There are shorts and there are SHORTS ! - Part 1
Either you buy or you sell to make money from Mr Market.
Conceptually, you are right ! But hey, look closely at this chart and if you had shorted from 0.98 to current price of 0.84, you have made a profit of near 15% over three long years.
Fantastic ? Honestly, I doubt so any trader would pop champagne over such results....
Again, study the chart closely .. what do you see? That's right ! There is lots of volatility in between this period. Sell and hold strategy will make you lose more in a way.
You can overcome this in 2 ways :
1. Short from 14 Jun 18 and take your profits in Oct 18 (draw a trend line and you see it retraced)
Repeat this method for 21 Mar 19 to 10 Oct 19.
OR
2. The easier way - Find a less volatile pair to short.
See next update !
Conceptually, you are right ! But hey, look closely at this chart and if you had shorted from 0.98 to current price of 0.84, you have made a profit of near 15% over three long years.
Fantastic ? Honestly, I doubt so any trader would pop champagne over such results....
Again, study the chart closely .. what do you see? That's right ! There is lots of volatility in between this period. Sell and hold strategy will make you lose more in a way.
You can overcome this in 2 ways :
1. Short from 14 Jun 18 and take your profits in Oct 18 (draw a trend line and you see it retraced)
Repeat this method for 21 Mar 19 to 10 Oct 19.
OR
2. The easier way - Find a less volatile pair to short.
See next update !