I don’t really agree about this
Here is an example
A stock with $100 price and we short it with $100
let says it drops to $50 on first day
case A doesn’t take profit
case B takes profit which means earning $50, then short again with the profit, which means shorting all with $150
On the second day, the stock drops to $0 (we don’t care about the bankrupt case, just showing math here)
case A earning 100% of the initial investment $100, final money $200
case B $150 with 100% earning which is…