Mark Prouty

Make Money in a Flat, Volatile Market by Short Selling Leveraged ETFs

You can never make more than 100% on a short sale in your example if you short 1 million shares @ 5 or 5 million and it goes down to $1 or a value of 1 million you have made $4 on $5 of "capital" so you made 80%. Your loss is infinite.

People misunderstand that EVERY investment is path dependent, if you double your money every day for 20 years and then go down 100% in one day you are left with nothing.