The problem with shorting is you have to guess when the bubble pops. Call it too early, and you don’t get the short at all. Call it too late, and any possible earnings may get wiped out by rebounds and/or new bubbles.
You also usually short with leverage not actual full capital. To hold a short position for a long requires solvency and hopefully you don’t hit your stop loss and just lose.
MotoAsh@piefed.social 2 months ago
The problem with shorting is you have to guess when the bubble pops. Call it too early, and you don’t get the short at all. Call it too late, and any possible earnings may get wiped out by rebounds and/or new bubbles.
SleeplessCityLights@programming.dev 2 months ago
You also usually short with leverage not actual full capital. To hold a short position for a long requires solvency and hopefully you don’t hit your stop loss and just lose.
Powderhorn@beehaw.org 2 months ago
While I grant these things are true, there’s no way in hell multiple people aren’t trying this bet.
MotoAsh@piefed.social 2 months ago
“multiple people” doesn’t mean much unless it’s one of the top twenty people that own most of the stock market.
Powderhorn@beehaw.org 2 months ago
Sure, but contrarian investment and bets are built into the system. Everyone wants to think they’re the genius.