short vs buy

0% shorted
100% bought

You don't short sell in a portfolio.

Shorting is a meme, never short a stock

>>1461712
It's not a strict percentage, and I'm assuming use of the word "portfolio" to designate your market holdings.
When conditions tend more toward bear, your short allocation should be higher, the reverse during bull tendencies.
Of the 8 equities I'm holding currently, 2 are shorts. However, monetary percentage is at less than 10% of total value.

>>1461713
youre saying under no circumstances you should short?

>>1461712

Shorting is basically gambling. Unless you have some heads-up inside info or are SO wealthy that you can manipulate markets (soros levels or politician), you're just gambling. Gambling with a near unlimited loss potential.
If you were in politics, you would be better off trading options anyway.

Shorting is a meme like winning the lotto.

>>1461752
unless there is some kind of a bubble you see coming. such as 2000 tech bubble or 2008 housing bubble. then shorting is useful

>>1461752
>Unless you have some heads-up inside info or are SO wealthy that you can manipulate markets (soros levels or politician), you're just gambling
About the dumbest thing I've read all day.
Stocks move in downward trends as well as upward.
If you can't see that trading both sides is more advantageous to your holdings than trading just one, then you're just missing out.
There's no nobility left in taking it in the ass during bear markets.

>>1461752

>Gambling with a near unlimited loss potential.

What is a stop loss, retard.

>>1461754

Many people recognized that the market was in a bubble, but they fucked up their timing. Keep in mind that the S&P 500 went up 30% in 2005-2007. If you had leverage on a short trade in say 2006, you'd get wiped the fuck out before the market could crash.

>>1461745
Look I understand that there are margin calls and that the real world isn't necessarily terrible math.

But.

With a hold, you have the potential to lose 100% of your investment, and you have infinite possible gains. A penny can grow into a million bucks. Or, you might throw away a penny.

Your gains can be cashed in any time you feel like it. You can sit on losses, they don't cost you anything other than the money you already paid. And who knows maybe sitting on a loss can bounce back later.

With a short, you have the potential to gain 100% of what a stock is worth at the time you shorted, and infinite losses. A penny could become a billion dollar debt. Or, you might get a penny.

Just seems like kind of a dangerous game to play.

That said, some investors like to hedge their investments. They win regardless of whether the stock goes up or down. There's a lot of talk about math.

>>1461773
>With a hold, you have the potential to lose 100% of your investment
Correct.
Let's say it was your nest egg, formerly worth 1.8 million. But you made some gains through the years (now lost).

>With a short, you have the potential to gain 100% of what a stock is worth at the time you shorted
Also correct.
Let's say you shorted a block of Valeant at $260, and now it's $30. $230K is a sizable egg in and of itself. But Valeant rose substantially before it cratered (didn't matter).

It's all about how you present each side.

>>1461754
>>1461760
>>1461767

All these hindsight traders.

>>1461831
>hindsight traders
Not a trader.
But thanks for the compliment.

The real question is call or put on NVDA. Or both? Short term call and long term put?

Don't directly short, buy options if you believe stock x is going to go down.

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>>1462153
you mean sell options short???/