Why Shorting is Bloody Hard in Practice

And how I plan to do it...

One of the early lessons I had from Brad was to avoid shorting altogether.

You have asymmetry working against you in that you can only make 100% while the company can multibagger against you (yes, I know you can make more with options/adding to shorts, but you get the idea). This makes position sizing and risk management really tough.

Melvin Capital illustrated this well with a $113m Gamestop short position against an AUM of $12.5B at the start of 2021. So, a position sized at ~0.9% cleaned up $6.8B of Melvins Capital.