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RE: Cryptocurrency Trading Tips from Francis Hunt
Thank you; I sold my litecoin and missed the big dip last weekend to re- buy so this post hits home! One question; can you explain "shorting the market"
Happy to clear this term up. It's possible to have a few meanings for this term. Traditionally it means to borrow shares that aren't yours, sell them and then buy them back lower (you get to keep the profit). It can also be referring to selling shares / tokens / crypto as opposed to buying and holding. When you buy a stock or crypto they refer to it as 'going long' meaning you intend to hold it and you expect it to go up (however, you may have a price you would like to sell it for in mind before buying it which can be a wise idea). Animal terms are also used in trading. Bulls are known for buying and bears are known for selling. In a bear market traders and investors keep selling until the market agrees that the correction is finished, then comes the bounce (a quick return to a higher price) and after that consolidation (people buy shares or tokens thinking that they are buying them at fair value) and if lucky after that stage will come the bull run (a quick increase in price and strong buying pressure). Hope this helps you understand the traders more when they talk about this! Take care.
Thanks; I definitely won't be shorting the market then; my instincts do not serve me well lol