Short-selling stocks — and trying to play short squeezes — can be very dangerous

Investing and trading are two completely different activities. If you are new to either or haven’t delved into the mechanics of short-selling, it’s important to understand how this type of high-stakes trading can influence stock prices, even if you have no intention of doing it yourself.

Shorting a stock is one of the riskiest things you can do as an investor. But the meme-stock craze — essentially playing the other side of short trades — can be nearly as risky because of the wild swings in share prices.