an interesting conversation, i actively short the market and have done so short term within timeframe of days (FMG) and more medium term like MYR, RCG.
few points, gearing is a feature of the instrument it does not mean you use it. few people understand the difference between gearing and risk they are completely different. Risk is the $ amount you are prepared to lose in a trade, gearing is the amount of your capital you need to commit to have the position open. you can risk the same amount shorting a stock as you might buying a stock, the gearing of CFDs for example means you just need less of your capital to be allocated to that position. i.e. i buy $10,000 BHP shares i usually need $10,000 in my account. I might be prepared to risk $1,000 in the trade. I might instead want to short it and perhaps might do it via a CFD. I still might want to risk $1,000 in the trade but due to margins of CFD might only need 10% or $1000 of the positions value in my account. Dont do what i think people think they can do which is say i have $10,000 in my account so i will short $50,000 or $80,000 worth of BHP, this is now being "geared"
as for your losses are unlimited i am sorry to say but if you dont have the discipline to know at what point you are willing to accept a position as gone against you and exit with a loss (that you can define before you enter the trade) then trading markets is not for you. It wont be the unlimited loss risk that wipes you out, taking large losses time and time again will erode and damage your capital far more than a theoretical unlimited loss risk on a particular trading instrument.
as for techniques to shorting vs buying stocks , true perhaps as a fundamental investor you might stay to the long side, but i am perplexed why chartists and the technical people would shy from it as being "harder", just the turn the chart upside down.
Of course with the borrowing charges of shorting and the overnight charges of CFDs that may not appeal to people and that impact will depend on the size of your positions, but those points although valid for why you might not trade CFDs should not be confused with "risky" "gearing" and Market makers ripping you off....
