Ouch, that must really smart. I admire your candour.
Do you follow John Hempton? He's done a number of podcasts over the years and his fund's LP letters are publicly available. I learned a lot about the dark side from listening to John. What I think is the #1 killer from shorting is that when a position goes against you, your position size increases, which is the opposite of a long position. That is so hard to manage. If you are trading liquid US names, then IMO you should always consider put spreads over shorting the common: leverage with loss capped at 100% and greatly reduced vol.
I think a pre-determined stop is the solution. I could not manually stop myself out when the short went against me. Instead I compounded my error by increasing my short as the position went against me. I also didnt cut losses early and let it become personal and emotional where I could not longer trade rationally. Put spreads seem the other solution to minimise risk.
Ouch, that must really smart. I admire your candour.
Do you follow John Hempton? He's done a number of podcasts over the years and his fund's LP letters are publicly available. I learned a lot about the dark side from listening to John. What I think is the #1 killer from shorting is that when a position goes against you, your position size increases, which is the opposite of a long position. That is so hard to manage. If you are trading liquid US names, then IMO you should always consider put spreads over shorting the common: leverage with loss capped at 100% and greatly reduced vol.
Hi...I am interested to know what is your Sibanye BUY thesis? Thank you, Conrad
Hi, what are your BUY thesis for Mongolian Mining and South Gobi Resources? Thank you. Filip
holy christ
I think a pre-determined stop is the solution. I could not manually stop myself out when the short went against me. Instead I compounded my error by increasing my short as the position went against me. I also didnt cut losses early and let it become personal and emotional where I could not longer trade rationally. Put spreads seem the other solution to minimise risk.