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Some basic statistics based from my own experience: markets really only trend 10% of the time; these trends can be down as well as up; markets fall three times faster than they rally. The reason why shorting has been regarded as belonging to the realm of more experienced investors is that, in theory, you have unlimited downside. While it is true that losses could be significant, the ‘unlimited’ moniker is ludicrous. If losses are unlimited in shorting, then that means the share price can also rise to infinity. That is clearly nonsense. You can assess the upside potential in most companies, and there is always a ceiling that can be assessed. No share price will ever rise to infinity, so there is no such thing as ‘unlimited’ losses.