why short always move faster than long? I saw that but I don't know why.
Hi billye.
I don't know for sure. Maybe we're programmed for long only, its all good when its going up. Even if you're in a short it just doesn't feel as rewarding as a long. (just a thought). It may be that it doesn't need too much thinking about. It just happens , so it is! We have become used to things always increasing over time such as the price of shares etc all should go up we are told. Therefore when long positions are held longer than they should be for safety the rush to offload them is much greater than normal, hence the huge selloffs twice the speed of longs. I personally think that a new low has to be tested a couple of times or more before being broken, creating double and triple bottoms. The resulting longs from these can be quite drawn out and then sharp pullbacks to test the low again. The push up to test a new high on the otherhand usually comes straight back down off a big number creating a fast short.
I personally think that we all trade how we live our lives. Think about how long it takes to climb a triple ladder and the effort involved to get to the top. very safely done with steady progress.
Now imagine if you're at the top of this ladder and one little thing goes wrong. You drop your hammer and try to catch it. You fall straight down (no angle of ascent/descent here and hit the floor. Thats your bottom in double quick time. No fibonacci or elliott waves, the charts mimic life in my opinion. keeping it that simple has stopped me worrying why these sorts of things happen and concentrate on how I react when that hammer gets dropped. It happens on all time frames all the time. There is perhaps a crowd mentality thing as well. We will all rush out the door to see a train wreck/other bad thing, whereas we don't all do the same just to watch the train go past as usual, so once one starts to sell they all do.
andy
Hi billye.
I don't know for sure. Maybe we're programmed for long only, its all good when its going up. Even if you're in a short it just doesn't feel as rewarding as a long. (just a thought). It may be that it doesn't need too much thinking about. It just happens , so it is! We have become used to things always increasing over time such as the price of shares etc all should go up we are told. Therefore when long positions are held longer than they should be for safety the rush to offload them is much greater than normal, hence the huge selloffs twice the speed of longs. I personally think that a new low has to be tested a couple of times or more before being broken, creating double and triple bottoms. The resulting longs from these can be quite drawn out and then sharp pullbacks to test the low again. The push up to test a new high on the otherhand usually comes straight back down off a big number creating a fast short.
I personally think that we all trade how we live our lives. Think about how long it takes to climb a triple ladder and the effort involved to get to the top. very safely done with steady progress.
Now imagine if you're at the top of this ladder and one little thing goes wrong. You drop your hammer and try to catch it. You fall straight down (no angle of ascent/descent here and hit the floor. Thats your bottom in double quick time. No fibonacci or elliott waves, the charts mimic life in my opinion. keeping it that simple has stopped me worrying why these sorts of things happen and concentrate on how I react when that hammer gets dropped. It happens on all time frames all the time. There is perhaps a crowd mentality thing as well. We will all rush out the door to see a train wreck/other bad thing, whereas we don't all do the same just to watch the train go past as usual, so once one starts to sell they all do.
andy
That is great.
