A new generation of bag holders in the making.

Whoever is preaching shorting is bad simply does not understand market dynamics. You short to hedge an inflated asset.

Once you understand this, you'll come to see the market as it is: a market.

A thread👇

[1]
Let's say take #bitcoin as an example. You own 1 #BTC .

Bitcoin surges to 100K while you bought at 10K, that's a x10 ROI so far if materialized.

In the next months, you expect we correct to 50K, which's 50% from the current value.

[2]
You open a short equivalent to 1 BTC (1:1) at 100K. Bitcoin starts declining and temporarily reverses the trend down to 50K. That's a 50% correction.

Now while you might not have materialized the profit on your coin, what you did was balance your overall portfolio.

[3]
Maintaining your portfolio balance and your profitability ratio allows you to bring into equilibrium your investment portfolio while avoiding deflation of the asset.

Once you understand this, you'll understand that taking an extreme stance in the market is detrimental.

[4]
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