How can you be a BEAR in a market where you cannot establish a short position?
Your either BUYING to OPEN (BULL) or SELLING to CLOSE (NEUTRAL). No market I have seen allows you to SELL to OPEN (BEAR). If you cannot SELL which you do not own you cannot SHORT, if you cannot sell SHORT you cannot be a BEAR!! Of course in the world of ALT COINS you can also 'mine to open' but since your a net holder of the underlying (coins) your technically LONG making you a BULL.
A BEAR in true terms sells first to open a position and buys back to close a position hopefully at a lower price so he can profit. If he buys back at a higher price he takes a loss.
Your either BUYING to OPEN (BULL) or SELLING to CLOSE (NEUTRAL). No market I have seen allows you to SELL to OPEN (BEAR). If you cannot SELL which you do not own you cannot SHORT, if you cannot sell SHORT you cannot be a BEAR!! Of course in the world of ALT COINS you can also 'mine to open' but since your a net holder of the underlying (coins) your technically LONG making you a BULL.
A BEAR in true terms sells first to open a position and buys back to close a position hopefully at a lower price so he can profit. If he buys back at a higher price he takes a loss.
Being short or long is about the trade/position you take. Being bear is about the opinion you have. So yes you can be bear on a market that cannot be shorted. It just means that in your opinion the price of the asset will go down.
For example you can even say a news is bearish for a market and as far as I know, news dont put on trades : people do.
You don't seem to have a very firm grasp for how markets work. Short selling has zero to do with the price of anything, its just someone betting that the price of whatever you are selling short will go down at some point in the future. However, if the majority of a market has a bearish attitude then that decreases the number of buyers in that market, while also increasing the number of sellers, and thus prices go down. There are less buyers because most rational people will not purchase something they believe is going to go down in value and more people will sell because they believe they can get in cheaper in the future.
From investopedia:
Quote
Definition of 'Bear Market'
A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows.
A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows.
...short selling has nothing to do with price movement...
Now that's the funniest thing I have heard all day... That might be true if your trading 10 lots of SPY. It's not my market knowledge I'd question with a statement like that!
AIG, FRE,FNM, AND C didn't crash and burn 5 years ago because longs sold, or no buyers were in sight. No those stocks cratered because they were borrowed and sold... Actually several firms didn't even secure the borrow and shorted positions they had no right to.
Short selling certainly can impact price, but what do I know! LOL.
, sometimes i'm wondering, are people really selling with a lose? Why did they mine it? etc...
we NEED that with KDC too!