Shorting the NASDAQ

[sa7med]

I've been looking into investing these days and had a view to invest in some indices. I had a look at the NASDAQ graph today and thought it looks like it wants to be shorted.

I'm thinking with all this trade warring, potential war with iran and resulting energy crisis there might be some shedding of some major industry players (perhaps in the energy and e-commerce sectors). Millennials are also notoriously poor so consumer spending might take a hit in the next years. Not to mention mounting debt, the growing threats of environmental disasters and therefore rising food prices.

I'm just starting out with investing and have 0 experience, despite my degress in economics, so was wondering what you more seasoned types thought. Also, what vehicles/services/etc would you use to short and index like the NASDAQ?

[megarain]

Before u get some random IFA say no one can advise u, as they aren't qualified ..

it's tough.

The thieving index boys charge u a large spread on buying/selling medium dated indexes .. and can also add on other charges. They get all the value.

90% of people don't beat financial spreads .. am sure they are trying.

So, whats left ?

Really, I dunno whats open to a random trying to short. U can get an account with a decent broker, with the lowest spreads etc, but,
its generally tough.

I have banged my head long enough trying to short stuff and generally lost money.

I now just buy to hold 'quality' decent mkt cap stuff .. and find it less stressful.

GL

[weemac]

You could have a long, boring and costly wait until your doomsday scenario plays out, if it does, and I wouldn't base a decision on a 40 year chart pattern. Much easier to try to pick shorter, maybe intra-day or intra-week moves based on news, fears, hopes or technicals rather than wait for possible armageddon. And even if doomsday does happen, when/how do you know it's time to cash in? Far too tough to realistically profit doing these macro-doomsday trades, imo. Almost everyone who's long-term shorted the chart you show is either bankrupt or dead.

I use IG index for indices, but I'd imagine most spread firms would be similar. You might want to look at the constituents of the various indices to see which would be best suited to your views.

[sa7med]

You could have a long, boring and costly wait until your doomsday scenario plays out, if it does, and I wouldn't base a decision on a 40 year chart pattern. Much easier to try to pick shorter, maybe intra-day or intra-week moves based on news, fears, hopes or technicals rather than wait for possible armageddon. And even if doomsday does happen, when/how do you know it's time to cash in? Far too tough to realistically profit doing these macro-doomsday trades, imo. Almost everyone who's long-term shorted the chart you show is either bankrupt or dead.

I use IG index for indices, but I'd imagine most spread firms would be similar. You might want to look at the constituents of the various indices to see which would be best suited to your views.

I'm not really trying to take ultra short term positions as I can't put in that sort of time and focus. I think "armageddon" is a bit harsh, I'm just thinking there's some excess confidence in the markets despite many issues arising. It wouldn't be boring for me as I'd just set and forget really. But yes, I could see how there could be better indices which suit my line of thought better than the NASDAQ.

[sa7med]

Before u get some random IFA say no one can advise u, as they aren't qualified ..

it's tough.

The thieving index boys charge u a large spread on buying/selling medium dated indexes .. and can also add on other charges. They get all the value.

90% of people don't beat financial spreads .. am sure they are trying.

So, whats left ?

Really, I dunno whats open to a random trying to short. U can get an account with a decent broker, with the lowest spreads etc, but,
its generally tough.

I have banged my head long enough trying to short stuff and generally lost money.

I now just buy to hold 'quality' decent mkt cap stuff .. and find it less stressful.

GL

There seems to be a tracker for it (SQQQ). Ill have to delve deeper to figure out what sort of value is being lost there. Thanks for the input.

[PDC]

Markets go down faster than they go up but go up more than they go down.

Shorting your potential losses are infinity, going long your losses are defined.

People seem to have a psychological thing about wanting to short.

[cmuddle]

I would suggest to get an investment advisor, the one you can trust, the one that someone from your friends or relatives have used in the past and he can direct your investment.

A friend of mine is one and he is very good. He is analysing companies with the potential to grow for long term investment.

I can give you his details if you would be interested.

[sa7med]

I would suggest to get an investment advisor, the one you can trust, the one that someone from your friends or relatives have used in the past and he can direct your investment.

A friend of mine is one and he is very good. He is analysing companies with the potential to grow for long term investment.

I can give you his details if you would be interested.

Thanks for the offer, but I want to start small and give it a go and learn on my own. Have a few buddies who can help me out.

[Archangel]

I trade directly with a US broker on the futures and options markets. Tick wide spreads mostly, low commissions as theres a lot of competition in the space now for volume. I am always in favour of shorting markets at all time highs, theres a decent pot odds ratio there. I personally sell premium but there are many ways to get a postion on.

Be very careful with any of the spreadbetting firms. They will ride you all the way and it makes it very hard to be profitable.