Comment by chrisan
You imply you either would believe his word or would short nvidia yourself if he said he was. If not, why not?
You imply you either would believe his word or would short nvidia yourself if he said he was. If not, why not?
> Lots of very smart people have lost a lot of money by being completely right about the destination, but wrong about the path and how long it will take to get there.
If you make a habit of this and still lose money, then either you statistically were very unlucky, or did not have a history of being right.
The 'fun' things with shorts is that they have a fixed upside and infinite downside (ie if you go short $1000, the most you can earn is $1000, but you could lose any amount of money and much more than you invested. This is the opposite of buying a stock, where if you invest $1000, the most you can lose is $1000, but there is no limit to how much you can earn). You can be perfectly right 9 times out of 10, but that 1 time you're wrong can quickly wipe out everything you made from being right those 9 times.
Close - If I had the degree of confidence that post implies about Nvidia being overvalued, I would take an aggressive short position.