Thursday, March 26, 2015

how difficult is shorting?

contrary to a widespread myth, it is always easier to short than to long in a bull run

lemme give my logic

correction in a bull run generally takes place after the prices have overshot the equilibrium "fair price" by a good margin

in other words, when operators/bulls have bitten "more than they can chew" and have pumped the price a little too far from the level of fundamentals back.....

"falling back" of inflated prices is perhaps the only surest guarantee while there is no surety of the price of a good stock rising except being spotted by the value buyers and insiders. shorting of stocks from unrealistic unsustainable heights is a necessary evil for every stake holder in the market.

no fluctuation can ever take place if prices were not to correct. no accumulation will be possible. and no distribution profit booking by the accumulators.

nobody shorts or throws away a stock below or even at fair value lest some unwanted buyers buy it. discounting is a myth!

what we call dumping of stocks from tops is actually not dumping but "drama awakening of the sinners!!!"

it is unfortunate that the retail traders/investors consider the peak "fair value" and are "surprised" and hence panic-stricken at the fall......

genuine shorting (i.e. the one that isn't warranted by the fundamental shift of any stock) is the safest thing in the market.

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