The Wall Street Journal ran a story the other day titled “List of Challenges for Short Sellers Keeps Growing Longer.” The piece questioned whether short trading was still viable, but also made the case as to why short selling is a needed part of our market system.
One guy in the article opined, “For me, shorting has changed from being an inherent strategy to a more tactical strategy.”
Trend following trading on the other hand has always been tactical or said another way opportunistic. Trend followers don’t wake up and aim to be all “long” or all “short”. Trend followers can be either long or short depending on which way the trend is going.
The Wall Street Journal article unfortunately continues the idea that you are either long only all the time or short only all the time. Why write this when the best traders don’t think or trade with such belief sets?
A debate on Trend Following Drawdowns