till the rapture.

I'd rather be a Dragon.

dragon.jpg
 
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