All of you probably know Michael Burry, the investor who became famous for correctly predicting the 2008 housing market crash, earning him the nickname "Big Short." Today, we're going to take a look together at how it all works, the risks and the no/no's of shorting stocks.

When the name Michael Burry is mentioned, everyone probably thinks of the eternally pessimistic investor who became famous for his bold bets against the market. Burry, who became an icon thanks to his success in predicting the 2008 housing market collapse, remains one of the most prominent short sellers in the history of the financial world.

His story begins in 2005, when he began to see warning signs that the mortgage market was heading for an inevitable crash. Based on his analysis and deep understanding of the market, Burry convinced investors to bet that home prices would soon crash. When the crash did occur, his bets proved remarkably accurate and profitable. The move, later made into the Hollywood hit "The Big…