I have done a lot short selling in my life. I think investors go through three distinct stages. The first stage is that it is easy. Right now, a number of investors have worked out that the AI boom is just like the dot com boom - so Nvidia etc are all massive shorts. Good luck.
The next stage is that they will never short sell again. A good example of this would be people that thought AI was a bubble about a year ago, and lets say shorted Nvidia on the Deepseek sell off. You would now be 140% offside from the lows.
If you had shorted Micron instead, you would be 1000% offside for example. Other famous bearish trades in recent years would include Bitcoin and Tesla. Both have destroyed short sellers - and this is why many investors will tell you they will never ever short sell. And I respect that. But short selling can and does work in certain situations.
The third stage is to treat short selling as a tool to express an opinion. And that is where I am now.
