Investment Shorts vs Trades

The times are tough now
Just getting tougher
This old world is rough
It's just getting rougher
--Bruce Springsteen

Every market cycle offers new lessons learned by doing (often with steep tuition). For me, the most important lesson learned since the March 2009 lows is that short positions cannot be treated as long term investments.

Instead, as Fleck notes in his Ask Fleck section today, "When it comes to shorting, all positions are always trades (it is the nature of the beast)."

When shorts aren't working, it is better to cover and await further developments. Again from Fleck, "I often have to cover and reshort several times before I get the trade right, though sometimes I just walk away."

Took a while but I get it now.

position in SPX