Why are bearish markets bad if there are future contracts?

toli said:
Why do I get the vibes from every resource that you can only make money in bullish market and bearish is bad?
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That's something only you can answer. We don't know your "vibes".
Going short is often advised against when the customer/reader is not familiar with financial markets (financially illiterate, newbie). Once you know what you're doing you can use both sides: markets going up, and markets going down.
 
It’s much easier to make money in an inflating market where new money is coming in.

It’s a lot harder to make money when you are fighting to divvy up a set pot.


toli said:
I was recently asking around this forum about profitability of the crypto trading. I got answers that 2022 was a bad year because the markets were down. But now I'm experimenting with Binances demo account, and learning about the futures contracts. What I learnt is that they allow you to trade with leverage and take short positions even if you don't have underlying asset.

So, even in the bearish market, it seems you can "sell" the asset you don't have and then "buy" it back for profit. So you can make money even in the bearish market.

Where's the catch? Why do I get the vibes from every resource that you can only make money in bullish market and bearish is bad?
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The traders in this forum know how to trade up down and sideways to make money.

for average people, shorting is more dangerous because if you sell something short at $20 and it rockets to $100 you’re down $80/contract on margin and your portfolio is liquidated. If you buy the stock at $20, the most you can lose is $20/contract, no margin call.
 
toli said:
Why is shorting more dangerous?
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Let's say you shorted BTC at 5K... See?

If you actually trade it (in and out) it is not more dangerous, but if you have a bias and doesn't want to give it up against the trend, you can lose more than 100%.
 
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