Should I go long or short?

  • This topic has 2 replies, 1 voice, and was last updated 3 weeks ago by DT38.
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  • #193151 Reply
    Xavier

      Hi people, quick question to pick your brains – do you find more success going long or short in day trading? I’m torn between riding the upswings or capitalizing on market drops. Is one approach generally more reliable or does it completely depend on the day and market mood?

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      • #193188 Reply
        Christian Harris
        Participant

          Unfortunately, there’s no honest answer to that question.

          Day trading success depends on various factors, including market conditions, trading strategy, and personal experience.

          It’s important to note that shorting can be riskier due to the absence of a cap on potential losses.

          In theory, a stock price can rise indefinitely, leading to unlimited losses. On the other hand, the downside for long positions is limited to the price of the stock going to zero.

          Long positions are typically considered safer for newer traders while shorting requires more experience due to the inherent risks.

          Many traders find going long more intuitive, as it aligns with buying low and selling high.

          Shorting demands a different mindset, as profits are made when prices fall. This can be psychologically challenging, especially during price spikes, as it requires the trader to manage their emotions and stick to their strategy.

          Traders may have more success going long in an upward-trending market, while experienced traders may find shorting useful in bearish or overextended situations.

          Successful day trading often involves both strategies, depending on the current market conditions.

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        • #193236 Reply
          DT38

            It’s all about reading the room (market). The idea of betting against the market feels counterintuitive but there is flexibility in going short. If you know how to spot overbought conditions or use technical indicators like RSI to find weakness, shorting can be rewarding like riding an uptrend. Just make sure nail down your stops.

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