Kostolany became rich shorting. He wrote the worst of being a short-seller is that you are earning a lot of money while all your friends are losing it. You have to keep a low profile because everyone looks at you as the cause of their loses.
Re:Tesla Is Facing a Crucible
by rootusrootus on Sunday March 18, 2018 @01:30PM
(#16613035)
It is a lot more stressful because if you bet on the rise, the most you can lose is what you paid for the stock. Your loss potential with short selling is unbounded.
The argument for doing so is that humans err in favour of optimism -- ie, that prices will rise. But you can make money on the market moving either way.
Looking on it as a total outsider with limited knowledge, it seems like a fascinating niche in the financial world. But I imagine it is also even more stressful than betting on the price rise, because you're more often going to be outside the pack.