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Why do people have an aversion to shorting stocks ?

Posted on 7/16/26 at 6:17 pm
Posted by ZZTOP
Member since Jul 2026
11 posts
Posted on 7/16/26 at 6:17 pm
It's all about making money.
I shorted SPCX when it was 220 using a leveraged short.
I've almost tripled my money.
When I told people I was shorting SPCX they all freaked out and said :"Good luck with that, Elon's a super genius with rockets and stuff bro"


I still can't believe people were actually buying this nonsense when it had a market cap larger than MSFT & AMZN.
A fool and his money are soon parted.
Posted by faraway
Member since Nov 2022
4089 posts
Posted on 7/16/26 at 6:54 pm to
bc it's primarily used to manipulate stock prices, it's mostly stealing shares, making money on them, and then returning them.

however, it you're talking in terms of averse as a means of making money, one big reason is bc the risk vs reward is terrible.
Posted by Everyday Is Saturday
Member since Dec 2025
2371 posts
Posted on 7/16/26 at 7:13 pm to
Bull market, Baw.

Be dat unicorn contrarian. Be bold!
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52717 posts
Posted on 7/16/26 at 7:14 pm to
Because the market is completely irrational and shorting can carry infinite downside
Posted by TX_Tiger23
Seabrook, Texas
Member since Aug 2013
215 posts
Posted on 7/16/26 at 7:20 pm to
So did you short it or did you use a leveraged inverse ETF? Those are two different things.
Posted by W2NOMO
Member since Jul 2025
2968 posts
Posted on 7/16/26 at 8:02 pm to
Is this strategy repeatable or did you make enough for life?
Posted by Horsemeat
2025 Contributor Of The Year
Member since Dec 2014
15657 posts
Posted on 7/16/26 at 9:04 pm to
I'm here to invest as carefully as possible, not play a casino.

WSB is that way broski ---->
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
81830 posts
Posted on 7/16/26 at 9:07 pm to
Could have something to do with the risk being literally unlimited. How would you like to have shorted GameStop when the Reddit bonobo army attacked?

If you want to bet against a company, buy puts. Worst that can happen if the price doesn't fall is the puts expire and you lose what you paid for them.
Posted by AuBeerStud
Michigan
Member since Feb 2013
546 posts
Posted on 7/16/26 at 9:36 pm to
ASTN is up 75% in the past week.

Making money is making money. I’m all about it.

You made bank If you shorted pretty much any space stock this month

Posted by Big Scrub TX
Member since Dec 2013
40109 posts
Posted on 7/16/26 at 11:34 pm to
quote:

bc it's primarily used to manipulate stock prices, it's mostly stealing shares, making money on them, and then returning them.
Posted by Big Scrub TX
Member since Dec 2013
40109 posts
Posted on 7/16/26 at 11:36 pm to
quote:

Why do people have an aversion to shorting stocks ?
Any moral "aversion" to it is stupid. It's perfectly legitimate.

However, it's extremely hard to do successfully. Given the relentless upward bias of markets - as well as the "short carry" one must pay to be short (borrow costs, dividends, etc.) - it almost relies on market timing, which is nearly impossible.
Posted by Tiger4life306
Member since Apr 2016
836 posts
Posted on 7/17/26 at 4:48 am to
quote:

When I told people I was shorting SPCX they all freaked out and said :"Good luck with that, Elon's a super genius with rockets and stuff bro"


The average person doesn’t really understand how you short a company. They might understand the basic idea of betting against a stock, but they don’t know the mechanics of how a short position actually works.

Ever since the GameStop/Reddit saga, though, most people have at least heard the term “shorting.” They remember hedge funds getting crushed and losing billions, so the concept isn’t completely foreign anymore.
Posted by makersmark1
earth
Member since Oct 2011
21432 posts
Posted on 7/17/26 at 5:11 am to
You should short options to leverage your knowledge.

Shorting a stock share for share is ok, but shorting options is better.



For me, I sell some covered calls and cash secured puts, but I stay away from naked options bc I could lose more than all of my money.
Posted by ZZTOP
Member since Jul 2026
11 posts
Posted on 7/17/26 at 5:49 am to
quote:


So did you short it or did you use a leveraged inverse ETF? Those are two different things.


Via ETF.
Bought SSPC(2X SPCX Short) at $6.10, it's now at $17.56

I tried telling people that the risk with SPCX was being long, not short.
This post was edited on 7/17/26 at 5:55 am
Posted by SonicAndBareKnuckles
Member since Jun 2018
1993 posts
Posted on 7/17/26 at 6:23 am to
I saw what happened to the villain in Casino Royale.
This post was edited on 7/17/26 at 6:24 am
Posted by TX_Tiger23
Seabrook, Texas
Member since Aug 2013
215 posts
Posted on 7/17/26 at 7:14 am to
That’s great for you but you didn’t short SPCX. You speculated with an inverse ETF. It’s not the same. It’s not relevant to SPCX but if you short a stock with a dividend you actually have to pay the dividend to the other investors. Shorting is a whole different ball game than speculating with inverse ETFs.
Posted by ZZTOP
Member since Jul 2026
11 posts
Posted on 7/17/26 at 7:23 am to
quote:


That’s great for you but you didn’t short SPCX. You speculated with an inverse ETF. It’s not the same. It’s not relevant to SPCX but if you short a stock with a dividend you actually have to pay the dividend to the other investors. Shorting is a whole different ball game than speculating with inverse ETFs.

Whatever.

Doesn't change the fact that I've tripled my money in a few weeks by "speculating" that SPCX was ridiculously overpriced and about to crash.

FYI, All investing is speculating, long & short.


This post was edited on 7/17/26 at 7:29 am
Posted by cgrand
HAMMOND
Member since Oct 2009
50221 posts
Posted on 7/17/26 at 7:33 am to
quote:

I shorted SPCX when it was 220
good ole TD money talk. Everyone buys at the bottom and sells/shorts at the top. It’s amazing

good call if you actually did go short at the top but here’s a little secret…you got lucky. Congrats
Posted by ZZTOP
Member since Jul 2026
11 posts
Posted on 7/17/26 at 7:39 am to
quote:

good call if you actually did go short at the top but here’s a little secret…you got lucky. Congrats


It wasn't luck, it was logic.
At one point it had the 3rd or 4th largest market cap in the world.

That being said, there's always risk in underestimating the stupidity of the general public & the ability for a stock to remain illogical
This post was edited on 7/17/26 at 7:44 am
Posted by Fat Bastard
alter hunter
Member since Mar 2009
91853 posts
Posted on 7/17/26 at 8:40 am to
ZZTOP
Member since Jul 2026
10 posts

alter much?

if you like shorting you need to trade commodity futures. can make just as much there going short than going long and it is easier to execute than shorting stocks.
This post was edited on 7/17/26 at 8:41 am
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