Wow, I finally get it now. Cnbc and all the so called "experts" being interviewed in the media should've just called you to explain it all...So really though, what's a stock?
Can you put a STOP LOSS ORDER on a Short Sell Order? If so... How do you go about it? As opposed to a STOP LOSS that STOPS and SELL... Does it STOP LOSS at the price you set and... BUY to COVER ???
This is the first time.... its May now? This is the first time Ive actually UNDERSTOOD what happened with gamestop. You are amazing. Please please make more videos.
Thank you for the upteenth explanation on how to short stock. I have to relearn how it works every time because the down side (which you describe so well!) is so massive I automatically brain dump the info so I don’t do it. I’m much happier just buying and holding.
You're awesome! I wish I had known about your channel sooner, I would be in a better position with AMC. Thank you for making such quality video explanations. Can you share with us, how often these shorts need to be covered? Is it EVERY week, Every Friday etc? I know they only have certain # of days to make good on them but they are cheating with these short ladders. Did the squeeze happen already? I see charts and graphs that it's not over yet - but hedgies are keeping the price low with their black magic - the free market is being stunted, big time. Any additional info is appreciated. I'll be over here holdin' the bag awaiting your reply. Thanks again. Peace!
Hello, I’d appreciate if you would respond. I know how to sell a stock, but I bought the same stock at different prices and am currently holding them. Fake example: Let’s say I bought 13 shares at $10 of Starwars. However, I then bought 30 shares at $13 of Starwars. In total I have 43 shares, but the the prices differ. I made the mistake of not selling high and held when the price dipped. So now let’s say, the price is doing really good. I am still holding. But I want to only sell when the price of Starwars hits $10,000 for example. I’m using ameritrade. Is there anyway to sell those SPECIFIC 13 shares (the low price I bought it for) at $10,000 and keep the other 30 shares (the higher price I bought it for) separate? If I sell all my 43 shares and set the price at 10,000 do the shares automatically sell from the lowest price I bought them at? (Im sure the answer is no.) I basically wish to know if I can sell SPECIFIC shares on ameritrade, that way I can sell the 13 shares (again, which were at a low price when bought) very high. And to do this, it’s a “limit sell,” right? I would greatly appreciate if you can help me!
I watched several videos about short selling and I got the idea of what it is and its purpose but not how it is actually done and where the money to buy the stock is coming from. After watching this video I understood everything. Thank you for a good and to the point explanation.
Great explanation. How long can the short seller wait before paying it back? can they wait as long as they want until the price goes down or is there an expiration date?
I'll be interested to find out the result of the SEC investigation into the trading brokerages and clearing houses (specifically, their vested interests). Will there be a determination that hedge funds and other entities were performing "naked" or synthetic shorts on stocks such as GME, which was exposed by the WSB revolution. Also, will this continue to have a cascade effect across the market; impacting investor sentiment about the integrity of our market.
Thanks for the explanation. I am not a “short seller” but I like learning more about it and hearing other people’s thoughts and opinions about the subject. Keep your insight coming! Love your channel! I’m following!
SHORT SELLERS WILL LOSE LOTS LOTS OF $$$! Investors believe market will keep going down. They SELL & start SHORTING STOCKS, Smart money will SQUEEZE those brainless, get their $$. SQUEEZE THEM LIKE GAMESTOP!!!
Short trading should be banned on any type of trading platform and never be called an "investment". ..it is GAMBLING. Should only be allowed in casinos. Mixing it with investments is misleading
I dont know how the shorting has unlimited downside when the price of the stock goes up infinitely. I mean if my brokerage takes collateral, lets say $500 for lending me $1000 to short sell tesla stock and then worst case scenario my brokers will only take my $500 collateral during margin call. Am I understanding this correctly? I'm new to trading. So please explain this scenario to me, someone.
How is all this represented in IRS tax forms? Given that the short-seller holds USD during the open position, it would seem to me like no capital gains or losses can ever be accrued as long as A) opening the position and selling the stock and B) buying the stock and closing the position happens immediately. I‘m sure that‘s not how it works though. ? What am I missing?
I'm tryna figure out why someone would short sell a stock over buying a call or put if it's that risky. At least when you buy a put you can still make money from the stock price going down, but maybe I still have a lot to learn
I understand entirely the trailing stop-loss strategy on a stock that is going up. What about the opposite approach when a stock is shorted. For example, you short a stock with a 10% protection. If it goes against you(up) by 10%, the stock has to be bought back, hence generating some loss but protection. Is there such a strategy?
As much as i liked the video you did not explain what would happen if you immediately closed the position and took a loss on the short sale, for example you had 1 short stock you purchased at $100 and it went up to $110 for the 1 stock and you decided to close your position, did you lose $110 or did you lose $10.00 for that 1 stock? Your video sounds like you could lose everything to infinity but you never explained the option of closing or buying back that stock at a higher price as you see the numbers starting to go out of control the wrong direction. Please explain.
It sounds like Shortselling should be made illegal. You are selling shares you don't own! The whole thing, seam very dodgy. I could see unscrupulous people putting good companies out of business 🤔
yeah short amc and gamestop, steam supplies all onlien games and um amc with netflix hulu googleplay is obsolete, short! what about our amc dates? oh... u mean we might go extinct? oh well short!
Who is in the other side of the trade? a.- The Market Maker. He's there to steal ALL your cash in stocks and Options, All gurus refuse to talk about the Market Maker, Why? a,- Maybe they get paid by the MM?
The more I try to understand this concept, the more I am asking, who is the idiot who thought this stupid shit up? Why are people allowed to play such games and falsely affect the value of a stock.
Is it reasonable to keep the short for overnight or several days? Or that it is for day trade? Thanks And I would like to compliment that your accent is so easy to understand!
Smart guy to short Tesla. That was my plan! Is there an alternative to shorting that removes some of the extreme risk but still allows you to profit from falling stock? Or is regular long positions in the competition the only safe alternative?
Trailing Stop loss For a long position, an investor places a trailing stop loss below the current market price. For a short position, a trailing stop loss triggers an exit when the price increases above the current market price. Could you place place an advancing stop loss above the current price? In other words to protect yourself in the event the market goes up against you
I need to watch the big short again. I really don't understand how in the big short the investors made 5x their investment by shorting the housing market. Maybe it will make sense second time round.
What I don’t understand is who would loan you shares and let you sell them keeping the sale proceeds … and then accept the return the same number of shares. All they see is risk and no profit, why would to anyone do this?
What is it called if someone is buying a stock let’s say for 100 and sells it for 140 and then he buys it back at 100 is that considered timing the market?
Since the short seller only borrow the stocks how it's recorded by the custodian when the short seller buy the shocks... it's only one side transaction. Please advice anyone 🙏
Hi there, the loss payoff on short selling is indeed unlimited at Arvabelle said. Having stop loss order is just a trading mechanism where it helps to limit the loss if it gets filled. For instance, lets say a hedge funds sold 1 share short GameStop at $40, and lets say they set a stop loss order at $50, so theoretically a $10 maximum loss (or 25% loss). But lets say the market opens at $120, because of the short squeeze, the stop loss will be ineffective because the market never traded at $50, (it passed it and straight to $120). So this particular hedge fund lost $80 on top of its principal $40, so a 200% loss.
yes but how do you short it, when u buy stock you just purchase it, how do u make it a short position? I don't see where you are making it a short, you just bought a share
How did you learn so much at such a young age, my dear lady. I am a theoretical physicist and hardly know much about the topic you have covered. It has been in the news for the past three days. Now I know what was all the news about! Thank you.
Amazing video, perfectly explained and I took multiple pages of notes and spent multiple hours writing all of this down. Again, great video and thank you!
Why would I want to lend you a share trading at 1000 that I could sell now and profit. So you expect it to go down to 700 and you will return my share. Okay, I got my share back but it’s worth 300 less. I understand the borrower makes money because they keep the difference. Please explain why the lender wants his or her shares returned at a lower value even if there is a fee. Does the lender get more in fees than the 300 in stock value he lost? 🤔🤔🤔🤔
Because you never know that to your stock is being lent. The broker is doing it for you. Why and how can they do that? Because when you use their app you may have accepted the terms and conditions granting them permission to do that Short selling goes like this: 1 - You borrow a stock that costs a 100$ and automatically sell it at that price. 2 - You have 100$ now in your pocket ,and also owe someone that stock even if you sold it. 3 - You wait a week for example, and now the stock is worth 50$ 3 - The person who bought the stock from you now has to sell it back to you for 50$ (he is contractually obligated to sell it back) 4 - You use 50$ of the 100 you got from selling the stock, meaning that you now have 50$ and the you got the stock back. 5 - You return the stock to the person or broker your borrowers that stock from, and you get to keep those 50$. 7 - Congratulations: You have won 50$ with a stock that wasn’t even yours to begin with by secretly selling it and buying it back a week later. So it’s like: You sell a borrowed stock at a high price, and buy it back at a lower price to be able to return the stock back and keep the difference. The 100$ you got at first were nice and all but since it’s not “your stock”, you cannot really just sell it and forget about it you have to buy it back in order to give it back to the true owner.
Because it’s a futures contract that forces you to buy it back later in order to give it back to the lender Short selling goes like this: 1 - You borrow a stock that costs a 100$ and automatically sell it at that price. 2 - You have 100$ now in your pocket ,and also owe someone that stock even if you sold it. 3 - You wait a week for example, and now the stock is worth 50$ 3 - The person who bought the stock from you now has to sell it back to you for 50$ (he is contractually obligated to sell it back) 4 - You use 50$ of the 100 you got from selling the stock, meaning that you now have 50$ and the you got the stock back. 5 - You return the stock to the person or broker your borrowers that stock from, and you get to keep those 50$. 7 - Congratulations: You have won 50$ with a stock that wasn’t even yours to begin with by secretly selling it and buying it back a week later. So it’s like: You sell a borrowed stock at a high price, and buy it back at a lower price to be able to return the stock back and keep the difference. The 100$ you got at first were nice and all but since it’s not “your stock”, you cannot really just sell it and forget about it you have to buy it back in order to give it back to the true owner.
I've watched video after video on short selling, and this is the absolute best explanation of short selling and how it works. You also just gained a subscriberrr...Thank you!! 🌠
