Why is shorting more difficult than going long?
The market trend starts from low volatility, slowly rises to a price, then starts medium volatility, and then there are large fluctuations.
This is also the stage of bear market, exit from bear market, bull market, bull market, bull market, and bull market.
Normal low volatility is 2-4% a day, medium volatility is 4-10%. High volatility is 10-30%. Extreme volatility is 30-100%.
So if a person goes long, he starts at the bottom, or starts in the middle, the pressure he bears is actually not bad.
When the market volatility becomes larger and larger, then he actually has floating profit, and he uses floating profit to hold orders. If the market is not right, he can close the position at any time.
The mentality will be much better.
I suggest all novice friends not to go short. The winning rate of shorting is naturally lower than that of going long, especially shorting junk coins with a single position.
This kind of chips can be easily aggregated, and the funding rate can be used to kill you directly, and finally kill all your assets.
The steps of shorting, open a position at a high market, and the volatility may be 10-100% at that time.
During this period, the market was extremely fierce, up and down. If you open a short position with a stop loss, you may be closed multiple times, resulting in real losses.
You are part of the market and will be affected by market sentiment.
If you hold the order, the market may continue to pull up. Friends who have been blown up by short orders should have experienced this feeling.
The difficulty of making money by opening a short position is very high from the beginning, and the market is turning from high volatility to low volatility.
This process can convince a large number of people.
If you dare to open a short position with low volatility from the beginning, you will lose more miserably.
When you encounter a big rise and the market improves, it is basically over.
Making money by going long is from simple to easy, and making money by going short is from difficult to simple.
In this market, whether you are a novice or a veteran, following me will not only gain financial benefits, but also grow in investment knowledge and experience. If you don’t want to pay for this market and want to learn more about this industry, please pay attention to the industry.