A good trader is one who can make money both ways i.e. going short and going long. Generally traders tend to go long i.e. buy and avoid going short as they feel the guilt pangs that they are party to making the market fall which goes against the human emotions.
However; a successful trader makes money equally from going short and thus one need to learn to trade from the short side. Thus it makes sense to make sure that we are able to overcome the guilt pangs which come with shorting and below info will help you to achieve the same to take you to the next level.
However; a successful trader makes money equally from going short and thus one need to learn to trade from the short side. Thus it makes sense to make sure that we are able to overcome the guilt pangs which come with shorting and below info will help you to achieve the same to take you to the next level.
- Most people would rather own something (go long) than owe something (go short).
- Markets can (and should) also be traded from the short side.
- Watch for divergences in related markets - “Is one market making a new high and another not following?”
- Recognize that fear, greed, ignorance, generosity, stupidity, impatience, self-delusion and so on can cost you a lot more money than the market’s going against you, and that there is no fundamental method to recognize these factors.
- Do not blindly follow computer trading. A computer-trading plan is only as good as the program. As the old saying goes, "Garbage in, garbage out." Learn the basics of futures trading.
- It is amazing how many people simply do not know what they are doing. They are bound to lose, unless they have a strong broker to guide them and keep them out of trouble.
