Sam..

You are asking me questions that there are no firm answers for..Trying to understand short selling is a lifetime of pain..

Take for example ..you think a stock is over valued and you start to short it ,hoping to drop the price..panic the buyers and get a bunch of selling going so you can buy back cheeper to replace the stock you borrowed to short in the first place..

Largest complication is being right too soon. Even though a company is overvalued, it could conceivably take a while to come back down. In the meantime, you are vulnerable to interest, margin calls, and being called away. Academics and traders alike have tried for years to come up with explanations as to why a stock's market price varies from its intrinsic value. They have yet to come up with a model that works all the time, and probably never will.

So don't feel bad Sam..You probably know as much as the next guy..

Being a short seller is a professional position player,usually well funded,but on margin when short selling..

And if you short and the price on the stock goes the other way,I'm sure it will cure you of dabbling in short selling ,if you are a novioce at it..

Now go to bed and dream about gold nuggets..LONG gold nuggets..forget the short gold nuggets..leave them for the sweeper..