Longs always win. Here’s why time destroys shorts: - Time Is A Short Seller’s Enemy Every day a short is open → borrowing fees tick up Options decay against them The market can stay irrational longer than they can stay solvent - Markets Have A Built-In Upward Bias S&P 500 is up ~10% annually on average over 100 years Companies retain earnings, innovate, expand Inflation alone pushes nominal prices higher Shorts are literally fighting compounding - The Asymmetry Is Brutal For Shorts → Max gain for a short = 100% (stock goes to $0) → Max loss for a short = INFINITE (no ceiling on price) Longs? Unlimited upside. Capped downside. - Short Squeezes Are Real $GME. $AMC. $TSLA. $MSTR. Shorts get squeezed out. Longs get paid. One squeeze can erase years of short profits in days. - Even “Bad” Companies Recover $AAPL was left for dead in the 90s $AMZN was a “dot-com bubble stock” in 2001 $NVDA was a gaming chip company nobody cared about Patience + conviction > short thesis every time The Bottom Line: Shorts need to be RIGHT → on direction → on timing → on magnitude Longs just need to be RIGHT on direction and patient Time does the rest.



