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Don't long in a bear market, and don't short in a bull market.
Learning this will greatly reduce the probability of your account being wiped out and your money going to zero.
Bear markets can also see upward trends, and bull markets can also see sharp declines.
But generally speaking, bear markets tend to see larger drops, while bull markets tend to see larger gains.
But the magnitudes are different.
In a bear market, the decline is much greater than the rise, while in a bull market, the rise is much greater than the fall.
The magnitude of market fluctuations is a major factor leading to margin calls and account blowouts.
Most people don't know how to cut their losses; they just stubbornly hold on to a losing position. In such a situation, the safest option is the one with the smaller price swings.
Avoiding short in a bull market and long in a bear market significantly reduces the chance of being liquidated. 😄😄😄
Hairless
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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