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That includes having short positions? Why would that be particularly bad if the momentum is downward?

StopHammoTime 4y ago
You shouldn’t really be shorting if you don’t know what you’re doing, so the parent still applies.
syzygyhack 4y ago
It includes shorts because you don't know when the market will turn around. It does, however, exclude DCA, which is almost always a sensible investment strategy.
- danuker 4y ago
  > DCA, which is almost always a sensible investment strategy. It might make more sense to lump-sum invest, if volatility is small relative to the return. At least for the stock market, it's not often worth sitting on cash.
  - nieve 4y ago
    But with cryptocurrency (the investments in question) volatility is quite high.
- tobltobs 4y ago
  It includes DCA because you don't know if the market will turn around.
Bayart 4y ago
Trending downwards doesn't mean it can't retrace 24% and liquidate your position before going down again. And that's if it is trending downwards.
danuker 4y ago
Shorts risk unlimited potential losses. You might owe more than you own, if the price rises, you fail the margin call, and they liquidate.
rvz 4y ago
> That includes having short positions? Yes. > Why would that be particularly bad if the momentum is downward? That is why. You are too late for justifying a short position if it is already going down as you can still get yourself liquidated quickly if the price jumps in one day after a correction.
rabite 4y ago
@BXRekt on twitter shows liquidated short positions on Bitmex in realtime. https://twitter.com/BXRekt/status/1527462460457984000 https://twitter.com/BXRekt/status/1527462460457984000 Here's a million dollar short that got liquidated all of seven hours ago. Shorting Bitcoin is madness, partially because no regulation prohibits most exchange operators from frontrunning their own customers (besides the ones that voluntarily signed on to become the benchmarks for CME's Bitcoin futures price). Exchanges and market makers will collaborate to artificially push prices around to optimally liquidate shorts -- it happens all the time. They love people shorting Bitcoin.
puranjay 4y ago
The crypto market is unregulated and manipulated heavily by whales (most of whom operate on bitfinex which itself has close ties to Tether). Holding a short position can be profitable, but also know that a short squeeze is easy. There was an incredible shorting opportunity with the recent Luna fiasco though. Literal millions made overnight.

You shouldn’t really be shorting if you don’t know what you’re doing, so the parent still applies.

It includes shorts because you don't know when the market will turn around. It does, however, exclude DCA, which is almost always a sensible investment strategy.

danuker 4y ago
> DCA, which is almost always a sensible investment strategy. It might make more sense to lump-sum invest, if volatility is small relative to the return. At least for the stock market, it's not often worth sitting on cash.
- nieve 4y ago
  But with cryptocurrency (the investments in question) volatility is quite high.
tobltobs 4y ago
It includes DCA because you don't know if the market will turn around.

Bayart 4y ago

Trending downwards doesn't mean it can't retrace 24% and liquidate your position before going down again. And that's if it is trending downwards.

danuker 4y ago

Shorts risk unlimited potential losses. You might owe more than you own, if the price rises, you fail the margin call, and they liquidate.

rvz 4y ago

> That includes having short positions? Yes. > Why would that be particularly bad if the momentum is downward? That is why. You are too late for justifying a short position if it is already going down as you can still get yourself liquidated quickly if the price jumps in one day after a correction.

rabite 4y ago

@BXRekt on twitter shows liquidated short positions on Bitmex in realtime. https://twitter.com/BXRekt/status/1527462460457984000 https://twitter.com/BXRekt/status/1527462460457984000 Here's a million dollar short that got liquidated all of seven hours ago. Shorting Bitcoin is madness, partially because no regulation prohibits most exchange operators from frontrunning their own customers (besides the ones that voluntarily signed on to become the benchmarks for CME's Bitcoin futures price). Exchanges and market makers will collaborate to artificially push prices around to optimally liquidate shorts -- it happens all the time. They love people shorting Bitcoin.

puranjay 4y ago

The crypto market is unregulated and manipulated heavily by whales (most of whom operate on bitfinex which itself has close ties to Tether). Holding a short position can be profitable, but also know that a short squeeze is easy. There was an incredible shorting opportunity with the recent Luna fiasco though. Literal millions made overnight.