As retail investing continues to gain momentum, thanks in large part to meme stocks, social media, and no-fee brokerages, more people are participating in the markets. While this is a good thing overall, novice investors should be aware of the risks that come with different strategies.

One of the riskier things you can do is short a stock. In simple terms, shorting means that you have a bearish outlook on a particular company and want to profit off any decline in the stock price. While Wall Street is full of institutional funds that use short-selling as part of a broader strategy, these investors are working with loads of data and models to help mitigate risk.

One financial influencer who specializes in short-selling is blogger Edwin Dorsey, who publishes a report called The Bear Cave. This report focuses on companies he believes are troubled. Unlike large hedge funds or money managers that have entire teams dedicated to research, Dorsey is a small operator posting on the publishing platform Substack. 

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Source Fool.com