Short now = make lots of money?

[leowonderful]

It's absolutely not as simple as shorting every bounce or upwards movement anymore- I did see comments like this on a Bitcoin trading subreddit a few months back, but with the many "lightsaber-like" (example here (click here)) patterns coming up on the 1- and 5-minute graphs on exchanges like Bitfinex and Bitmex that are designed to weed out leveraged traders on both longs and shorts, it's easy to lose your money on a leveraged long or short. That doesn't mean it's not possible to make a profit shorting anymore, but you should take caution in your trades more than ever now.

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[Thanasis]

Hi,

I have no experience short selling but I debate shorting now. Good idea? Anyone with experience? BTC seems overbought...

Good idea,but its really not advisable to do if you have no experience before since the prices can keep dumping or bumping without any signal even so you have to be ready for losing your money to make more or lost of money.

[iv4n]

Hi,

I have no experience short selling but I debate shorting now. Good idea? Anyone with experience? BTC seems overbought...

Good idea,but its really not advisable to do if you have no experience before since the prices can keep dumping or bumping without any signal even so you have to be ready for losing your money to make more or lost of money.

It`s good idea, only thing you need to have is perfect timing to get out and get in again when price drops. It works sometimes, sometimes not, what is important is to have some back up, in case price moves in other direction. Trading is all about timing, perfect trade is when you buy or sell in the right time (perfect buy is before price rise, perfect sell is just before price drop). It`s all about risking too, you don`t catch that right time all the time, you make mistakes that costs, that`s learning, think of it like paying for knowledge.

[BitHodler]

That doesn't mean it's not possible to make a profit shorting anymore, but you should take caution in your trades more than ever now.

I always found it fascinating how people even at current levels have the balls to short Bitcoin or any other crypto currency. I get it that you can set stop loss targets, but they mostly hover 1-2% above the entry price.

With how volatile the market organically is, your stop loss will very likely be triggered and you end up with no profits, even if the price ends up tanking hard afterwards. That's not trading, but straight gambling in my opinion....

The only thing you are doing is open position after position hoping that you will end up with more winning than losing trades. Technical analysis may give you an edge, but it's still a calculated guess.

[Biscutard]

Hi,

I have no experience short selling but I debate shorting now. Good idea? Anyone with experience? BTC seems overbought...

Good idea,but its really not advisable to do if you have no experience before since the prices can keep dumping or bumping without any signal even so you have to be ready for losing your money to make more or lost of money.

It`s good idea, only thing you need to have is perfect timing to get out and get in again when price drops. It works sometimes, sometimes not, what is important is to have some back up, in case price moves in other direction. Trading is all about timing, perfect trade is when you buy or sell in the right time (perfect buy is before price rise, perfect sell is just before price drop). It`s all about risking too, you don`t catch that right time all the time, you make mistakes that costs, that`s learning, think of it like paying for knowledge.

With less experience on trading i don't think OP would make it even just to get in and if he gets in his problem now is how to get out. Talking about of a perfect timing which is not really helpful because no one can execute a perfect timing, there is no such thing as perfect in this world.

OP might lose a lot of money trying to fit in with less experience, it might be better if he would just slowly give it a shot and not just shoot them all the way.

[1Referee]

I get it that you can set stop loss targets, but they mostly hover 1-2% above the entry price.

With how volatile the market organically is, your stop loss will very likely be triggered and you end up with no profits, even if the price ends up tanking hard afterwards. That's not trading, but straight gambling in my opinion....

That's what happens when you over-leverage your trades. I stick with 2-5x (mostly 2x) in order to have my trades become more profitable, even if it takes days or weeks for me to make profit. I don't chase quick profits, which is where most people go wrong and therefore over-leverage every trade. Anything above 10x is playing with fire, especially here in crypto where the market is extremely volatile already.

Another mistake is that people focus on one single trade, so they either gain or lose, while they could open a new position to benefit from a short term opportunity without affecting their other trades. It's just a matter of logical thinking, but considering how people aren't shy of using 50-100x leverage counts, there is no sense to utilize. Bitmex like platforms have been turned into casinos.

[davinchi]

This is time for buying and definitely not for going on shorting way of trading. I always recommend to go for bitcoins with long term plans and with shorting you cannot plan up for longer term. We must buy now as bitcoin market may start rising up in the near future and even it will fall down then also we must buy so that we can sure about no missing all the possible lower prices. But, many people started speculating about new ATH which might be possible within this year.

[perla]

Hi,

I have no experience short selling but I debate shorting now. Good idea? Anyone with experience? BTC seems overbought...

Hope i have skill to do margin trade, because sometime it can be good thing to do when market still be bear market like this. I heard someone can get money even market still on bad condition, but risk of is same big as it's chance to get profit too.

[pixie85]

This is time for buying and definitely not for going on shorting way of trading. I always recommend to go for bitcoins with long term plans and with shorting you cannot plan up for longer term. We must buy now as bitcoin market may start rising up in the near future and even it will fall down then also we must buy so that we can sure about no missing all the possible lower prices. But, many people started speculating about new ATH which might be possible within this year.

I honestly don't know why people are beginning to talk about shorting when we are 80% down from ATH. It's the same stupidity that leads people to buy coins that went up by 300% in the recent month. There's always a small chance your short will play out but if we aren't at the bottom yet we will soon be. Don't get too greedy people!

[MoonCrypt]

The major take on this is that crypto trading is full of surprises and your plans go to shit in seconds

first always be ready to risk what you can lose!!

yes you can make good money also you can lose lots of money

[shield132]

It's quite funny how the mass manages to be wrong time on time again. They bought the peak near the end of last year and sold--likely will sell the bottom near the end of the current year.

At some point you should expect people to follow common sense and to see where they go wrong, but nope, they keep burning themselves chasing quick profits. This market literally trashes these folks.

A colleague of mine was EXTREMELY bullish weeks before the price tanked below $6000 and now suddenly thinks Bitcoin is going to fall to $1500 because "experts" said so. Smh.....

There was a one man on reddit (possibly you know too) who put his house in bank and bought bitcoins when price was almost 20K, imagine what he did, how much he risked and that was due to no knowledge.
Those proposals from "experts" is very funny too, if we follow them, then we will lose all of our money. Persons who talk a lot of bullshit are called experts nowdays.

[mirakal]

It's quite funny how the mass manages to be wrong time on time again. They bought the peak near the end of last year and sold--likely will sell the bottom near the end of the current year.

At some point you should expect people to follow common sense and to see where they go wrong, but nope, they keep burning themselves chasing quick profits. This market literally trashes these folks.

A colleague of mine was EXTREMELY bullish weeks before the price tanked below $6000 and now suddenly thinks Bitcoin is going to fall to $1500 because "experts" said so. Smh.....

There was a one man on reddit (possibly you know too) who put his house in bank and bought bitcoins when price was almost 20K, imagine what he did, how much he risked and that was due to no knowledge.
Those proposals from "experts" is very funny too, if we follow them, then we will lose all of our money. Persons who talk a lot of bullshit are called experts nowdays.

That's was a big mistake, he got FOMO at best, I think he likes to follow Changpeng Zhao, CEO of business who sold his house and get successful in crypto. It could actually be possible, however is timing is very wrong, Changpeng Zhao bought bitcoin during the early stage when he sees the potential, but the man in your example bought during the peak, I wonder how he live his life now, I hope he is okay.

[Ararbermas]

Doing short term on this condition of the market isn't safe especially if you're a beginner because growth rate of market as of now is so volatile and very  risky as well  because of being unpredictable . If you want to paly right now make sure you have specific strategy and enough knowledge to prevent regrets!

[SARA ISLAM]

Currently, crypto market acting in sideways nowadays short trade profitable if you find out overbought and oversold positions in short timeframe. keep your eyes on the market when you enter a trade.

[tmfp]

"Overbought and "oversold" are words used without meaning unless they are accompanied by relevant analysis, either technical or fundamental.
Just because an instrument or asset has fallen (even a long way) in value doesn't make it oversold, or vice versa.
Traditional fundamental analysis was developed for financial instruments like stocks and shares and relies largely on comparative P/E ratios to provide a quantitative overview. Some people, me included, find it difficult to apply fundamental analysis to crypto.
Technical definitions of these terms are mathematically based and involve the use of tools such as RSI with confirmation from other indicators.
Here's a couple of 101 primers
https://www.investopedia.com/terms/o/overbought.asp
https://www.investopedia.com/terms/f/fundamentalanalysis.asp

[iv4n]

"Overbought and "oversold" are words used without meaning unless they are accompanied by relevant analysis, either technical or fundamental.
Just because an instrument or asset has fallen (even a long way) in value doesn't make it oversold, or vice versa.
Traditional fundamental analysis was developed for financial instruments like stocks and shares and relies largely on comparative P/E ratios to provide a quantitative overview. Some people, me included, find it difficult to apply fundamental analysis to crypto.
Technical definitions of these terms are mathematically based and involve the use of tools such as RSI with confirmation from other indicators.
Here's a couple of 101 primers
https://www.investopedia.com/terms/o/overbought.asp
https://www.investopedia.com/terms/f/fundamentalanalysis.asp

Who ever decided to short yesterday has been liquidated. Price went up, like always shorter`s stayed short this time, and people can continue to read all kind of things and try all kind of strategies but in the end its just a market that is going up and down. To trade you need to have a back up, and if you have a back up for your back up you will be more comfortable.
Assets are always going up and down, will you earn or lose from your trades depends of your knowledge about the market itself, about the players, about the potential future, and many other things, think it in a way like this the more you know about it, it will be easier for you to handle with it, what ever that is!

[Reid]

If that can easily be seen then we may be rich now. Or I wont be sharing it first and will get myself some loads of cash before I tell it to anyone.

It aint that easy to foretell the future so you will just need to guess and risk. You could short it anytime you want but you wont know what tomorrow will be. Maybe you can make profit out of it or maybe not. Asking too much will not help. At the end of the day, it will still be your own decision.

[Isiaka208]

One funny thing here is that it is full of uncertainties, and therefore you know not the next line of market action. What do you do? Always go in with a plan whether shorting for long or shorting for immediate gains. But I beg to differ that BTC is not overbought, it is oversold instead.

[coolcoinz]

"Overbought and "oversold" are words used without meaning unless they are accompanied by relevant analysis, either technical or fundamental.
Just because an instrument or asset has fallen (even a long way) in value doesn't make it oversold, or vice versa.
Traditional fundamental analysis was developed for financial instruments like stocks and shares and relies largely on comparative P/E ratios to provide a quantitative overview. Some people, me included, find it difficult to apply fundamental analysis to crypto.
Technical definitions of these terms are mathematically based and involve the use of tools such as RSI with confirmation from other indicators.
Here's a couple of 101 primers
https://www.investopedia.com/terms/o/overbought.asp
https://www.investopedia.com/terms/f/fundamentalanalysis.asp

Aside from a mathematical analysis there's also common sense. There are questions you can ask yourself before investing like:
-is it performing its role, is it working?
-does it have fundamental flaws?
-what is public interest, do people like the idea?
-did it change for better or for worse in the last year?

Now, take 2 periods in time, one in the very early bull market and one now, in the end of the bear market, and decide if it was better or worse back then. At the time when people were paying more for it than they are paying now. Like when Bitcoin was trading for 4k USD in 2017. Was Bitcoin faster, more popular back then, or maybe it is faster and more popular now?

In my opinion in August 2017 it was much slower, less popular, had much more issues and bugs that were patched in a later date, and there was much less exchanges, ATMs and so on, but people were willing to pay 4k USD for it. If the value at that point was objectively calculated, and it might have been because we haven't been in a hype phase yet, it should be worth more today. If an 85% discount isn't enough to make people think of buying something, nothing is.

[BitHodler]

There was a one man on reddit (possibly you know too) who put his house in bank and bought bitcoins when price was almost 20K, imagine what he did, how much he risked and that was due to no knowledge.
Those proposals from "experts" is very funny too, if we follow them, then we will lose all of our money. Persons who talk a lot of bullshit are called experts nowdays.

I haven't heard of that yet, but it's horrible for sure. Average joes aren't capable of making investment decisions, and we are being presented the evidence of that in the most brutal way.

These are usually the people who look up to experts a lot, and back in 2017 when everything kept going up these experts were right all the time, which for average joes might have been the reason to trust their opinions.

At least, those who got burned will likely not make the same mistake again. If they play it well, the next bull run will be where they sell into rathet than buy into. We all started as a noob and improve as time goes by.