Why are bearish markets bad if there are future contracts?

toli said:
Why is shorting more dangerous?
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With stocks it's Risk/ Reward!
When you are long all you can lose is your initial investment. When you are short the loss can be much greater than your initial investment.
When short you borrow stock to sell. The borrower can ask for their stock back at the most inopportune time.
 
toli said:
Who's crazy enough not to use stops? I mean that's the first thing you learn as a newbie.
Why would professional firms not use something as straightforward to manage their risk?

The most you can lose is what you put on your stop-loss, no?
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Exactly;
except with swing singles stocks short/ easy to gap up waaaaaaaaaaaaaaaay past your stop\or get bought out for more than you thought .
ITS not so much bear = bad;
its so few funds specialize on bear side\
+ so many do+ profit on long side which is a hint but not a prediction.
 
toli said:
Who's crazy enough not to use stops? I mean that's the first thing you learn as a newbie. Why would professional firms not use something as straightforward to manage their risk?



The most you can lose is what you put on your stop-loss, no?
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Are you wanting to trade crypto?
Why?
 
For long term trading shorting is just harder, intra and shorter term it makes less difference.

If you think percentages as most people do, then some stock or bitcoin futures goes from 20 to 40, you make 100%, but 40 to 20 is just a 50% profit.
 
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Businessman said:
For long term trading shorting is just harder, intra and shorter term it makes less difference.

If you think percentages as most people do, then some stock or bitcoin futures goes from 20 to 40, you make 100%, but 40 to 20 is just a 50% profit.
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Meaningless. Same $20 gain either way, same ROE used.
 
easymon1 said:
Are you wanting to trade crypto?
Why?
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Because it’s volatile, and if I can learn to time the market right, there’s a lot of money to be made. Not the same with stocks/currency which can take forever to move and are better if you want to build your retirement fund or something.
 
Businessman said:
For long term trading shorting is just harder, intra and shorter term it makes less difference.

If you think percentages as most people do, then some stock .... goes from 20 to 40, you make 100%, but 40 to 20 is just a 50% profit.
More...
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Good points;
even though there is a much greater risk with bit cons.
And leverage makes it much more risky/ even a good trend like RE can be foreclosed ;
100% of foreclosures are caused by leverage or other stupidity...... like get rich quick cons
 
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