In such cases, investors should ideally
only take short positions when the overall trend is down (overall price is making lower highs and lower lows).
Not exact matches
Many futures traders prefer to be long -
only traders, which means that they may not entertain the idea of
taking a
short position.
In this case, buying EEV was the same as
taking a bearish
position on the MSCI Emerging Markets Index (note that «
short ETFs» are designed to be used
only for quick,
short - term trades).
Although the turnaround in the stock's fortunes may
only prove to be temporary, few
short sellers can afford to risk runaway losses on their
short positions and may prefer to close them out even if it means
taking a substantial loss.
U r absolutely right mate dat d more important
positions are not being
taken care of, i too am disappointed and frustrated, but we are
only 2 - 3 players
short to actually compete for title.
When this isn't possible,
take a
short break (even if it's
only a 2 second break) every 20 minutes or so get out of the bad posture, move around or change
positions.
It is also possible that
only one of the offers is
taken, and you are stuck with a long or
short position that moves against you.
In my small unique book «The small stock trader» I also had more detailed overview of tens of stock trading mistakes (http://thesmallstocktrader.wordpress.com/2012/06/25/stock-day-trading-mistakessinceserrors-that-cause-90-of-stock-traders-lose-money/): • EGO (thinking you are a walking think tank, not accepting and learning from you mistakes, etc.) • Lack of passion and entering into stock trading with unrealistic expectations about the learning time and performance, without realizing that it often
takes 4 - 5 years to learn how it works and that even +50 % annual performance in the long run is very good • Poor self - esteem / self - knowledge • Lack of focus • Not working ward enough and treating your stock trading as a hobby instead of a small business • Lack of knowledge and experience • Trying to imitate others instead of developing your unique stock trading philosophy that suits best to your personality • Listening to others instead of doing your own research • Lack of recordkeeping • Overanalyzing and overcomplicating things (Zen - like simplicity is the key) • Lack of flexibility to adapt to the always / quick - changing stock market • Lack of patience to learn stock trading properly, wait to enter into the
positions and let the winners run (inpatience results in overtrading, which in turn results in high transaction costs) • Lack of stock trading plan that defines your goals, entry / exit points, etc. • Lack of risk management rules on stop losses,
position sizing, leverage, diversification, etc. • Lack of discipline to stick to your stock trading plan and risk management rules • Getting emotional (fear, greed, hope, revenge, regret, bragging, getting overconfident after big wins, sheep - like crowd - following behavior, etc.) • Not knowing and understanding the competition • Not knowing the catalysts that trigger stock price changes • Averaging down (adding to losers instead of adding to winners) • Putting your stock trading capital in 1 - 2 or more than 6 - 7 stocks instead of diversifying into about 5 stocks • Bottom / top fishing • Not understanding the specifics of
short selling • Missing this market / industry / stock connection, the big picture, and
only focusing on the specific stocks • Trying to predict the market / economy instead of just listening to it and going against the trend instead of following it
Regular readers of my blog might think that I'm a long
only value investor, but that's not the case: I do sometimes
take small
short positions in companies that seem fraudulent, have a poor business model or are simply far too expensive.
He
took people and their actions with everyday objects in unusual
positions, which they would
only be able to hold for a
short period of time, and locked them into
position using photography.