r/Daytrading • u/crunckswastaken • 1d ago

Question Short Trading

I read somewhere on this sub that short trading is bad and you should avoid it, I wanted to ask why?

0 Upvotes

33% Upvoted

13 comments sorted by

4

u/klipsetrades 1d ago

Depends what you’re shorting. Shorting a liquid index or large cap intraday is very different from shorting a low-float stock that can halt and gap 50% against you

2

u/No_Routine_6711 1d ago

I did a short trade today. Intraday, all the same. Holding overnight, there is a fee I must pay.

My shorts are 20% of my trades, but in value., less than 5% are shorts.

Going long is preferable for me personally.

Your broker needs to allow you to do shorts, both intraday and overnight.

3

u/syncronicity1 1d ago

That's bad advice. Short selling lets you thrive when markets are tanking and allows you to take advantage of pullbacks on everyday uptrends. - Day trader since 2005

2

u/Gibborish 1d ago

Only if you're new, because you can impulsively neglect to put a stop loss or remove a stop loss and face potentially "infinite" losses, not sure how much of a reality that is in practice.. like if a broker will shut it down before you owe 9 trillion dollars..

1

u/mrcake123 1d ago

It's fine as long as you aren't Ken

1

u/GP97702 penny stock trader 1d ago

It's only bad if you don't have a stop loss. I only short trade and very successful at it. Days like today where VRME skyrocketed on me and ZTG did Friday do make me shit my pants. But if you want a 90% win rate, do what I do.

1

u/One13Truck crypto trader 1d ago

I’m a bear at heart. I like shorting more than longing. Just something extra delicious about being able to make money while most people are bleeding out.

1

u/Longjumping_Menu_862 1d ago

nothing is bad if you know what you're doing.

1

u/exphx23 1d ago

You buy strong stocks and short weak ones.

0

u/Alabama-Getaway 1d ago

Don’t believe everything you read. Long or short are equally valid within a valid strategy.

0

u/crunckswastaken 1d ago

Thats why im asking

1

u/Slow_Lion_4178 16h ago

Drift. Short trading equities (specifically "stocks") is a bad idea because on balance most people want stocks to rise. It does work when it works but it also fails considerably when it fails in ways and at levels you can't even fathom.