Post
Topic
Board Speculation
Re: Shorted bitcoin
by
MatTheCat
on 25/10/2014, 10:47:40 UTC
Shorting is notoriously difficult to do. You might know the right trend, but If you mess up your timing you can still lose money.

Exactly that's the risk that is amplified to an extreme by trading on leverage. The vast majority of all traders loose money. It's not worth to risk capital and mental health in such a game.

Shorting Bitcoin is even riskier, because the market often moves unpredictably and extremely fast. The volatility is very high. Doing that leveraged is insane.

ya.ya.yo!

Yep.

Leveraged trading (or even just plain old trading) does very strange things to the mind. Just cos a person is generally pretty good at sensing which way the market is going to go when his capital is sitting on the sidelines, doesn't mean he is capable of being a good trader. It also just takes one of those vicious volatile swings to come right in out of knowhere, to decimate a trader's capital and then he is sitting staring at the charts, stung and numb, and desperately seeking revenge. It all goes down hill even more from that point and previous lucrative gains can soon turn into net losses. That is the nature of this game and trading volatile assets in general.