Extreme Deviation Automatic Price Targeting - "X_DEV" - Bitcoin

[lostcowboy]

Sometimes it can be, but it is always risky. You normally have to make a decision on very little data,and you have to make it very fast. A short by its self has the potential of a unlimited loss. If I was to do a short, I would find a way to limit my loss. I think if I was just starting out ( and I would be if I tried it) I would set up a hedge by buying call options. That way I would know exactly what my losses would be. Here is a chart of a short play. You can see that by the time you notice that the stock is moving out of its price range it is moving very fast. So you don't have a lot of time to set up the short. You don't have time to find out why it is dropping, you just have to react.