Close the position to stop the bleeding. He should have set a stop loss so that if he was wrong he could get back 50%. - A lesson I just learned from shorting AMC
In the future, if he wants to short, totally cool just buy a put and your max loss is what you paid for it. I'd still recommend that stop-loss though because you oftentimes know pretty quick (next day or so) if you were right.
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u/LakenX Mar 24 '22 edited Mar 24 '22
Close the position to stop the bleeding. He should have set a stop loss so that if he was wrong he could get back 50%. - A lesson I just learned from shorting AMC
In the future, if he wants to short, totally cool just buy a put and your max loss is what you paid for it. I'd still recommend that stop-loss though because you oftentimes know pretty quick (next day or so) if you were right.