Shorting is also a tool to hit excessive run up greed with as well. If it should be disallowed then they would also have to disallow the manipulative up spikes prior to news that a company is about to start a drill program, only to see the SP drop upon news of good drill results a couple to four months later.

Thus, as you say, keep within your safety limits is the best strategy for the average retail investor, and as Crazy says, if you venture beyond the sain investment strategy, make sure you know the rules and possable consequences.

What should be forbidden at all costs is the Naked Shorting!!!

Old Joe