Why are bearish markets bad if there are future contracts?

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

  1. deaddog

    deaddog

    With stocks it's Risk/ Reward!
    When you are long all you can lose is your initial investment. When you are short the loss can be much greater than your initial investment.
    When short you borrow stock to sell. The borrower can ask for their stock back at the most inopportune time.
     
    #31     Feb 23, 2023
    murray t turtle likes this.
  2. %%
    Exactly;
    except with swing singles stocks short/ easy to gap up waaaaaaaaaaaaaaaay past your stop\or get bought out for more than you thought .
    ITS not so much bear = bad;
    its so few funds specialize on bear side\
    + so many do+ profit on long side which is a hint but not a prediction.
     
    #32     Feb 23, 2023
  3. SunTrader

    SunTrader

    If you avoid market moving news related moves and holding over weekends, yes.
     
    #33     Feb 23, 2023
  4. easymon1

    easymon1

    Are you wanting to trade crypto?
    Why?
     
    #34     Feb 23, 2023
  5. Businessman

    Businessman

    For long term trading shorting is just harder, intra and shorter term it makes less difference.

    If you think percentages as most people do, then some stock or bitcoin futures goes from 20 to 40, you make 100%, but 40 to 20 is just a 50% profit.
     
    Last edited: Feb 23, 2023
    #35     Feb 23, 2023
    murray t turtle likes this.
  6. SunTrader

    SunTrader

    Meaningless. Same $20 gain either way, same ROE used.
     
    #36     Feb 23, 2023
    murray t turtle likes this.
  7. toli

    toli

    Because it’s volatile, and if I can learn to time the market right, there’s a lot of money to be made. Not the same with stocks/currency which can take forever to move and are better if you want to build your retirement fund or something.
     
    #37     Feb 23, 2023
  8. %%
    Good points;
    even though there is a much greater risk with bit cons.
    And leverage makes it much more risky/ even a good trend like RE can be foreclosed ;
    100% of foreclosures are caused by leverage or other stupidity...... like get rich quick cons
     
    #38     Feb 23, 2023
  9. easymon1

    easymon1

    What trading websites do you spend time on?
     
    #39     Feb 23, 2023
  10. toli

    toli

    #40     Feb 23, 2023