Last December I curiously dropped into a Youtube chat room with like 5000 traders in it, and the guys in the video shorted AMD at 122 and NVDA at 497 thinking that the big percentage gain was enough to short them….total stupidity. They were looking to swing into a gap down instead they’re down probably 30% since that time. People ACTUALLY DO THAT? Yes, there are people who short big percentage gaps up thinking “it HAS to go down eventually”. That’s the most popular thing to do on youtube, well in the past couple years. What kind of maniac would do that?
Shorting is extremely stressful and knowing the loss could be infinite makes it 10X worse. When the trend is up long term, that alone can save a bad trade into a profit. But say you shorted TSLA at $50 when it shot to $1200, the margin call would be insane.
Since I’ve mastered Elliott Wave and can quickly recognize trends intraday and long term, I know that if I make a trading mistake and the ETF or stock that I buy goes straight down, I have the experience and knowledge to know that it’s “just a W2 or W4” and my position will come roaring back.
It’s not like every time I touch something it goes up…there have been several trades where I got trapped in the past 3 months with quick deep fades, and I’m down up to $2000-$3000, but I hold knowing the trend is up, and I either break even on the nose or make a profit. 99% of traders would have thrown the towel in, but not me.
