Short selling can be risky and should be approached with caution from "summary" of The Little Book of Bull Moves in Bear Markets by Peter D. Schiff
Short selling is a strategy that involves selling a security that the investor does not own with the expectation that the price will decline. The investor then buys back the security at a lower price, thereby profiting from the difference. While this may sound like a lucrative opportunity, it comes with significant risks that should not be overlooked. One of the main risks associated with short selling is the potential for unlimited losses. Unlike buying a stock, where the maximum loss is limited to the amount invested, short selling exposes investors to the risk of infinite losses if the price of the security rises significantly. This means that investors could end up owing more money than they initially invested, leading to financial ruin. Another risk of sho...
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