Loading ...Shorting a Bull Market
I have tried this many times with the Dow and PMs
Cardinal Sin…BAD IDEA !
Rarely works out ( especially with 3Xers…Decay kills )
You may look like a genius for a day or two..you may even catch a nice countertrend move BUt you will NOT usually sell before the trend resumes
You will likely be adding as the move goes against you right from the start…ANOTHER BAD IDEA and Cardinal Sin
If you think a “correction” is coming sell some positions…Cash is the hedge (Spock has said this all along)
Well said, Fully. I have also tried the ETF’s many times for shorting purposes. They are tricky to make work, for sure. I think I will raise cash, as you suggest, if I think a correction is imminent. This market is as changeable right now as a weather vane in a tornado. 🙂
If you thinking a correction is coming you might be tempted to buy DUST calls they are cheap. However this is another bad idea. I bought NUGT calls when they were dirt cheap however they did a reverse split 10 for 1 so my calls were orphaned and stopped trading. I had to exercise them just to get the intrinsic value out of them lost the premium. I was mad as hell about that