Are there money to be made in Shorting ?
The answer is a resounding YES !!!!
Like many traders, I learnt to buy stocks, commodities, forex, etc. You hear lunchtime talk like :
I am buying Apple today ! I am long on Tencent with a SL of xxx!
There are lesser people telling you about shorts or selling. I did not realise it requires a mental shift years back when I was attempting my first short. Psychologically, it was harder to accept now that we have to reverse the principle of "buy low sell high" to "Sell high buy low".
So, in this Palladium case, it is now at high. Of course, it can go even higher (go check out the monthly chart and you cannot find a preceding higher point than current price level). Such parabolic moves are great shorting opportunity , think cryptocurrency, how fast it goes up and down it falls in 90 degrees angle.
I reckon this will not be the case of Palladium as it's industrial use is still very much relevant in today's market. Though there are talks of Platinum acting as substitute but automakers are slow to make that change. Until that day, Palladium might correct and goes sideway but it is unlikely to have a heavy fall , in my opinion.
So watch out for the price level between 2150 - 2175 where I expect the action to come , i.e. breakdown from the ascending wedge pattern. Notice I draw a dotted line showing the possibility of it breaking higher. If it does, then wait for 2275 level and study the price patterns closely.
For new traders, please use a demo account to practise but train your mind to feel the profits or losses is REAL. But just because it is a demo account, do not put in a huge position size just to inflate your ego, that would be meaningless. Whether the result is a 5 figure profits or loss, it does not affect you since the capital was easily provided. Use the same amount as you would in your real account except this is for practice.
You need to get really comfortable and know the mechanics of sell high buy low, training your eyes to spot the trade opportunity and manage your risk accordingly.
There are money to be made in shorting, really. Go do your homework. Trade safely.
Like many traders, I learnt to buy stocks, commodities, forex, etc. You hear lunchtime talk like :
I am buying Apple today ! I am long on Tencent with a SL of xxx!
There are lesser people telling you about shorts or selling. I did not realise it requires a mental shift years back when I was attempting my first short. Psychologically, it was harder to accept now that we have to reverse the principle of "buy low sell high" to "Sell high buy low".
So, in this Palladium case, it is now at high. Of course, it can go even higher (go check out the monthly chart and you cannot find a preceding higher point than current price level). Such parabolic moves are great shorting opportunity , think cryptocurrency, how fast it goes up and down it falls in 90 degrees angle.
I reckon this will not be the case of Palladium as it's industrial use is still very much relevant in today's market. Though there are talks of Platinum acting as substitute but automakers are slow to make that change. Until that day, Palladium might correct and goes sideway but it is unlikely to have a heavy fall , in my opinion.
So watch out for the price level between 2150 - 2175 where I expect the action to come , i.e. breakdown from the ascending wedge pattern. Notice I draw a dotted line showing the possibility of it breaking higher. If it does, then wait for 2275 level and study the price patterns closely.
For new traders, please use a demo account to practise but train your mind to feel the profits or losses is REAL. But just because it is a demo account, do not put in a huge position size just to inflate your ego, that would be meaningless. Whether the result is a 5 figure profits or loss, it does not affect you since the capital was easily provided. Use the same amount as you would in your real account except this is for practice.
You need to get really comfortable and know the mechanics of sell high buy low, training your eyes to spot the trade opportunity and manage your risk accordingly.
There are money to be made in shorting, really. Go do your homework. Trade safely.
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