Post
Topic
Board Trading Discussion
Re: Making a x10 or x100 by short selling
by
justdimin
on 13/07/2023, 12:15:54 UTC
No one considered that the most you can profit from a short position is 1x of the amount you used for short selling.

To illustrate, if the trader has $1,000 in his account and wanted to use 10x leverage - $10,000 - to short something priced at $100, then the highest amount the trader could take profit is $10,000 IF the coin crashed to zero. The only reason why there's a potential to profit 10x of the original capital is because of leverage, NOT because there's an exponential return.
The OP said that it might be easier to make 10x shorting. well, I think he really hasn't gotten into trading yet. Even when we get 2x profits when short, it is a very good thing. it's not as easy as the OP said. in fact, it takes persistence for it, it's not even easy to get 2x when going short. In addition, many people who target short, get stuck and end up holding on long term because the price of the coin they are buying has dropped drastically. Imagine making $10k, with $1k in a short amount of time. well, I think if it was that easy, nowadays people tend to prefer trading over investing.
That's true, nobody that knows crypto would think that it's simple, it's one of the hardest things ever and only a fool would think that it would make sense. I believe that it's not going to be easy at all and we shouldn't really be worried about it neither. Life is not that simple and it's going to cause a lot of people to make mistakes because of it.

People may not believe the same things you believe in, but that doesn't mean that we should respect every single opinion, like this one that doesn't make sense. Shorting is very hard and if you do a x10 shorting that means you can't be wrong too much, if it goes even just a bit higher, then you are going to lose all your money. I hope that it gets easier but shorting will never be easy.