Please read this carefully before trading with SH
As you can see from the line chart, the SPX500 has broken down from the bullish trend line. Instead of shorting it, you can also buy the SH ETF if you believe SPX500 price will continue to fall.
It says it is meant for 1 day trading which means the timing of short entry becomes crucial. If you do not have a clear trading strategy to do that, it is better to avoid using such instrument.
You would realise the market is full of products, much like the Casino to increase your stay in this virtual market. From a trading perspective, the Market hopes to win you at the end of the day even if you won a few round at the black jack table (eg. forex). You might become overconfident and think you are over the top that you go on to lose all you have later at the futures or commodities table.
Those who had been to the casino will be able to relate to what I am saying.
In summary, know what you are in for. If you come in with 1000 chips and are prepared to lose all of it, make sure you stick to the game and NOT be tempted to go and exchange for more chips (similar to adding more funds to the account).
When Lady Luck is with you or God of Fortune likes you, when you make profits, know your limit and take it ,get out of the casino, go out and celebrate. Don't even think of double down what you had won (show hand). The casino works on the law of probability, over time, more people lose than the few who won. Those who won knows they cannot stay all day in the casino and knows when to quit.
As you can see from the line chart, the SPX500 has broken down from the bullish trend line. Instead of shorting it, you can also buy the SH ETF if you believe SPX500 price will continue to fall.
It says it is meant for 1 day trading which means the timing of short entry becomes crucial. If you do not have a clear trading strategy to do that, it is better to avoid using such instrument.
You would realise the market is full of products, much like the Casino to increase your stay in this virtual market. From a trading perspective, the Market hopes to win you at the end of the day even if you won a few round at the black jack table (eg. forex). You might become overconfident and think you are over the top that you go on to lose all you have later at the futures or commodities table.
Those who had been to the casino will be able to relate to what I am saying.
In summary, know what you are in for. If you come in with 1000 chips and are prepared to lose all of it, make sure you stick to the game and NOT be tempted to go and exchange for more chips (similar to adding more funds to the account).
When Lady Luck is with you or God of Fortune likes you, when you make profits, know your limit and take it ,get out of the casino, go out and celebrate. Don't even think of double down what you had won (show hand). The casino works on the law of probability, over time, more people lose than the few who won. Those who won knows they cannot stay all day in the casino and knows when to quit.
