The recent rise in Bitcoin's price has many traders contemplating shorting the market, but going short is a game with a steeply decreasing winning rate over time. Although shorting can bring a lot of money depending on the market, it is disadvantageous because almost all asset markets have historically been upward. Even in the crypto market, especially with altcoins, the trend has been upward when the market heats up.
Shorting also carries the risk of unlimited losses, which can lead to liquidation even with a small position. It is crucial to always think about and prepare for all possibilities before entering a short position. If you take a short position, you need to decide on the price and hang a cut line to minimize your risk.
As a trader, I have found that I earn more by going long than short. I rarely go into a short position, and when I do, I hang the stop-loss right away, hold it for up to 1 to 3 minutes, and sell it right away. Unlike long positions, which are more aggressive, short positions are always approached conservatively.
The saying "You can print money by pressing the short button" is popular in bear markets, but this mentality can lead to overconfidence and significant losses in the long run. When you take a short position, you need to think about it carefully and consider all possibilities.
In conclusion, shorting in the crypto futures market is a risky game that requires a lot of thought and preparation. If you must take a short position, always hang a cut line to minimize your risk. As a trader, it is essential to develop the ability to consider all possibilities and prepare accordingly, rather than seeing only one possibility for instantaneous revenue.
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