Why are bearish markets bad if there are future contracts?

Discussion in 'Trading' started by toli, Feb 22, 2023.

  1. That's something only you can answer. We don't know your "vibes".
    Going short is often advised against when the customer/reader is not familiar with financial markets (financially illiterate, newbie). Once you know what you're doing you can use both sides: markets going up, and markets going down.
     
    #11     Feb 23, 2023
  2. toli

    toli

    Why is shorting more dangerous?
     
    #12     Feb 23, 2023
  3. toli

    toli

    How do you learn that? To time the market?
     
    #13     Feb 23, 2023
    easymon1 likes this.
  4. maxinger

    maxinger


    It is not.

    Shorting is dangerous when

    - the market is on the uptrend and you short it
    - the market is trendless and you short it
     
    #14     Feb 23, 2023
  5. newwurldmn

    newwurldmn

    why can’t a trader specialize in one: up or down?
     
    #15     Feb 23, 2023
  6. newwurldmn

    newwurldmn

    It’s much easier to make money in an inflating market where new money is coming in.

    It’s a lot harder to make money when you are fighting to divvy up a set pot.


     
    #16     Feb 23, 2023
    semperfrosty and murray t turtle like this.
  7. The traders in this forum know how to trade up down and sideways to make money.

    for average people, shorting is more dangerous because if you sell something short at $20 and it rockets to $100 you’re down $80/contract on margin and your portfolio is liquidated. If you buy the stock at $20, the most you can lose is $20/contract, no margin call.
     
    #17     Feb 23, 2023
    toli likes this.
  8. Pekelo

    Pekelo

    Let's say you shorted BTC at 5K... See?

    If you actually trade it (in and out) it is not more dangerous, but if you have a bias and doesn't want to give it up against the trend, you can lose more than 100%.
     
    #18     Feb 23, 2023
    toli likes this.
  9. Pekelo

    Pekelo

    You can't, but you could use some kind of price crossing over the SMA or the 50 and 200 cross. That would keep you in the trend.
     
    #19     Feb 23, 2023
  10. SunTrader

    SunTrader

    .... except when it isn't.
     
    #20     Feb 23, 2023