As you know, when you are bullish, you go long.
And when you’re bearish, you short.
Many of you have noticed that my bullish sentiment has quieted down a bit. It may even appear that I have become bearish in the crypto space. Short-term, maybe a bit bearish. Longer-term? Not yet.
So, why have I not taken any short trades during this drawback?
Well, the answer is actually threefold: 1) I don’t actually know how long this drawback will last. I have an idea. Yes. But, as with any analysis, these are just best guesses at this point. 2) You all know that for whatever reason, Coinbase has locked down my trading account. They won’t tell me why but I think I may have an idea - more on that another time. This means that I cannot transfer crypto out to an exchange that offers shorting opportunities even if I wanted to. But do I really want to? Not really. And this brings me to my last reason. 3) I just don’t have enough bearish conviction at this point to short the market. To go long, you must have conviction that your investment will pay dividends. To go short, you must have conviction that the bears are in complete control and you will be able to complete your trade at a lower price. I just don’t have that kind of conviction. …Yet (this could change).
At this point, I am simply undecided with a slight bearish sentiment. This is not enough for me to short this market. Again, my sentiment would become more bearish especially if we drop below that black ascending trendline I continue to reference in my updates. But even then, my current trading portfolio is restricted. Therefore, under my circumstances and with my lackluster bearish conviction, it does not make sense to short. At this point, I would rather simply offload into stable coins if I become more bearish and then look to re-enter at the lowest price possible.
These are mainly the reasons my paid subs have not seen any short trading from me.
Hope this helps you to understand my current perspective a bit.
Take care traders,