$No short selling! Whether or not you are right about the trend does not matter; even if you are right, it is still useless.
❌🈳Let's see what Buffett and Munger have to say:
Buffett: “Charlie and I are not strangers to short selling; both of us have failed at it.” Munger stated regarding short selling: “We don’t like to trade painfully for money.” (2013)
Charlie and I had thoughts of short selling on hundreds of stocks in the past, and if we had implemented them, we might have become broke. The evolution of bubbles is based on human nature; no one knows when it will burst or how much it will inflate before bursting. (2002)
❌🈳Now let’s take a look at Duan Yongping:
Netizen: May I ask what Mr. Duan's reason was for shorting Baidu at that time? What were his thoughts that led to this decision? What should we learn from it?
Duan Yongping: First of all, short selling is wrong. At that time, I did see some things wrong with Baidu; in fact, Baidu later dropped significantly because of it (if I could have shorted until that point, I could have made a lot of money), but I did overlook some important conditions that were favorable to Baidu, such as the policy environment. In summary, short selling is a speculative behavior, and I should not engage in it. (2010-09-14)
🧠Wanting to short sell indicates that subconsciously you want to speculate; if you fail, it's fine, but once you succeed, the result is that you become overly bold, lose respect for the market, and are likely to squander your previous achievements in one go. This is quite magical; how many geniuses have fallen for it...
(Do you think your rationality and self-control are stronger than Buffett and Munger, or even Duan Yongping, who all had their failures? Can you really control yourself?)