I feel safe only in short positions

hello people!
analyzing my business diary in the past few weeks, i noticed that my best offers were short. i believe that i created a greater affinity in short positions and i feel safe entering these businesses. is it a common feature among retail negotiators? is it worthwhile to deepen my studies in these positions because i feel better with them?

obs.: forgive my English, I’m still learning.

Are shorts better for trading or maybe the market has been bearish so being short was better for everybody?

The market never stands still - be not be long in a bear market, do not be short in a bull market.

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Forex is a good market to go short–there is always a pair you can short. So, if you are comfortable with only shorting then that is all you should do for now and be good at it. For example: EURUSD is going up–find short opportunities in USDCHF. If USDCHF is going up, find short opportunities in EURUSD. Why? Both are highly inverse correlated.

The correlation is not 100% but very close. There are other pairs that do this.

Feel free to shoot me an email if you have more questions.

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Perhaps one market you don’t want to be shorting all the time in is the stock market–especially since the high side can go to infinity and the low side only goes to zero.

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thanks for the advice! I always keep an eye on the correlations, I will focus on short positions for the security I feel in it, I believe that opportunities will always exist … however, I am always filtering those opportunities and imposing a good dose of discipline and patience. great weekend!

I think it happens sometimes. I can’t say I feel “safe” while trading, there’s always some underlying tension, but I don’t have a preference for short or long positions.

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I think I saw someone post here with the same problem, a preference for only trading one direction. I’ll have to look for that thread, it was interesting because I think she tied it to psychology. Will post back when I find it! :relaxed: Also I don’t know if she ended up resolving that problem.

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In trading, it is better to trade in a way that makes you feel comfortable. If a trader does not feel at peace by following any strategy, he will never benefit from trading. You must have happiness in trading as you use strategy.

@Kathlyn_Pollich

I feel at home on the long side - my short operations lose nearly all the time.

When I stopped shorting my P&L skyrocketed.

It use to bother me that I wasn’t a ‘real trader’ if I couldn’t take both sides - but that’s dumb there are many long only or short only traders - and the real proof of a trader is profits not market direction.

With all that said I do still worry when we have big stock market sell offs (my best trades tend to be stock CFDs).

The only way I get hedge that is by trading gold, a few currency pairs, and recently started trading the VIX.

Also not all the stocks I follow go down at the same time thankfully.

I would definitely recommend that beginners have a bias for one side of the market (it needn’t matter which)…

Simply because we can focus our attention that much better on one side.

For most people, there is a slight psychological advantage to trading the long side, as we’re more accustomed to the belief that making money comes from rising prices. This has been reinforced by positive business and academic experiences in which the positive statistics are given precedent in a series of figures or graphically on a chart.

If we’ve ever seen charts on the news or in business, a rising chart is good, a falling chart is bad - so we’re all seen rising charts of sales, life expectancy, income, property values, population etc. Sometimes rising charts can be negative - rising average global temperatures perhaps, rising crime rates certainly - but its rare for a falling statistic with a positive implication to be displayed as a chart in the media.

@tommor

My big issue with shorts is with regardless of the market there always seem to be really fast short covering that scare the hell out of me.

Long side moves from what I have experienced tend to be smoother - although maybe I’m deluding myself.

That asymmetry is absolutely true in stock markets - the Dow and Nasdaq generally rise but their falls are very fast and steep. It is common that they fall faster than they rise - 3 deeply bearish closes on an index can wipe out 15 days of price rises.

But in forex? - in which field every short is of course also a long.
Maybe in the risk-on base currency pairs like AUD and NZD but I’m not so sure the effect is big enough to be worth focusing on…

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@tommor

Regarding currency yes your probably right - but currencies by nature have higher intraday vol anyway and my personal biases probably see that as short covering when in fact the long side is equally as volatile.

Which ever you cut it I’m sticking to the long side only!

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Both positions are good in my opinion. Whichever is profitable is good for investment. Short positions are good for day traders and long positions are good for stable investors.

If the strategy is good, it can be traded in any position. Profits in trading depend on psychology. With short position trades, if the emotions are under control, it will be much easier to make a profit.

Don’t strategies often depend on positions?