Why are bearish markets bad if there are future contracts?

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

  1. SunTrader

    SunTrader

    ever heard of ... using a stop?

    Enron (and many other examples) went to zero.

    Name one stock that went to infinity.
     
    #21     Feb 23, 2023
  2. newwurldmn

    newwurldmn

    My personal experience is that it’s hard to trade both sides of the market. You have to be good at one type of market regime. The anti of that regime will be a challenge.

     
    #22     Feb 23, 2023
  3. good ol’ suntrader. feel free to explain to the OP how to setup a short trade with a stop loss. entire hedgefunds have been wiped out “forgetting” to use one.
     
    #23     Feb 23, 2023
    murray t turtle likes this.
  4. rb7

    rb7

    Using Stops has nothing to do with evaluating the risk.
    Using Stops is a way to manage the risk.

    It's easy to understand that the most you can lose going long is your initial invested capital.
    Now tell me what is the most you can lose if you go short?
    Don't answer this. And the infinity shit is not a good argument.
     
    #24     Feb 23, 2023
    newwurldmn and countryBoy641 like this.
  5. SunTrader

    SunTrader

    Trading OPM.
     
    #25     Feb 23, 2023
  6. SunTrader

    SunTrader

    Really now?

    Evaluating is not managing?
     
    #26     Feb 23, 2023
  7. toli

    toli

    Who's crazy enough not to use stops? I mean that's the first thing you learn as a newbie. Why would professional firms not use something as straightforward to manage their risk?

    The most you can lose is what you put on your stop-loss, no?
     
    #27     Feb 23, 2023
    murray t turtle likes this.
  8. Pekelo

    Pekelo

    Crypto whales. Let's say you bought BTC for a dollar back then. Had you used stop losses, you would have never made it to today's price of 24K.
     
    #28     Feb 23, 2023
  9. 2rosy

    2rosy

    no catch. you can think of it as bullish with respect to the denominator. in this case bullish on $ vs bitcoin
     
    #29     Feb 23, 2023
    toli likes this.
  10. ph1l

    ph1l

    No, gaps can cause you to lose more and can happen anytime.
    upload_2023-2-23_10-37-6.png
     
    #30     Feb 23, 2023
    murray t turtle likes this.