I remembered the first time I shorted a stock. That was two months into my full time trading journey and funnily it was done out of frustration of not knowing how to short when I'm seeing red everywhere. I searched online for a while but it seems nobody was telling me how to go about shorting a stock so I just had to do it for myself.
I thought that ACCICB would be the first to short and then I can learn from him how to do it properly but it seems this time I was the garang one as I took a loss on the long position and shorted it instead since I can't hold both short and long positions in IB. The trade ended well and I took a small profit.
My only mistake was that when I closed my short position, I should have long the stock again as it went up. But being a first timer and not knowing what buttons to press to close the short position, I was fumbling but happy that it ended well.
That was the start of my shorting career and it seems to sit well on me since gravity is working for me rather than against me. ACCICB called me a gangster for becoming a short seller and I thought to myself that short selling has its place in the market because truth be told, nothing can go up forever.
It's like climbing up to the top of the mountain and once you reach the peak, you have to come down unless you plan on living up there which we know is plain impossible. In recent days, it seems that shorting sprees are growing and the only thing that can cause a stock to break out of the market is earnings day.
But then your earnings better be damn freaking fantastic before you can break out of the market downtrend and register a strong white candle which would probably only last a day or two before it gets swallowed up by the market again. This is what happens when the market is in gear when you see chart patterns all over the world repeating themselves in different markets.
Once the market is out of gear is the time where things start to get interesting and it seems that the market is trying to do that...whether it succeeds or not awaits to be seen.