David Einhorn lost a fortune for selling short Tesla from $15B to $1.5B

Discussion in 'Wall St. News' started by HeSaidSheSaid, Nov 16, 2021.

  1. https://www.forbes.com/billionaires/


    I wouldn't sell short the leading horses in the economy (the ones that have the game changer technology or idea).
    however, there's time one could sell these types of companies short, but one would need to be patient, nimble, and keep it small.
     
    #31     Nov 18, 2021
  2. SunTrader

    SunTrader

    Long only <airquotes> traders need to get over their aversion to short sellers unless they never sell (hold in perpetuity) the stocks they buy. Because selling means they lack confidence in price moving higher at some point, which is exactly how shorts feel. But profit from it, if right. WTF is wrong with that. Go long, profit if it moves higher, lose if it doesn't. Go short, profit if it goes down, lose if it doesn't.
     
    #32     Nov 18, 2021
  3. ElCubano

    ElCubano

    Or more like go long, profit if it goes higher, don't sell if it move lower just hold lol.
     
    #33     Nov 18, 2021
  4. zdreg

    zdreg

    Will Rogers Quotes
    Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it.
    :D
     
    #34     Nov 18, 2021
  5. RedSun

    RedSun

    Several things traders need to remember.

    1. do not fight the market, period.
    2. know your holding horizon. Nowadays, most traders trade for short-term, same day or swing trade for several days.
    3. know where your P/L stop loss is. Super important. If you set 15% stop loss, place a hard stop. Do not gamble. You do not want to run to 50% loss and liquidate your position.
    4. do not "marry" to your position based on your over-confidence. We all make mistakes. Admit mistakes, take humble loss and move on.
    5. never put any position that can ruin the trader or fund manager. Fatal mistake beyond the point of no return.
     
    #35     Nov 18, 2021
    dennis86 likes this.
  6. SunTrader

    SunTrader

    And what happens if it goes lower ........... and lower, lower, low?
     
    #36     Nov 18, 2021
  7. comagnum

    comagnum

    The market is in flow blown mania mode as much so if not more then 1929 & 1999, this is when valuations don't matter now - but they will at some point.


    Got to be quick & nimble when standing in front of a freight train - haven't these clown billion $ hedge funds ever heard of risk mgmt?
     
    Last edited: Nov 18, 2021
    #37     Nov 18, 2021
  8. ElCubano

    ElCubano

    Depending what you are trading and your age I like my odds better on the long side. The charts just don't lie and over time it's up. It is what it is.
     
    #38     Nov 18, 2021
  9. Pekelo

    Pekelo

    Thanks for that explanation. I knew something was fishy with the story...
     
    #39     Nov 18, 2021
  10. SunTrader

    SunTrader

    Over time it's up ... for some, not all. 2021 is no different than any other year. There are always losers even in roaring bull markets.

    Activision is just one example currently at the same price it was 4 years ago!!!!!!!!

    List goes on and on.
     
    #40     Nov 18, 2021