Why you shouldnt be shorting

[TimtheYoutuber]

If you dont understand marginal trading, check out my Medium Post: Understanding Marginal Trading.


I see a lot of people are interested in shorting, however I would advise against it. The market is acting irrational, and people are investing in obvious "shit coins". Shorting a coin that you think is over evaluated is not a good idea, because it can continue to be over evaluated, tons of people are investing in awful coins that have NO utility. So even if you are right, you are playing a dangerous game and when you factor in risk management it likely isn't a good idea. Thoughts?

[junjunsalsalani]

Shorting requires you to join a platform that allows margin trading and deposit some bitcoin or whatever coin you want to short into your account as collateral.Some platforms like bitfinex offer leverage at 1:3 or more but be warned keep that margin trading can generate much larger losses than traditional trading. Although there are margin call limits in place in most cases, it does not mean that you cant lose more money than you actually have in your account.

i found this in google what sorting is,now i know how it works.

[TimtheYoutuber]

Shorting requires you to join a platform that allows margin trading and deposit some bitcoin or whatever coin you want to short into your account as collateral.Some platforms like bitfinex offer leverage at 1:3 or more but be warned keep that margin trading can generate much larger losses than traditional trading. Although there are margin call limits in place in most cases, it does not mean that you cant lose more money than you actually have in your account.

i found this in google what sorting is,now i know how it works.

Lots of people short in the stock market, and then moved it to crypto currency. However right now since we are still extremely early I would recommend to not short for the above reasons.

[beachbummer]

Given the volatility of cryptos, even if you put in a stop loss order in place, it might gap down past that price and leave you with a big loss.

[TimtheYoutuber]

Given the volatility of cryptos, even if you put in a stop loss order in place, it might gap down past that price and leave you with a big loss.

Which is why I would recommend to not short

[Rinsend]

we must evaluate whatever we are going to do.
because otherwise we only get the loss of all the foolish acts we do
I suggest to kitan play safe in trading
because losing money from trading is very painful because we can not play our fund as in gambling

[jjdub7]

I see a lot of people are interested in shorting, however I would advise against it. The market is acting irrational, and people are investing in obvious "shit coins". Shorting a coin that you think is over evaluated is not a good idea, because it can continue to be over evaluated, tons of people are investing in awful coins that have NO utility. So even if you are right, you are playing a dangerous game and when you factor in risk management it likely isn't a good idea. Thoughts?

Depend how you choose your trading pairs and are you willing to panic on every tick.

I'm successfully shorting mid-volume alts from months. And I like the game. It's fun and profitable.

[TimtheYoutuber]

I see a lot of people are interested in shorting, however I would advise against it. The market is acting irrational, and people are investing in obvious "shit coins". Shorting a coin that you think is over evaluated is not a good idea, because it can continue to be over evaluated, tons of people are investing in awful coins that have NO utility. So even if you are right, you are playing a dangerous game and when you factor in risk management it likely isn't a good idea. Thoughts?

Depend how you choose your trading pairs and are you willing to panic on every tick.

I'm successfully shorting mid-volume alts from months. And I like the game. It's fun and profitable.

Like I said, you can be successful but with your risk management strategy do you not see the dangerous effects? I think it is generally a good idea to stay away from it because the market is to irrational.

[hiwainmoto]

this is very dangerous move for the casual traders,it has a higher risk in losing your money between if you can face the consequences why not? if you want to gain $3M dollars in 6hrs and and you can risk your $1M losing in just 3hrs then go.

[artmen007]

This is a very dangerous tool, not everyone can afford to use it wisely. such people are one unit.

I tried to short all with varying degrees of success. And where it turned out it was because of the advice of professional traders. And who say that it is very risky.

If you give advice then you can try to short sell. Let's say 40%. But for this we need to understand the market. Let's say BITCOIN is falling and you znete that Novosel background is poor and he can still fall. You sell. But you have to be sure that this is just a correction and the price is still then go up

[altcoinhunter01]

You explain the things very well. I am fully agree with your views. But how to identify undervalued coins.

[TimtheYoutuber]

You explain the things very well. I am fully agree with your views. But how to identify undervalued coins.

Thanks I appreciate the comment. If you are interested in learning how to evaluate a coin, I have a youtube channel and posted a helpful video : https://www.youtube.com/watch?v=LLwHkIKhddw&t=0s

PM me if you have any questions, or you can search for my first thread which contains my official thread for the channel.

[DevelopmentBank]

IMHO, now would be a good time to short altcoins. With the way bitcoin is surging upwards, we can expect that more people will hear and read about it then consequently invest in bitcoin for fear of missing out. Bitcoin still has more pump behind it. Just short your altcoins now and buy more of them later once bitcoin price has stabilized even just a little

[Poppy5555]

Hi and Welcome to Bitcoin Forum! 

Shorting is much riskier than buying stocks, or what’s known as taking a long position. When you buy shares of company, you obviously hope they will rise in the short term or over a long period or maybe that they will just provide dividend income.
If you have a short position, there’s no limit to how much money you can lose if the shares rise. If the share price increases soon after you place a short position, you could quickly “cover” by buying back the shares and returning them to the investor you borrowed them from. If you’re lucky, you might not lose very much but novody knows future so one should avoid shorting!

[TimtheYoutuber]

Hi and Welcome to Bitcoin Forum! 

Shorting is much riskier than buying stocks, or what’s known as taking a long position. When you buy shares of company, you obviously hope they will rise in the short term or over a long period or maybe that they will just provide dividend income.
If you have a short position, there’s no limit to how much money you can lose if the shares rise. If the share price increases soon after you place a short position, you could quickly “cover” by buying back the shares and returning them to the investor you borrowed them from. If you’re lucky, you might not lose very much but novody knows future so one should avoid shorting!

I agree which is why people should not be shorting

[TimtheYoutuber]

Does anyone else have anything to add to this, or disagree? I would like to read some more peoples comments.

[TimtheYoutuber]

The market right now is a perfect example of why you shouldn't be shorting.

[TimtheYoutuber]

Does anyone else have an opinions of the margin market? ( in regards to cryptocurrency )

[Irriducibili]

That's how the business works, so...Why not if you can make a several amount of $$$ from such shorting?

[Krezz2017]

I still do not understand. Do you like this author? He invested in this coin? And why did he choose this one out of a thousand coins?