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jmanatVT

Joined: 01/17/2008 Posts: 6583
Likes: 1850


The thing that Marvin and Citron are being retaught is that shorting


requires timing, too. When you take a long position the only cost, even in a storm, is opportunity. When you take a short position not only are you paying interest while you wait for your bet to come true, but you also can run out of collateral and therefore have your loan called in at a loss regardless of what it does in the future.

So while you are 99.9% right that the price will drop, you have to know that 1) you can weather the storm 2) the cost along the way won't eat away your profit.

(In response to this post by hoosnowahokie)

Posted: 01/27/2021 at 09:09AM



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