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A recognition that the market may continue to be irrational for a long time, so even if you believe a company to be extremely overvalued it may be unwise to sho
by CrazyStat 6y ago
A recognition that the market may continue to be irrational for a long time, so even if you believe a company to be extremely overvalued it may be unwise to short it unless you have infinitely deep pockets.
If you insist on a single word, may I suggest "experience."
- gpm 6y agoAnd even if you have infinite money, a short squeeze in the meantime can mean that you permanently lose money on shorting the stock before it goes down.