A Short Explanation of Short Selling (feat.
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- เผยแพร่เมื่อ 28 ก.ย. 2024
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Betting on a stock's failure can be a risky business, as GameStop short-sellers learned in January 2021.
We can hardly believe it, but this is our 100th episode of Two Cents! What do you want to see us cover next? Let us know in the comments!
Featuring Richard Coffin, of The Plain Bagel: / @theplainbagel
Sources:
www.npr.org/20...
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Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson, AFC®
Directors: Katie Graham & Andrew Matthews
Written by: Philip Olson, CFP® and Julia Lorenz-Olson, AFC®
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Dano Johnson
Images by: Shutterstock
Music by: APM
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Thanks to everyone who joined us for the live chat and especially The Plain Bagel! : )
How do those collage professors denying reality of trickle down economics explain Thrift stores . Or used car deals or . History of the car only the super rich could afford a car that kept breaking down . . Or how only a hand full got rich off the gold rush and but quality of infostructure of entire country improved
Big fan of The Plain Bagel, I was excited to see you both collaborating on a video. 😄
I learned so much today. Short selling is pretty much trading put options, except you’re using borrowed shares from a margin’s account. Also, you’re obligated to give the shares back to the brokerage to avoid a margin call. This is tricky stuff. It’s so much simpler for me to buy stocks and ETF’s. The animations really helped me visualize the concept. Thank you, Julia & Philip. 💵
Please 🙏 now do naked short selling and shorting above float %
@twocents is using Robinhood a shortsellelling (potential infinite losses) or is that a flat loss if stocks drop?
I literally looked this up yesterday and watched plain bagels explanation. Can't wait for this! Cause I got about half of it.. I think
Short selling turns the investment chart on its head. Literally. Because your gain is their loss, and vice-versa.
You have the "potential for infinite losses", but only a potential for finite gain.
Because a stock can only go down to 0, you can only gain up to a certain amount.
I'ld rather make thousands of dollars per week investing in the cryptocurrency market with the help of a seasoned analyst. It has been my best source of income for the past few months easiest and stress free way to make passive income online
If you dont mind I can recommend you to my analyst.....for more updates and information
Heck yes, I’m pumped for this episode! I made a 2500% return on GameStop at the beginning of the year. I’m going to owe more in taxes than my salary this year 😂🤑
They got shorted the #### out, im with you fellow ape 🚀💎🤲
only if you sold.... hodl
When amc squeezes 2DMOON the National debt will be paid off by ONLY half of the big share holders cashing out!!! How could the govt be against this MOASS!!!
Glad to see Plain Bagel featured here! Good collab!
This was a brilliant explanation of the topic! Thank you y'all!! I'd always heard that hedge funds will "borrow" stock hoping it drops in price but never understood WHY someone would lend them the stock in the first place! What would they gain out of it? But of course, the answer, as always, is a potential profit.
Julia and Phillip-your acting has only gotten better and better!! Thank you so much for putting so much effort into this.
Excited for this! As much as I love Two Cents, Plain Bagel has the Canadian perspective I need. Would be interested to see the two channels discuss this similarities/differences between the two countries finance systems
the USA finance system is based solely on greed
@@KimberlyLouvin All countries' finance systems are basically all based on greed if they're capitalistic systems. Short selling however is a whole another level since it's based on the downfall of others. 😕
Great collaboration of two of my favourite financial TH-cam channels! I was really excited when you announced the vid and I wasn’t disappointed! Well done folks
Everyone: "Avengers Infinity War is the most ambitious crossover event in history."
Two Cents and The Plain Bagel: "Hold my beer!"
More like hold my bagel
Ya best collab ever
@@maximm8697 hold my Two Cents and my Bagel
This video couldn’t have come at a better time. GME is up 15% and AMC is up nearly 100%.
Puts are cheap
@Raj Nair look at that, you answered your own question, up 100+% today.
It's almost as if we saw this coming...
don't forget BB, it is up 32% today.
@@bradchin7746 I had totally missed that one. I gave up on BB months ago. I’m happy for diamond handed BB apes all the same.
Great video! It really breaks down exactly what short selling is so anyone can understand! It also shows how market manipulation can create a scary environment in which money can be made, but knowledge of the fundamentals can still be completely useless. How sad...
@@coffeezilla4967 Hey look, it's the fake 2 cents!
"You're such a boy scout!" 😂😂😂💀
Somebody has been reading up on the Ferengi Rules of Acquisition.
The best explanation on the subject for general public.
Congratulations! I love your channel, this should be required in school!
Then people would be able to be in power, not have to work for the rich...
@@KimberlyLouvin They could also just learn to start their own business. It's easier than ever to learn at least. You just have to have the mind for it and temper your expectations accordingly. 😅
I love how this video came out on a day when GME went up 10% again
You should see AMC.
This is just the begining
I miss AMC. I know it will come up like 3 months ago.
I've never heard of "borrowing," a stock.
I literally stumbled onto my family tree back through the year 80 A.D. by googling one great-grandfather's name. This was when Google was new and I just wanted to Google something to use it. My ancestor in 80 A.D. was a Viking. I knew of my ancestry from 4 countries. And, I only knew OF it; I didn't know names and dates... Now I know I'm from about 20 different countries, some of which no longer exist. It was amazing to find.
This confirms the Fin TH-cam Universe
thanks for this video, because the whole gamestop incident was the first time i'd ever heard of "short selling," and i was curious to know how it worked. having this illustrated example helped. (lol at mila getting rich. 🤣🤣🤣)
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Leave the cats alone! Lol. Great video!
Dude! It only took you 100 episodes to find a shirt that fits.
Congratulations on the 100. Keep the good stuff coming. ✌
Imagine if they went into the companies lending out MORE shares than were available, and you got a real mess!
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The perfect collaboration 🤩
Fab collab by two youtubers I highly respect! Great video yet again
Oh snap! Two favorite TH-camrs in one video!
Awesome video very educational. Where have you been??? I've been looking forward to more financial information videos.
This has to be the most informative video you have released to date! I know all your videos are, but this is really top notch!
This is some legendary stuff
Love the Plain Bagel Cameo as I watched both all of your videos. Really recommended financial education channels.
Hedge funds and short sellers are so scummy, the GameStop situation was amazing to watch unfold
It's still unfolding
Allow me to introduce you to AMC
Short selling is valid if a company is not disclosing their financial situation correctly as there are a lot of mismanaged companies. However it is scummy when you're legitimately struggling and hedge fund vultures are trying to eat you alive.
Thank you guys for doing another informative video on short selling and being cautious about this kind of investment. Great to see the Plain Bagel doing a cameo. Great channel on explaining investing.
I'm here via The Plain Bagel. Great video! I think this has been the best explanation of short selling yet (for me).
5:38 "At this point, Jannik admits that he is no Nostradamus."
As if Nostradamus was any good at predicting the future, either.
This was really well done and clearly explained. Great video!
Two cents the type of couple to take a romantic walk on the beach with a metal detector.
Huge miss not mentioning the phrase “loss porn”
So much envy against the bigger players. Short selling is a part of the capital market that needs to exist. And while funds can’t collude to artifically deflate (or even inflate, tho noone is upset by that) the price of a stock, NEITHER can small individual investors collide to do a short squeeze. It’s either an unregulated competition, either the forum investors also are guilty of collusion to manipulate the market also.
It’s too risky to do for most people. And you’ll only make enough money to justify it if you short sell a ton of stocks.
Are you telling us it would take a large position size to justify all the research to do the trade
I was not ready to find out how Julia feels about cats like that. I honestly can't explain the hurt
Richard Bagel!! You made the PBS big leagues!!
Awesome quality as always, thanks for making these amazing videos :) I alredy know quite a lot in the field of investing but these pieces are still very enjoyable to me
W•H•A•T•S•A•P•P
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Make a note 📝 to my broker Sarah on a good crypto trading investment.
My two favorite channels!
Can't wait for this! 🤓
Are those house earrings?
That was an excellent explanation!!! I’ve been struggling with stock options. That may be the first step to get me going
This is the greatest crossover since the avengers
My two favorite finance channels. Awesome :D
Excellent video! I was wondering how 'short selling' worked
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The analogy in the beginning of the video is more like buying naked Put Options as opposed to directly short selling a common stock.
There is a basic investment strategy that can be phrased as "buy the dip." This doesn't mean go all in while an asset's price is going down, it means average in as it goes down and/or buys as it settles.
Further, the strategy is much safer to use in a bull market or a stagnant market, where the general trend is up or sideways (as opposed to the bear market where the general trend is down).
With that being said F/o/ r T/r/a/d/i/n/g and p/r/o/f/i/t/s m/a/k/i/n/g W/h/a/t/s/A/p/p m/e
W>
+.
There's always room in the winning investors corner
Can you make a video about day trading? The google search seemed so simple/straight forward. It feels there must be more to it.
Cool collaboration 😎
Is there any chance you guys could do a video on calls and puts? I was trying to explain the concept of covered calls to some friends and they didn't find my explanation to be very good. I was able to turn decent profit over the course of a week just trading covered calls on just 200 shares of growth stocks I already owned and they want to do the same but are nervous to do so without fully understanding what's going on with it. Perhaps this could help others who also hold growth shares to get more money out of their shares.
If you want to test your 'shorting skills' simply do virtual shorting. You won't make or lose any money but you'll soon see if you are destined to become the next Wolf of Wall Street or end up on skid row! Same with share dealing.
Excellent crossover!
This is an excellent video on short selling
Love seeing granny in rap bling jewelry!!
Your videos are awesome. Always informative and they have entertainment value. Keep up the good work 💪
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I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
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Please do a collaboration with Ben Felix too.
Wonder if the recent hacks are really cover stories the predictable inflation
Wonder if there's a pyroclastic magma flow about to engulf the Earth at any moment, a giant asteroid will hit us shortly with no way to divert it in time, or if the next global plague will happen in the next several years. Wondering is great isn't it? 😅
You two are awesome!
Meh, people... don’t trust ways to get money quick, because it often bite you in the butt. But maybe that just me, I’m hate being risky.
At 4:53 is the profit 197% or 97%? The original $500 was returned which would be break even, not 100% roi?
A safer way to short a stock or etf is to buy an options contract. Dont put all your money into one though because they expire and you could lose everything.
The safe way to do it is to own 100 shares and simultaneously buy a put contract if you think it could drop. It works like an insurance policy. The longer the contract, the more expensive it is.
Have been getting this Crypto questions lately. For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
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There was an actual Tulip Market bubble in the 1700s
My question is who are the Milas that are buying stocks from short sellers? Why would they want that stock knowing it's being shorted? Those are just retail investors that are cool with buying a stock at such a high price already?
I wish you had also looked at the positive role short selling plays, looking for financial malfeasance and fraud such as Enron.
But the negative component outweighs the positive one.
That intro was some the funniest acting Ive ever seen on a YT explainer
Have been getting this Crypto questions lately. _For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
He's available with the contact below on *what's App*
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Two Cents definitely have 💎🙌
Thank you. excellent explanation
Great collaboration 👍🏾👍🏾
@@twocents2034 🧢
they said infinity war was the biggest crossover
thank you for this informative video=))
My financial literacy class watches your videos and we love them💛💛!!! Could you say high to Morgan highschool at the end of the next video??🙏
Not the kitty! 😂
Very nice video....very simple explanation
Thank you for such an eye opener on how crooked Wall Street is, technically they can break legit companies by short selling them. That is the sad story of our free market system, the only real affected are us, the working class. We need to demand that finance be a mandatory subject in our education system, specially in public schools.
They can't break anything, share prices have no effect on the company, if it's successful it will keep paying dividends and being valuable to everyone that owns it.
@Two Cènts. begone bot
@@freshrockpapa-e7799 exactly
Absolutely amazing explanation...! kudos
Have been getting this Crypto questions lately. _For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
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Okay, I think I understand the process of short selling, but why would a brokerage firm loan stocks instead of selling them?
Because the person that is borrowing them wouldn't buy them. They want to sell it, it makes no sense to buy something just to sell it. The lender gets the interest and the broker gets a fee.
I thought this was about short sales, like real estate...
Make a note 📝 to my broker Sarah on a good crypto trading investment.
W•H•A•T•S•A•P•P
+•1• 4•4•2• 3• 0• 1• 4 •4• 9• 0•
Holy cow! The Plain Bagel guy looks exactly like what the identical twin brother of my Asian friend would look like if he had an identical twin brother, only with red hair. Creepy.
Why are we not actually take into account the real viability of Gamestop as a company in a market where fewer and fewer people are buying physical copies of video games, though? It’s still, overall, doomed. It cannot consistently hold the gains made from the short squeeze and continues to bounce up and down instead of actually growing further.
HODL!!! #AMC #GME
Not all squeezes are short
Have been getting this Crypto questions lately. _For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
He's available with the contact below On *what's App*
+ ❶ ❺ ❻ ❸ ❷ ❷ ⓿ ❹ ❸ ❷ ❽
OMG the collab I never expected.
Have been getting this Crypto questions lately. For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
He's available with the contact below on *what's App*
+ ❶ ❺ ❻ ❸ ❷ ❷ ⓿ ❹ ❸ ❷ ❽
Okay, you know the markets are getting weird when Two Cents is talking about short selling.
Have been getting this Crypto questions lately. For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
He's available with the contact below on *what's App*
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Tldr: become the brokerage
Can’t wait
Well explained 👌 👌
How those collage professors denying reality of Trickle down economics explain Thrift stores or used car deals or . History of the car only the super rich could afford a car that kept breaking down. What info structure quality after only a hand full got rich off the gold rush .
Thank you for this video! It helps me understand both sides of my student loans. How they are profiting off of me, and how I can possibly and hopefully profit to pay them off and be able to get on with my life. My goal is to be able to spread enough free yoga to help us all manage the anxiety of the market (see my channel and website) that I can eventually monetize my own gifts to the world like you all have done. I love your videos!
@Two Cènts. spammer
Except this video wasn't about student loans. 🤨
Maybe encourage others to start their own business also instead of inflating people's anxiety with no possible solutions. I'm not saying you should advertise your yoga business every comment thread either. 😅
@@megamanx466 Maybe only comment if you're going to be kind, not to insult people? Student loans are profitable due to the interest earned being invested by hedgefunds/others. Maybe you don't see that or think about it that way. So, if I can use strategies learned in this video to pay back my student loans AND use a side-hustle to do so...why would I not ? We live in a capitalistic society that hustling is a necessity for many. Don't hate the player, hate the game.
@@megamanx466 So... if you're going to have an account simply to try and troll people, maybe consider using your time in a way that makes the world better, not just to be rude.
@@KimberlyLouvin Ditto with you also, yet maybe less fear mongering. 😁
woah!? one of the best collabs ever!
Have been getting this Crypto questions lately. For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
He's available with the contact below on *what's App*
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How much is this plain bagel for?
Two cents only.
Underrated comment. 👍🏼
Have been getting this Crypto questions lately. For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
He's available with the contact below on *what's App*
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So what you're saying is short crypto.
is that a fresh tattoo..🤔
Eeeeyyyy plain bagel 😂
like the "Black Monday " movie
Have been getting this Crypto questions lately. For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
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NOBODY BECOMES A MILLIONAIRE OR A......BILLIONAIRE BY WORKING FOR OTHERS AND DEPENDING ON THEM, GOOD INVESTMENT BRING MILLIONS OF DOLLARS, AND CONSISTENCY BRING BILLIONS, THE MARKET IS ALL ABOUT BTC AT THE MOMENT NOW..............
You're right ma,
That is why I had to start forex trading 2months ago with Mr Jackson Williams and now am making benefits from it.
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My first investment with Mr
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over $44,000 Us dollar
O' Yes I'm a living testimony of Mr Jackson Williams.
Short selling is the worst form of gambling, because your potential losses are infinite.
Have been getting this Crypto questions lately. _For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
He's available with the contact below On *what's App*
+ ❶ ❺ ❻ ❸ ❷ ❷ ⓿ ❹ ❸ ❷ ❽
Top 10 best anime crossovers
I used credit card debt to short microsoft in the early 90s. Now i owe tens of millions. 😂
Have been getting this Crypto questions lately. _For trading guidance and daily picks
I will refer you to my trade analyst to make good 200% income trading, go more on digital assets.
He's available with the contact below On *what's App*
+ ❶ ❺ ❻ ❸ ❷ ❷ ⓿ ❹ ❸ ❷ ❽