[legion]

Originally Posted by speeder

Shorting stocks is not for amateurs or anyone w a weak stomach. If you want to see an excellent documentary on the subject, watch the third installment of “Dirty Money” on Netflix. The people succeeding at it are literally some of the smartest people on earth. Rocket scientists and nuclear physicists. It’s all about the detective work.

This. If you short a stock, your gains are capped and your losses are unlimited. You must know what you are doing and have the resources (and money to lose) to back up your position. Even if a company is failing, you can still lose everything on a short position if the stock experiences a sustained price increase based on false hope (or it gets swept up in a larger bubble).