SVC,Do not underestimate the risks of shorting stocks. Risk...

SVC,

Do not underestimate the risks of shorting stocks. Risk management is critical.

If you want to read about how badly a few punters got it wrong shorting stocks, read the thread on Hot Copper about RIO Tinto and WOW.

Another example, if you took a short on CBA the day before it announced the $500 million on-market share buyback, you would have lost money.

Avoid shorting BHP, because it has announced an on-market share buyback. Has not started yet, but if you take a short and BHP starts the buyback a minute after, you are gone.