“Master of Disaster” – Overcoming Shorting Phobias
Ok ok. Just because a stock goes down it’s not a disaster. Stocks go up and down due to supply and demand.
Actually stocks go up and down due to a lot of factors. Most notably, to the chagrin of the media who tries to attach a story to everything (hey why not right? The markets are more fun that way) price action rules drive most of the up and down swings and trends of price in a stock, in the marketplace.
Now it’s true the underlying story gives meaning and price behavior character to a stock’s existence. And a shift in the story of a stock can change the character of the stock and re-frame price action. But price action rules still govern where the trend starts, where the trend ends, where the swing starts, and where the swing ends. You want to become very proficient and entering and exiting exactly when these swings and trends start. If you do, you can potentially become a very successful stock trader.
But if you’re looking for consistent and superior returns over time you’ll simply need to get rid of this phobia of shorting created way back when. We’ll help you do that by helping you get out of the old school mentality of “Shorting is Un-American” into a more practical mentality.
Why did or do people still say “Shorting is Un-American”? Well back before the technological boom in online trading and computer managed trading exchanges shorting stocks was a big issue. Now a days buying, selling, selling short is simply trading. And because most traders and “investors” who trade by feel in addition to the explosion of numbers of people who are systematically trading you have people entering and exiting stocks all over the place for all sorts of different reasons all of the time! Plus trading is now regulated by computers, computers that can do things we humans couldn’t.
Speaking of systematic trading, strategic trading too – did you know that there are HUNDREDS of different ways to trade a stock? I mean you have breakouts, support & resistance, Fibonacci breaks and bounces, day bars swings, trends and pops, intraday bars micro swings, trends and pops, day trading swings, trends, pops, scalps,,, You can trade different time frames such as a swing verses a power trend verses a medium term trend verses an long term trend. Oscillator traders will have a different parameter of entry and exit. There are umpteen different ways to trade a price swing. You can fade trade, channel trade, chart pattern trade… And there are many different types of chart patterns to trade… Anyways, the point is, it’s cool, it’s ok to short a stock!
I would say it’s now totally American to short a stock! We’re not talking about “investing” in a company’s demise. We’re talking about trading! Trading price action. Getting in and out of a stock at specific prices on purpose. And due to technology and the vast amounts of traders, systematic traders, most activity in the markets is not about investing it’s about trading! Trading is entrepreneurial! It is capitalistic! Trying to curb the markets by saying shorting is “Un-American” these days is socialistic, trying to control the markets for someone else’s benefits. Capitalism – the people benefit and the people are free. Socialism – they say the people benefit but that’s their line for enslaving the masses to gather the wealth for the few (although they will tell you the opposite). So if you’re a trader you’re providing liquidity to the markets. You’re helping everyone. And with so many trading ideas out there, so many ways to trade, when one person is shorting another is buying most of the time.
When a stock goes down it also creates buying opportunities for others. Whats overvalued to some maybe undervalued to others and viceversa. So let’s throw off our fears and phobias about shorting and empower ourselves to become better traders. Obtain this course to get started filling this gap in your trading.
- Learn how to rid of an emotional association bottlenecks to shorting a stock
- Find out how to get out of the entrapping realm of emotional trading
- Discover what it’s like to be strategic or better yet, systematic in your stock trading.
- See tremendous opportunities to ride the market up and down.
- Discover how you can now relax, breath more easy knowing that potential superior returns, compounded year after year can now be yours by learning how to systematically buy, sell AND short
- Learn more about the process and parameters of being able to short the stocks you trade.