cryptofamily

👆 «Never short a boring market»

This saying means that during periods of low volatility and apparent calm, the market often accumulates strength for a sharp upward movement.

If a trader opens a short position (shorts) in this state, he risks getting into a sharp increase (short squeeze), when a sudden increase in price forces shortists to urgently close positions, which further accelerates the market upwards.

Simply put, a market that looks «boring» and inactive often leads to unexpected growth, and it is dangerous to short it.