i love shorts!
statistically, I have much more positive outcomes on them, when compared with longs.
shorts – it's emotions and panic, and often faster profit.
and here are my observations and thoughts on a fairly common pattern of downward movement using an example… all movement is possible divide conditionally into 4 Phase:
phase 1: & quot; plum start" : тут все понятно – for some reason the stock is sold, movement started, we are ready for this and are waiting for the moment or have already entered. stock прошивает лоу, or bounces down from a round number..
phase 2: 'shortcuver pressure" : this is some kind of culmination point, in which road users make a decision, that 'they have enough" and begin to close positions.. as a rule, this causes a rapid upward movement. bouncers and other bottom catchers immediately join.. need steel balls, to sit out and not jerk to close at this moment.
phase 3: "gift opportunities" : I named this phase that way, because, what is the OPPORTUNITY! actually, the first vertex starts to be drawn, for which it would be logical to move the stop for the first time. and it is also the same point, where you need to make a responsible decision – добавить к позиции с риском потерять почти весь "бумажный" profit or get the chance to take even more.. что тут происходит? all alarmists and hasty shortcovers were successfully dropped off, below are the feet of the bottom catchers, which will give strength to the downward movement from the pullback.. this is what we need!
phase 4: 'almost perfect way out" : тоже думаю, that everything is clear. there are almost no ideal exits in life. but at this point it will be good to buy back shares from those, who else is trying to jump on the bandwagon and sell them.
conclusions:
— you need to be able to sit out a rather sharp rebound of the first closings of shorts and not ochkan
— aggressive and experienced get the opportunity to sell and add MORE
— according to my observations, the price will return to the point of phase 2 after a rollback with a probability 75%
— with probability 60% she will go even lower, then it is already possible to oppress the position with a close stop and move it as it sinks
here. no know-how in this, I do not pretend to be original.. these are my market observations and a fairly common scenario "on emotions".
