During calm market times, most people will not short.
You usually choose to short when the volatility is high, especially at high prices. When you see bad news, you start to short.
The market trend patterns start from low volatility at low levels, gradually rising to a price where it begins to have medium volatility, and then large volatility occurs.
This is also the bear market, going through the stages of exiting the bear market, early bull, mid bull, and bull peak.
Normal low volatility is 2-4% per day, medium volatility is 4-10%, high volatility is 10-30%, and extreme volatility is 30-100%.
So if a person goes long, starting at the bottom or midway, the pressure they endure is actually manageable.
When market volatility increases, you actually have floating profits, and you are holding positions with those profits, so you can close your position anytime if the market isn't favorable.
Your mindset will be much better.
I advise all novice friends to never short; the winning rate of shorting is inherently lower than going long, especially when shorting low-quality coins with a single position.
This type of capital is easily gathered; directly using funding rates can exhaust you, ultimately leading to the total liquidation of all your assets.
The steps for shorting, opening a position at a high market price, when the volatility may be 10-100%.
During this period, the market is extremely intense, fluctuating up and down. If you short with a stop loss, you may be liquidated multiple times, causing real losses.
You are part of the market and will inevitably be influenced by market sentiment.
If you hold onto a position, the market may continue to push upwards. Those who have been wrecked by shorting should be familiar with this feeling.
The difficulty of making money by shorting is very high from the beginning, as the market transitions from high volatility to low volatility.
This process can conquer a large number of people.
If you dare to open a short position from the very beginning of low volatility, you will suffer even more.
When encountering a significant rise and market improvement, it is basically over.
Making money by going long is from simple to easy, while making money by shorting is from difficult to simple.
If you are not a professional trader, it is recommended that everyone only holds spot; in fact, holding spot is equivalent to going long. It's essentially going long without leverage.
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