If cryptocurrencies are your first trading experience, most likely you know a little about shortening and do not have the skills to earn money in this way. Moreover, you will likely hate those who shortit.
If you have ever visited the Tradingview chat Crypto you must have read smug replica bouncers-siterow. Maybe they caught you in Twitter or other social networks. Sorcery are always welcome to drop in price when other in this moment sad.
It’s time for us to further explore and understand the causes of the shortening, and most importantly, its implications and impact on the market. Now, 4 reasons why you should learn how to short sell.
Reason 1: This is the fastest way to profit
In the stock market there is an old phrase: “Markets go up the stairs and down the Elevator”. This means that markets are growing more slowly than the fall
Let’s look at this chart as an example:
We’ve seen how the market for weeks, creeping up and rolls head over heels down for a day or two. In the case of the diagram we see how the 8-day growth of the market declined in three days. You can earn significantly more money on the shortening only because fear is a more effective instrument of price impact, than hope or euphoria. This brings us to the next point.
Reason 2: Shortening protecting your profit.
Long positions do not make trading attractive. It’s like playing football on skates. Deciding not to short, you miss many opportunities of trading. The only true reason you should abandon the shortening — that is, if you are a true Hodler. If you are trying to sell cryptocurrency and not shortite, you do not trade. Shortening is an opportunity to make money on the fall and rise, looking at the movements of the market with both positions.
Reason 3: The Impartiality
If you trade Forex or futures, then you have no problems with shortening. It’s part of the “game”. It is done as easily as a long position. When you are looking for a profitable short-term trades, you avoid frustration that is inherent in long positions. But the bias is very dangerous for a trader not to have preferences — useful.
Reason 4: Shortening is honesty
When the stock market, futures contract, currency or cryptocurrency fall under the “short-attack”, is a sign of weakness. This is because traders and investors believe this asset. To detect wimps in the market even shortening not needed! Enough classic good sale (which is very very often). It shorteri give the bulls and bears real picture of the significance of the asset. Shortening is necessary to ensure honesty and integrity in the market.