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Shorting first pullback after major selloff can be risky, Tom Dante warns

Shorting first pullback after major selloff can be risky, Tom Dante warns
Shorting first pullback risk for traders

Tom Dante, owner, trader, and educator at Personal Blog, cautions that traders often attempt to short the initial pullback following a significant selloff, such as the one seen on Friday, only to then face losses when the market reverses sharply.

He advises traders to exercise caution in these volatile market conditions.

Dante has previously commented on major currency interventions. He recently noted that Japanese authorities spent $73 billion intervening in foreign exchange, but the USD/JPY quickly returned to the 160 trigger. The episode highlights the challenges officials and traders face when navigating rapid market reversals.

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