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He does know there is a chance it goes higher before it goes lower, short it wrong and you go broke
by m3kw9 5y ago
He does know there is a chance it goes higher before it goes lower, short it wrong and you go broke
- anonporridge 5y agoAlso, if you're wrong, shorts have the effect of not only losing you money, but giving energy to rise when you get liquidated or voluntarily close your position. You must close you shorts at some point, otherwise you go bankrupt, which means buying and driving the price higher. On the other hand, a long position (non leveraged) on a dying asset is something you ride all the way to zero if your pride demands it, without forcing you to feed into the direction you don't want to be true. So long as it's not 100% of your portfolio, you won't go broke holding it into the ground.
- dehrmann 5y agoIrrational...solvent.