11 Comments
User's avatar
Lucas's avatar

Another masterpiece of article.

Dhruv Nigam's avatar

Great read. Well written. Thanks for this.

Raj's avatar

In the The Bear Cave example above numbers were quoted wrongly. There were quoted from overall row not from bear cave rows. Happened to notice so the author corrects this… other than that great work!! Love ur work

Serhat Yildiz's avatar

It is quite insightful! Thank you. I believe the main reason of unpopularity of short selling is less accessible to retail investors, specifically to small investments. For example; today any American with 20$ can open an account on Robinhood and easily buy stocks even cryptos for as low as 0$ fee but shorting is not available in these services. So people have less knowledge about that.

Btw, I just realized that there is a great business potential here. if i'm not missing some points. Especially during long period of bear market is a great time to start :) If i'm missing a point or anybody wants to collaborate let me know! Name of the project could be "ShortRobin" :)

Market Sentiment's avatar

Haha. Sure thing Serhat. Drop me a note of your idea at

marketsentiment.live@gmail.com

Serhat Yildiz's avatar

Haha thanks for being open. I'm sure you already knew all these but I actually talked about it a friend who is a hedge fund manager. Very briefly; because the nature of shorting, it would require always a financial institute to land you the securities :) so it doesn't seem as easy as a Robinhood service but was a good thought process.

Gregg's avatar

just a technical note: in an article on short selling, targeted at beginners who need to know what short selling is, you mention the volatility of put options out of nowhere. Although puts are indeed a method of shorting, that sentence seems out of place.

Market Sentiment's avatar

Thanks for the feedback Gregg. I had linked a detailed article to that section but I agree it could have done a better explanation!

Shazrin's avatar

Interesting to know that short sellers use fundamentals as their basis

Ol's avatar

No reputable company uses technical analysis for their trades