It's generally difficult to do. The problem is you have no idea when the collapse in value will happen, or even if it will.
A lot of the companies I'd have bet against in the past, like AOL, sold for huge sums of money, and the purchasing company ended up regretting their decision. The actual AOL stock never collapsed.
Often the difficult thing isn't predicting "this bubble will collapse eventually"; it's predicting the _date_ of the collapse. You really need both, to short.
As for the GME thing, the only reason why I sort give it a pass is because it was sort of an unprecedented thing. I am not sure if regulations have been updated to address a future similar incident.
At least it resulted in the "This Is Financial Advice" video from Folding Ideas.
Fascinating watch after following the event back in the day - and losing €1500 because I didn't reach my goal of earning €500 to buy a PS5 with the profit. If shit went up for just one more day I would have reached my goal.
It's generally difficult to do. The problem is you have no idea when the collapse in value will happen, or even if it will.
A lot of the companies I'd have bet against in the past, like AOL, sold for huge sums of money, and the purchasing company ended up regretting their decision. The actual AOL stock never collapsed.
“Markets can remain irrational longer than you can remain solvent.” - John Maynard Keynes
Enron was going up for years and years before the fraud could not be hidden anymore.
A short Tesla position is correct. The question is at what expiration date ?
When it peaks like the beginning of this month or late last year, I prefer to write naked calls. (Don't try this at home.)
Why would shorting TSLA make him lots of money if he is correct?
If he's correct, the fraud is working. He hasn't staked out a position on what might stop it and when.
The market can remain fraudulent longer than you can stay solvent.
Often the difficult thing isn't predicting "this bubble will collapse eventually"; it's predicting the _date_ of the collapse. You really need both, to short.
This is always a shit argument.
Timing the market is incredibly hard. Investors can be extremely irrational.
Haven't we learned anything with the GameStop bullshit from a few years ago?
You're forgetting the bottomless human trait of "That won't happen to me", that remains right up to where it happens to them.
As far as GME, if the SEC worked, then GME would have never been a thing.
I agree.
As for the GME thing, the only reason why I sort give it a pass is because it was sort of an unprecedented thing. I am not sure if regulations have been updated to address a future similar incident.
At least it resulted in the "This Is Financial Advice" video from Folding Ideas.
Fascinating watch after following the event back in the day - and losing €1500 because I didn't reach my goal of earning €500 to buy a PS5 with the profit. If shit went up for just one more day I would have reached my goal.
Was a lesson to never try timing anything.
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