Recently, some friends are worried about a major correction and are starting to think about short selling.
1. First of all, the callback does not mean that you can go short. There is no logical correlation between them.
🤔Look at the pullback: Subjectively, we believe that the rising market may end here, and we can reduce our positions. We can hedge more aggressively, but it is definitely not the time to go short.
📉Short selling: Objectively speaking, the trend has reversed. Short selling actually follows the market rather than going against it.
Shorting on the left side is a very fatal behavior in the bull market. In 20 years, I have seen a huge Air Force chief go bankrupt and withdraw from the Internet after shorting 80 million US dollars. Today, many people may still think that Bitcoin is a historical scam. Fight it and empty it to zero.
There are more men doing business, but men always have an inexplicable desire to win and conquer. They think that their three melons and two dates can shake up this trillion-level market. I advise you to recognize the reality and your own status, and learn how to do it. Be a follower of the market and its slave.
2. There must be signs before a major correction
The trend of the market is the result of the combined force of the majority of people participating in the game. In such a huge and strong game market, if there is any change in the direction of the market, whether it is on-chain data or pure technical aspects, we can Found clues.
As shown in the two pictures below, they are the corrections before the halving in 2016 and 20 respectively. It is not difficult to find that if the correction is going to happen, in a strong game market, it will first go through a long-short fight and finally a large-scale one will appear. Structure then determines the outcome.
So don't rush to run away, let alone go short, just wait patiently for the results of the market game.
Learn to be a follower of the market and its slave.