Shorting easier in general than going long?

Discussion in 'Strategy Building' started by mdl060374, Nov 4, 2005.

  1. First, let me say that everyone has to do what works for them in the market.

    I've seen some bears over the years do extremely well in bear-markets, and then make a little whilst the markets are bullish. Vice versa, I've also seen bulls make a killing whilst markets are roaring and then squander winnings when the bears are in control.

    One thing to remember is that a stock can only drop a hundred percent, but upwards it's potential is far greater (think GOOG or AAPL). Thus, I prefer to be long instead of short when we're talking about long-term investments.

    For short-term trading, say intraday, this isn't important at all unless you're talking about stories repricing a stock in the span of a day.
     
    #11     Nov 4, 2005
  2. Yes, intraday only... I am also inclinesd to think that after a runup, the psychological power of feeling pain, is more powerful, than the thrill of making on a long...

    hence when a stock starts to drop on heavy volume, more people pile in.
     
    #12     Nov 4, 2005