Unlike going long on stocks, shorting stocks (at least by our experience) requires a more technical approach.

When we are long a stock, and it moves against us, the net impact of the name in our portfolio diminishes. For example, a 10% drawdown on a 1% long position leaves the stock at 0.9% (10 basis point loss) of the portfolio, such that another 10% loss only impacts it by an additional nine basis points.

When we go short a stock, our risk is compounded by the fact that the size of the position gets larger when the stock goes against…

Upside Technologies

Investing research and thoughts from an Upside user and Portfolio Manager named ATEC, based in Singapore. learn more at https://upsidetechnology.co/

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