A large majority of investors (and less so traders) understand the reasoning behind short selling. Some people actually think it is an evil act that manipulates stock prices or indirectly hurt companies via equity or news. It's actually quite the opposite. It generates a healthy market environment, keeps abnormalities in check, and sometimes serious overvaluation from occurring. It's simply the opposite of buying, nothing more. I look for candidates with extreme overvaluation or underlying issues within a business (competition, lack of growth, deteriorating SHV, bankruptcy, etc). My has included LULU, ULTA, TSLA, BKS, GLD, SLV and a variety of lesser known names.