Because the markets have naturally trended upward for hundreds of years.
Why do people always look to 'buy', not to 'sell'???!!
- Thread starter spanish89
- Start date
Because the markets have naturally trended upward for hundreds of years.
CNBC junkies
Quote from dtrader98:
Many reasons:
Historical reversion to mean after large deviations.
Lognormal price distributions.
Long term postive drift.
From a pragmatic point of view, shorts have experience in getting ripped on squeezes. Like putting fingers in a flame, you can develop a pavlovian based fear response to shorting.
There is a more evident reason :
In our every day life, making profit is associated with selling something higher than what we bought it for, we are conditioned that way
1) the average investor doesn't understand short - selling, so they don't do it.
2) the market trends up over the long term, because...
3) our monetary system is inflationary and assets keep pace with inflation, over time.
2) the market trends up over the long term, because...
3) our monetary system is inflationary and assets keep pace with inflation, over time.
NOT because the price have been bullish all these decades... but because of natural Human tendency to be good in nature. We are generally optimistic beings. By doing what is best for everyone's future, we evolve socially.
Basic mentality dictates that people want to trade on the upside. Trading on the downside feels unnatural to them. I only trade on the down side. I am not scared to leave a position overnight because if something bad happens it only benefits me.
The only fundamental thing I am scared of is when a company gets bought. Then all the charts in the world are worthless and I lose all money.
Many people think it's unpatriotic or morally corrupt to short.