Most people’s first instinct when looking at a company is to weight the arguments for or against buying stocks, and if there appears to be too much downside risk they will simply move on to something else, but a successful short can be incredibly profitable. As Amit Kumar explains in his new book Short Stories from the Stock Market it can also be extremely risky. Shorting stocks is for the financially experienced “Shorting stocks is for the financially experienced and sophisticated investors with a strong stomach for losses. It can be potentially dangerous to your wealth,” he writes. People often…