Many shorts had their biggest gains in history in Feb- April . I’m sure by now most have had one of their worst yrs ever . Most shorts tend to take profit quickly due to fear of big rallies and stubbornly hold shorts .
I am not sure where you got your statistics on the biggest gains in history for short sellers do you have anything to back this up? I traded through the tech bubble pop and companies were going from the hundreds 200s and even higher down to single digits and into the 30s and 20s rapidly. i am pretty sure just as my own guess that the shorts made alot more money with those moves since oh yeah a lot of those tech companies went BUST you know to ZERO. 2020 also is not over yet is it? disaster turn into profit rapidly for short sellers if they are doing it right.
This is probably the more likely scenario. 2020 started off as incredible for short-sellers and they ended with double Joy. Many shorts had their biggest gains in history in Feb- April 2020. Most shorts know when the trend was reversing. And they managed to take an extremely huge profit from the big rallies since April 2020 as they had long liquidated their short positions. I’m sure by now most have the best of the best years ever since they have profited massively from the downturn and upturn. Over the past few decades, 2020 is the BEST year for trading as the index futures price range is at a record high.
Here is how my shorts-only have done. Wouldn't call +39% YTD a disaster. There are many ways to skin a cat. Val
If most shorts tend to take profits quickly as you stated - then how exactly did 2020 become "one of their worst years ever"? Do you work for BuzzFeed by chance?
My best time period this year was shorting during COVID March. It was hesitating buying the bottom that I regret.
That is not an accurate statement. Maybe some shorters made losses, but that’s always the case. Depending on what you’re shorting and when you chose to close the trade will decide the fate of your trades. Are you saying this because some markets are rising now? Short selling is still a good strategy this year.
The mkt has risen 85% of the time from June till now . The Naz is up 86% since March lows and the Es 70% . Of course most shorts made money as they always do . lol . Nobody ever loses .