Why is shorting harder than going long?
When the market is calm, most people will not go short.
You usually choose to go short when the volatility is large, especially when the market fluctuates at a high level. When you see some bad news, you start to go short.
The market trend pattern is from low volatility at a low level, slowly rising to a price to start medium volatility, and then there is a large fluctuation.
This is also the several stages of the bear market, the bear market, the beginning of the bull market, the middle of the bull market, and the top of the bull market.
The normal low volatility is 2-4% a day, the medium volatility is 4-10%. The high volatility is 10-30%. The extreme volatility is 30-100%.
So if a person goes long, he starts at the bottom, or in the middle, the pressure he bears is actually not bad.
When the market fluctuates more and more, then he actually has floating profits, and he uses floating profits to hold orders. If the market is not right, he can close the position at any time.
The mentality will be much better.
It is recommended that all novice friends should never 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 collected, and the funding rate can be used to kill you directly, and finally kill all your assets.
The steps of shorting are to open a position at a high point in the market, when the volatility may be 10-100%.
During this period, the market is extremely fierce, up and down. If you open a short position with a stop loss, you may be closed many times, resulting in real losses.
You are a 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 at a 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.
I am not a professional trader. I suggest you only hold spot. In fact, holding spot means going long, which is equivalent to going long without leverage.
