What is short selling and should you do it?

The video explains the concept of short selling, contrasting it with long investing. It details how short selling works, where investors borrow stocks to sell them, hoping to buy them back at a lower price. The risks involved, including limitless potential losses and the phenomenon of a short squeeze, are discussed. The video also covers why some investors use short selling as a strategy to manage risk in their portfolios, despite its high risk. For most regular investors, long-term investing is recommended over short selling.

Describe a scenario in which an investor might use short selling to reduce risk.

Why is short selling considered risky for most regular investors?