Friday 7 August 2015

Never Short Stocks on the Rise

Shorting can be a profitable approach to making money in the market.  However, shorting a stock on the rise  is a sure way to increase one’s blood pressure. One can never predict  how a stock is going to behave, as you all know it depends on N no of factors.

The desire to identify the market tops and bottoms is one  of the unhealthiest traits one can find in a trader.  There have been traders who beat themselves up trying to calculate the exact peak, only followed by  the utter disbelief that follows when the stock does the exact reversal.

It is quite possible, if one short a stock on the rise and it backfires ( which is quite likely), than it could possible trickle the end of the Share Market Journey, as the person will find it difficult to gather courage to enter in to the Market again.

Remember, Market will continue to do, what it plans to do. One's greatest chances in succeeding in Share Market do not come from trying  to outsmart the market, but rather then riding with the tide.

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