“Hey Lou why did the market rally so hard into the close!?”
My general feeling is:
because it’s Friday, there are a ton of unknown covid19 data points coming out during the next two days before Asia opens Sunday night, and everybody wants to:
My general feeling is:
because it’s Friday, there are a ton of unknown covid19 data points coming out during the next two days before Asia opens Sunday night, and everybody wants to:
GIF translation: everyone wants to: Take their shorts off!
Short positions are inherently riskier than long positions. Why? In plain language: Because if you buy a stock at $10 and the world goes to shit, all you lose is $10. Your downside is 100% of what you put in.
Whereas...
Short positions are inherently riskier than long positions. Why? In plain language: Because if you buy a stock at $10 and the world goes to shit, all you lose is $10. Your downside is 100% of what you put in.
Whereas...
...If you short sell a stock for $10 and all goes gangbusters for that stock, the stock could go to $1,000,000 and now you’re out $999,990. Your downside is basically infinity.
That’s super simplified but it’s a reason some traders don’t like to keep shorts on over the weekend.
That’s super simplified but it’s a reason some traders don’t like to keep shorts on over the weekend.
In my experience, in times of fear, markets are 90% psychology and 10% fundamentals.
Smoochie booches and remember: if you have a long investment time horizon, compounding is more important than market timing. Keep socking money away into retirement savings if you can.
