Other than the direction, I used to think that short selling is the same on the long side.

I found that is not true and here is why

When you short, you can lose more than your capital

Imagine you short a stock at $50 and it goes to $0. Your gain is $50 or 100% gain. This is the maximum gain you can get. On the other hand, if the price continues to go up to $100, or $200, or $300… You can lose more than your capital with 200% or 400% or higher – the sky is the limit! And this is without any leverage. It is definitely not a position you want to be in.

Yes. Of course you can put a stop loss to it. In fact, you MUST always have a stop loss when you short anything.

On the long side, you buy a stock ...