the reason why a lot of traders feel the need to short

I was hypnotized by the boring ES price action at times today and a thought came across my mind about why traders (including me) feel the need to short the markets.

It's because we had missed out on shorting when it was the proper action to take, which is in late 2007 and all through 2008 and early 2009.

I, for one, started my trading career only in April of this year, trading stocks at a prop firm. Got fired (maybe even intentionally trying to get myself fired) and went to day trading options and then futures shortly thereafter.

I believe it is a subconscious urge of mine to "get back" at the markets, to get revenge on them, because I had missed the great profits to be had shorting the markets when they needed to be (even though I was not even a trader then). So, right now, at every opportunity, my subconscious urges me to look for situations where I can short the market, alas, too often to the detriment of my own account.

I suggest to everybody else here to really look deep into themselves and see the real reason why they are shorting.

After all, we are all here to make a PROFIT, and NOT to be RIGHT (well, at least for the real traders)!

Our rational mind recognizes that, but our subconscious, which is much more powerful as it controls us without even us knowing why (e.g. "I just feel that way"), urges us to "get back" on the action that we missed in not being there or not shorting the markets at one of the best shorting opportunities in history. That is why a lot of us get the compulsive urge to short the markets, even though we know it's all govt manipulated and it will fall when they want it to.

Peace.

 

I said something similar here:

http://www.elitetrader.com/vb/showthread.php?s=&postid=2560363#post2560363

Going against the trend is how some people subconsciously express their desire to "stick it" to authority. It's an expensive urge.

 

yea, i agree.

Also, some are taught and believe "fear is greater than greed." so maybe winners run longer...

and with all the "smart" fund managers really only buying, you want to go 'against the grain' and prove they are wrong and you are smarter.

i'm sure there are many factors...

 

Look around and compare things to when we had a "goldilocks" economy, you can't be faulted for being bearish, but that don't pay the bills I know.

The selloff was huge, the rally is huge. Many would like to get a piece of that action again. Right now the trend is the friend, he is a very irrational friend. I keep on trying to get another friend but he is a total asshole. Then their's Mr. Smirnoff

 

The good news from a trading perspective is that whenever this bear rally does end, we're gonna get some nasty volatility again. Personally I'm incredibly happy as a trader that they are jamming this thing up... the higher the better. It will make the fall that much more volatile, and make me that much more money. I strongly prefer this scenario to the alternative, which would have been a much weaker and more dead market. You have to get high up if you want to make money in another crash...

 

This is how I see it. Traders are human beings and some of them have psychological issues. Im not going to say problems, but issues.

The issue is that the same issue that is brought upon most human beings which is that old habits are hard to change. They remember 2008 when everything was ripe for shorting. They may have doubled or tripled their accounts from shorting or buying puts.

Now they "hope" that the indexes will go down. They want to make money again shorting them and then buy everything at the bottom so they too can be the next Dan Zanger.

Zanger too learned his lesson. He made 45 million on the way up and then lost 20 million on the way down because he had not really traded through a bear market.

In order to be a trader hope cannot be in your vocabulary. You are better to follow historical trends and patterns then to invent something new and "hope" it works.

I can tell you this. It sucks being broke. Thats what you will be if you dont learn your lesson now and I mean right now. Those indexes are set to surge higher. Unfortunately, some wont learn they have issues until they are broke, flat broke.

 

i just see a market up 50% in 6 months.

sure, it can go on...........but not indefinitely.

 

Gubinec,

What you say is total bunk IMHO. You are not trading, you are gambling if you have this so called urge to short the markets to “get even” with someone or the “man.” Lose money or go broke, that will show them.

Shorting is a tool, nothing more and nothing less. It is an opportunity to have more chances to implement a positive expectancy setup. The more times I implement those setups, the better my results will be in the long term. Long or short makes no difference to me.

Don’t get me wrong, you are just as entitled to an opinion as anyone, including me, but what you are suggesting is why “you” have a problem with your shorts, not why most do. You said, “We are here to make a profit and not be right.” I suggest you follow that advice, which I agree with. But don’t add additional psychological issues to your trading to make things harder on yourself. Best of luck.

Good trading.

BM

 

Been sitting here since 1600 watching a great tennis match and popped into ET and see this thread of losers all bitching how they are all losing their ass.

Is it any wonder why i think i am about 2 posts from dropping ET forever.

What a bunch of losers. Maybe this is my final post.

 

+1