When it comes to trading and investing markets, I’ll tell you a secret. The most important piece of data you’ll ever hear about it.
As traders we go long and short. But markets, and the instruments that compose them i.e. stocks and ETFs, trade Long 90% of the time. (Meaning Calls) Because institutions, who do 99% of the investing in markets, always go long, i.e. they are always buying. Not selling or shorting. (Puts)
Think about it: young people go to their local institution and say we’d like to invest our small savings. Meaning BUY. Meaning LONG. Meaning Calls. They don’t go in and say we’d like to take our small savings and go short. Hah! So shorting is a precise skill. Because it can only succeed a mere 10% or less of the time in terms of general markets and their activities.
Of course one can become an expert in shorting (Puts) looking for opportunities to only short (puts) markets and stocks and ETFS. And they can do just as well. But this involves precision and daily attention and activity. Because markets traditionally and in general are always going up.
More later.
