Jumat, 18 Maret 2011

overcoming fear of shorting

my friend

madhu

shared with me his

discomfort with shorting!

--

i had heard this dilemma

numerous times before

besides experiencing it myself!

--

because of sheer habit

everyone is used to

only buying

and not selling!

you might have bought

100000 things in your lifetime

and sold only a few!

so selling, obviously,

is out of your comfort zone!

so,

when i heard him utter those words

it was natural

that something in me

wanted to help!

--

given below are two tricks

that i shared with him

which should help

rather anyone

to strike peace

with shorting!

--

1) trade in options -

that way

you need to only buy

even when

you think the price is going to go down!

when bullish, buy call option

when bearish, buy put option!

(see, no selling)

--

2) turn the vertical graph by 90 degrees

to horizontal!

this way

there is no up and down

only

left or right!

so, there is no pschological fear of shorting!

--

here is a bonus method

which didn't strike me

when i was talking to madhu!


i recalled this

when i was pondering later

as to how i had managed to overcome

my fear of shorting!


i overcame my fear of

going short

by learning the indicators

deep and thorough!


broad movement of the market

is logic

not magic!


when the markets fall

they are not going nuts!

they are just flowing

like the river

trying to find further path of movement!


light

of technical knowledge

just dispels

the dark shadows

of fear of shorting!

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