I'd be curious to hear about some of the differences people apply in their approach when taking short positions vs taking long positions.
The old adage of 'up by the stairs and down by the elevator' means that timing is quite important for short strategies - but at the same time the potential profit from picking a correct move can be quite significant. I'm not sure how it works with CFD's having not traded them but with the other derivatives and with naked shorting it is not easy to get liquidity for a 'long term' short position - i.e. most people are trading within a couple of months out maximum and thus that is where the liquidity is. Also the cost of taking a position that goes sideways is fairly expensive vs sitting on a long term long position.
So the purpose of the thread is for people to discuss how they adjust their strategies/techniques for short trades to cope with these and any other perceived differences?
(and thus I'd love it if this didn't turn into a debate about whether short selling is a bad or good thing, or a technical vs fundamental argument ).