How to Short a Stock - Watch Me Do It! (Day Trading For Beginners)
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- เผยแพร่เมื่อ 17 มี.ค. 2020
- Learning how to short a stock is something all day traders need to know how to do. If you want the most flexibility and opportunity to make money online day trading stocks, "shorting" is a strategy you must understand and use. The reason why you need to learn how to short a stock is because it allows you as a day trader to make money when stock prices go down in value. When I was new and a beginner to day trading, this was a very strange concept and did not really make sense. If you are someone who is just beginning to day trade stocks and are a bit confused by this idea of "going short", you're not alone. In this video I will short a stock using my trading platform so you can see just how the numbers work when you are short a stock. Ready to take your understanding of shorting to a new level within your journey of learning to day trade? Let's go!
A Behind The Scenes Look at "Shorting" - see it HERE (claytrader.com/videos/shortin...)
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What a guy for losing $4.90 to teach us. Respect!
No big deal. My family just didn't eat dinner that night.
@Tyson Boynton :-)
@@claytrader Hahahahaah!!! respect bro! :D
@@CelestialxPanda :-)
@@claytrader oh no haha good one 😅
finally, someone who actually shows HOW its done and not waste people's time talking how they made millions and drive ferraris but DO NOT help you at all...
Thanks for watching! Glad it helped
@@claytrader DO you have one for Swing trade to 1month and 3 to 6months
Thanks for the help
@@WitchLuw claytrader.com/takecontrol
@Joseph Court glad you enjoy the content
100 percent right ✅
This is my first time actually seeing an execution of going short. Great Content! No bs! thank you
Thanks for watching
Yes I appreciate the literal step-by-step!
I'm going to be great at this!!! Every time I buy a stock the price tanks. I bought blue Chip stocks and the market crashed.
HAHAHA I FEEL YOU BROTHER!!!
Stop blaming it on higher forces and start learning how the market works. Nothing is worst than letting yourself believe you were just 'not made' for the market. Ask any trader about their start and I promise it didn't happen through sunshine and rainbows. If you're having a tough time , try paper trading. Real stocks. Real success. Fake money. Good luck (:
hahaha John... have fun getting rich!!!!
John Dadds short everything!!!!
Yup..like clockwork
Hey Clay. I’ve been trading for 6 months now and just last Friday it was my first time shorting a stock. Realized that in order to make a living off trading that I would need to learn how to play be both bullish and bearish. Great videos!
Thanks for watching! Welcome to the world of shorting!
How you doing now man with trading?
This was just perfect! Took a while for me to wrap my head around this concept but then this video made it absolutely clear. Thanks a ton!
Glad it could help!
This was a great video showing the pitfalls and perils of shorting. It had my 100% undivided attention throughout. Great job!
Thanks!
perfect video, didn't miss anything. people look at me like I'm a ghost when i tell them about shorting.
lol... the "ghost face"
You’re amazing dude just Bcz you lost that 4.90 for us to learn god will give you 4900. My prayer on you for that
Thanks for watching!
Amen.
Amen to that brother
I really needed this video, as I couldn't get my head around the procedure to follow, to short a stock.
This has clarified what I needed to learn, (after watching many of your live trades where you make a killing on shorting stocks).
Keep up the great work, Clay. :)
Great!
Thank you for the video. Question: when shorting a stock, do you have to poses that stock or you borrow it? Like your 10 At&T stocks, did you had them in your portfolio before? Thank you
This should help claytrader.com/videos/shorting-going-short/
This is great. Thank you so much for the virtual learning. You’re the BEST!!!
I don’t know anything about shorting stocks. Is there a limit number of shares when you shorting? And do I have to buy back shares before the time stock market closed? Thanks
Yes, shares are limited. No time frame.
@Clay. Great training. It was awesome to get to see it LIVE with a real trade that went wrong! Everyone else does replays on sims and they ways go how they're supposed to. Great job on showing how shorting could blow an account up if it went parabolic. Thanks again
Thanks for watching!
Dude, this probably the best video I have ever watched on shorting - your practical video was outstanding - I just subscribed
Welcome aboard!
@@claytrader clay! Can you help me with the doubt I’ve posted?
I’m not getting how and where I keep the profit difference . Thanks!
@@88tdc88 this should help: claytrader.com/videos/how-do-you-make-money-shorting-a-stock-ill-try-to-explain/
Thank YOU!!! This is the best live video for shorting I have seen and I have been looking, some videos out there do not explain as clear as you. Great Teacher. I am starting in this world and this video was very helpful.
Glad it was helpful!
Hi, thank for your videos. What softwares you are using in the video?
Here ya go claytrader.com/resources/
I just watched what short selling is in your video 3 years ago. I needed this video. Thanks! You're still wear9ng the same shirt too😆
It's a great shirt!
Clay, I want to thank you for all of your help in teaching me how to trade. I learned a lot from you by studying your videos and subscribing to your channel. I use to only invest in mutual funds but then started studying trading stocks in 2016 and opened my first trading account in 2018. Learning how to short was icing on the cake, lol! I actually shorted UBER Monday at $20 and it's literally at $16.45... I'm over 17% on this swing trade and it feels great! Thanks again ~
Well done! Congrats
I dont know how to do it but am about to find out. I opened my account 20 days ago and have beat the market by at least 300% every day but 2 and yesterday beat it by 850%.... I am a dropout and blue collar af and have turned 160k into 270k and have never bought or traded. Just observed human habits and limitations over my lifetime and its retarded af to not go in on the market right now. I am using airlines and oil as they bounce around. Buy cheaper one day and sell whenever they bounce up which is weekly right now. My last trade was on UAL (which i only owned for 24 hrs )and made 4$ a share on 4000 shares when I sold this am. I also knew they would go down too when I sold and I wish I had known how to capitalize. I also knew my OXY and HAL, which had done so well the last 3 weeks were gonna tank, so I sold them last week and they have slid ever since. Both decisions based on oil prices and same logic applies to both my energy and airline buys but one one benefits from higher prices and one from lower.
@@Sceneyour congrats, but you're playing with fire... please don't burn yourself!
@@claytrader hey i realized that. I couldn't get any help from a broker. My ex wife stole my inheritance from my parents and sis who died in a fire in 2014 . It was meant to insure I could raise my kids myself if i had to. She wanted to cripple me as a father and student so while I was in nursing school she filed but only after I paid our joint taxes for 2018 (32k) and then hired a lawyer. Had to sell the paidoff house I owned and split it with her. She spent all hers before th collapse on a house and I am trying to rebuild what my parents left me. When she filed I had to withdraw from nursing school for the second time for financial reasons, the first time was because of the fire. I am about to go back and make my parents proud again. I would love some tips and have been watching your beginner vids. I wasn't even using automated sells (stop quotes) or anything. That could have saved me the 24k loss I had on my second day that mounted to 40k because I was trying to avoid a free ride. I made it all back and a lot more and wasn't ever unsure that I wouldn't but I could easily be way more efficient and get a lot more sleep. Tired of watching the ticker all day and realized why everyone had to do coke back in the day before automated or computerized trades.
@@Sceneyour i see....
Thanks for this Clay, what platform do you use? Thanks
Here ya go claytrader.com/resources/
Awesome vid, with skin in the game to teach! Question. How'd you get your positions and orders on the right-hand side like that? You setup looks very fluid and easy to manage for trading than TOS' default setup.
How? I mean, that's just the way the platform is set-up.
This is an excellent video! Nothing like a visual representation to put things into perspectives. I now understand shorting. Thank you!
Glad it was helpful!
I started shorting and I love it so much easier to know what's gonna go down
glad you're having success
@ClayTrader - what trading platform do you use? is this the online broker platform you select or a seperate platform? Thanks in advance.
Here you go: claytrader.com/resources/
Thanks for tghis Clay, could you explain the main difference between shorting and putting an option put? I only know that on puts there is a premium involved and a time frame on it? which short doesn't?
All of that (and more) found here claytrader.com/takecontrol/
This is the first ever video I have watched how to short a stock. Thanks
Hope it helped!
i havnt laughed so hard thanks for the lesson
I'm glad my "pain" brought some comic relief lol
@@claytrader thank you and I just subbed and liked the video . Both comical and a a warning
@@ahmadshahhassanzada2661 welcome to the channel!
@@claytrader thank you for the contents
@@ahmadshahhassanzada2661 cheers
Great video Clay. I'm new to trading...I know close to nothing, looking up terminology as I go along....what does 'stock" mean? Kidding but not by much. How do you pick stocks to monitor and then short or long? Research ?
These videos should help claytrader.com/video/trading-101/
Thanks for the great tutorial, what trading software do you use?
Here ya go: claytrader.com/resources/
Clay every day I realise how little I know, thank you for the info.
I am 83 and still learning, I am trying to build up a nest egg for when I get old.
You can do it!
To John Smith: At 83 years of age, would you have not been more patiently profound in your purchasing of the prevailing markets, erstwhile, as the Vanguard or Fidelity stock indexes funds that require little turnover and reduced tax burdens? Trump had accomplished the impossible -- In the midst of a pandemic, he had hit record highs, 30K on the Dow, and expedited COVID vaccines in *warp speed!* Trump trumpets tenaciousness.
"Lets see if it hits 5. Wow this is good stuff."
Lol
:-)
Thank you so much! You have a great sense of humor. Very fun to watch. My first short video. You did a great job explaining. I understand it perfectly. Liked, and subscribed 👍😁
Glad it was helpful!
Thanks for the detailed video. Can you explain if there is a chance of liquidation if the price go too high and do you need margin for this of trade?
Yes. There is risk of margin call.
Not gonna lie, I really enjoyed this video.. quick question though, did you lose 4.90 per share? Or just 4.90 overall? Also, what trading platform are you using? Thanks clay!
Overall. What I recommend = claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/
I went for cookies to see this video, was really exciting!!!!
Thanks for watching!
I love how clean and simple your trading platform looks vs Think or swim, Yours has everything you need at just the right size in the perfect spots on the screen whilst Think or swim is either cramped and jampacked with too many things, no easy navigation or way to just purchase stocks like you can on light speed. Definately the most frustrating thing about being a new trader is the platforms we have to try and learn how to use.
More info on what I use claytrader.com/resources/
Thank You. What’s the difference between CFD shorting and Stock shorting and which would you recommend more
CFD's are illegal in the USA, so I can't comment much on them as I'm not sure.
😂 he did not expect that turn out. His voice started to crack 🤣. But like I was taught, keep emotions out of it. Sorry to see, bud. Your videos are 👌👌👌👍🏽🙏
I mean, I did specially say "I'm shorting at a random spot"... so can't say I was caught too off guard lol
How would u get out of this if u did this kind of mistake would u keep on losing money or is there a way to get out of this and can u buy and sell at the same time ur shorting
What do you mean? I showed you how to "get out". You "buy".
Hi Clay , thanks for the useful video! was wondering why the order to sell was "missed" the first attempt?
Price changed before I could click the button.
Hi clay, thank you so much for your videos. It is very helpful.
I have question: what do we do when one wants to sell sell 25% , 50% , 75% and 100%
whether in up trend or down trend?
thank you in advance
What do you mean?
I'm sure you have made tens of thousands this past week with the market crash! Congrats.
It's been a wild ride!
ClayTrader Are your shorting more than going long?
@@tylerpetit33 i'm doing whatever i believe gives me an edge in the trade
ClayTrader GL this week. It’s going to be interesting!
You could have spent one minute at the beginning of the video explaining to the people that when you short you borrow first then you sell and wait for the price to drop then you buy again and return what you borrowed. Otherwise you are confusing people.
Thanks for the thoughts.
@@jeffdunstan Cheers
Yeah I was confused on that, since I'm new to this. Thanks for this comment, and great vid regardless Clay.
@@stockgeek4449 thanks for watching
Agreed...I wasn't sure if Clay was already holding the stock, if you can put a negative order in, or what the hell was going on. I get that shorting means when the stock falls, you gain money because you've set a certain level you want to sell at...but doesn't that also depend on the ask? As much as I get stock goes up, shorting makes money go down, stock goes down, shorting makes money go up...very fundamental, but 0 detail on where, when and how that all works based on what you started with.
Beginner here, I'm learning and instead of buying. I sold 90 shares by mistake instead of hitting buy I saw it loosing and then bought it and turn a profit. Didn't know how I did it till i just saw it -90 in my position??? so I bought it and made a few bucks. Until now didn't know that this was SHORTING. Great video and thanks for the loss(few bucks) on teaching us thumbs up.
Thanks for watching. Glad your trade worked out!
Ty Clay. This helped me a lot. One quick question. Do I hit the BUY button to sell or the BUY TO COVER option. I have SELL, BUY, SELL SHORT and BUY TO COVER.
ty ty
great info
Buy.
Clay you never fail....thank you for another insightful video ! Keep em coming
Thanks for watching!
@ClayTrader what trading platform are you using in this video? I was wanting to sign up for this.
Here you go: claytrader.com/resources/
Thank you for making this video - really appreciate that you held out in order to show a live short trade
Thanks for watching
Thank You So Much for this knowledge! Go blessing you for this knowledge.
You are very welcome
I finally get it. I was totally lost, and was mystified on how you could make money on a stock going down. Thanks Clay, been watching your videos all week.
This should help too claytrader.com/videos/how-do-you-make-money-shorting-a-stock-ill-try-to-explain/
Hiya clay good example of stock going green and oh shit, how long can you keep the short going, are you given a time limit on how long to hold the short. Obviously going as much red as possible, but can you wait it out for the trade day?? Thanks
Watch this: claytrader.com/videos/what-is-a-margin-call/
Hello Mr ClayTrader. Thank you for the great videos. I will be watching more of them soon! My question to you as a new trader is, is there a platform that I can practice on before I actually start trading? I’ve heard good things about “TradeStation”, but it’s a little pricey to just be practicing! So any recommendations that you may have for someone to practice trade on would be highly appreciated!
Who I recommend claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/
Another informative video. Have you ever utilized a straddle on a stock or is that a bit too risky? Thanks in advance.
if you're interested in "talking stocks/trading in general", you are more than welcomed to join my private community - claytrader.com/team/
What trading platform do you use? I just got into the etrade pro platform but it is difficult to set it up like the one you are using. I like etrade though. I trade out of my Samsung cel phone, long and short trades. But I would like to switch. Thanks
This is who I recommend claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/
I don’t see the cb open and such on Robinhood? Is this only available on certain platforms or do I need to be looking at this on a computer instead of an ap?
Not sure on Robinhood. I've never used them.
Is this Tradstation your using in the video? Is TS a direct access broker?
What I use: claytrader.com/resources/
which Software do you use for trading and how much does the software cost ? thanks Clay good stuff !!
Here you go claytrader.com/resources/
Nice my first time. Thank you, how about the cover is it buying back?
Yes "cover" means "buying back".
Thank you for showing us! I appreciate it.
Any time!
Hey good night Clay.. how did you enter into the short trade..to change from the traditional long trade into the short trade..
Like was there a specific button u had to press in order to switch into doing a short trade or do u need permission to do it?
Watch the video. I show you exactly what I pressed
Great video! So the money you lost would’ve been the same gain if the price had gone down?
Btw which platform are you using? Thanks
Correct. What I use - claytrader.com/resources/
@@claytrader I followed the links you provided, thanks. Can you break down in your opinion whether it’s better to choose commissions by share or by trade? If you already have a video just share the link. Please and thank you.
@@stephentoomey1176 that all depends on your personal strategy
What software or application are you using to do all of this ? If I wanted to do it and find those buttons where you press to buy and sell, what type of operating system would i need. Thank you so much
Here ya go: claytrader.com/resources/
Thank you very much, finally I understand what going short means. Do you know if I can do that in the robinhood app?
Not sure.
you cant, but you can buy Put Options, which is "similar"
@@aytradeco thanks for the assistance
Great video! I have a question. Once you short at a desired price, who determines that would be the actual price you committed to shorting at? & also who pays you for that short if you make profit? I just don't understand how you can say for example " I want to short at X price & then someone is willing to pay you all that money". If it was very obvious the stock is about to dump & you made a short trade who in the world would be willing to give you money for shorting?
This should help claytrader.com/videos/shorting-going-short/
Great video Clay - question - so u shorted with 10 stocks that means I can practice with 1 (one) until I get comfy to increase the quantity. Most videos that I have seen they have 100 stocks (Shorts vs Options). Thanks again!
I shorted 10 *shares* on the same stock. Yes, you could do 1 share if you wanted.
Thank you so much for the way you teach! appreciated your time and efforts!
You're very welcome!
I needed this video. All the other videos I've watched never explain what button to push to start your short trade. Thank you very much.
Glad it was helpful!
Very informative and clear video on how to short. Thanks Clay!
Glad it was helpful!
Very helpful thank you! How do you close the position after you buy it back?
Buying it back "does" close the position.
@@claytrader Got it, thanks Clay
@@markf4968 you're welcome
Great video. Do you think short selling is more risky in a downturn? i.e aviation and tourism, I'm thinking of going short on those stocks, but one bit of great news and those shares will take off. Would you put in a stop, bet smaller amounts or just back yourself place the trade?
if you're interested in "talking stocks/trading in general", that's the entire idea behind my private trading community (which you are welcomed to join) which you can find here claytrader.com/team/
@@claytrader many thanks. Will join up this weekend.
@@GRIFF22 i'll see ya soon then!
Hi Clay , what broker and trading software are you using here ?
Here ya go: claytrader.com/resources/
Hi Clay, big fan but late to party. What broker do you use for shorting? Thanks and keep up great vids!
Here ya go: claytrader.com/resources/
Great explanation, I’m glad you actually showed us vs. just explaining it
Glad it was helpful!
Thank you clay! You are a awesome teacher ! I had no idea what is short and how to make profit from shorting. I watched your other video first "what is short" and now this video. I didn't know that to profit in shorting you enter via sell and you exit via buy. Do you have a video in regards "traps in shorting". ? Thanks again.
I have an entire class on shorting that is within my overall program here claytrader.com/takecontrol/
Clay what Program are you using in this example?
here ya go: claytrader.com/resources/
Do you have to own the stocks in a particular company before you go short or is it like a credit kinda deal through your account broker?
Nope.
Hey, great video. may i ask what software are you using?
Here ya go claytrader.com/resources/
This video was fantastic. Thank you.
Thanks for watching
HI Clay do you have a similar video but trading futures?
I have this claytrader.com/video/futures-trading-101/
Hi, what program of trading are you using? thanks.
Here ya go claytrader.com/resources/
Man this video was amazing!!! Thank you so much for posting clay!!
Glad you enjoyed it!
Love the content! I had a question. I am bullish on a company and own about 3900 shares, if I think there’s a bearish market I “short” it but not really short Bc I’m not borrowing the shares and I want to get back in to the company so I will rebuy at a profit hopefully. Is this the same thing?
You sorta confused me...
thank you for this GREAT information and laughs, I have been looking for a video like this! mostly everyone just shows you the TA of when to enter or exit a short trade, so thank you for just showing the process!
Glad it was helpful!
thank you for explaining . the going short dynamics.
You're welcome!
which trading platform are you using to do it? (Im watching video now) thanks
Here you go: claytrader.com/resources/
Clay is there a site to get an accurate depiction of short positions that exist? And also do, ' can ' short positions affect the relative strength index or am I nuts. ? Gratz
There are sites with "guesses".
Hey clay, do you short TSLA sometimes? Or do you not trade that stock?
Sometimes I do.
@@claytrader Shorting?
yes
OMG!!! THANK YOU SO MUCH FOR THIS VIDEO I HAve BEEN LOOKING AND LOOKING TO UNDERSTAND WHAT I got myself into lol none explained like you did! I understand! I am grateful!! 🙏
Glad it helped!
Clay How you put the price to sell and the stop limit price in your short operation ? It looks like you just put your limit stop and you sell at market price and to take the profit what do you do in a short ? Can you explain a little about that ?
If I understand right, this video should help claytrader.com/videos/how-to-buy-stocks-part-2-watch-me-do-it/
I really new to all of this and have been watching some of your videos. How do you get started with shorting and what are the requirements to get into that strategy?
You need a margin account.
i got one question, i saw some traders that have to borrow the stocks theyre gonna short before doing the trade, and the broker charges a comission for borrowing thos stocks, could you explain that a little bit? thanks
Good idea for a future video. Thanks for suggestion!
Hey man how did u learn about shorting etc? Did u take a course, TH-cam?
claytrader.com/videos/how-and-where-i-learned-how-to-trade/
Thanks for the video,good learning experience.
Thanks for watching
I really had trouble knowing how to short a stock. This video did it for me. Just watching a short trade go through was what I needed. Thanks
Glad it helped!
Thank you for the great video. I am just curious why didn't you long knowing this stocking price is going up?
Because the point of the video was "how to short"...
what's the program ur using to look at these stocks at teh beginning? im new to this :/ thanks!
Here ya go: claytrader.com/resources/
@@claytrader ty buddy
@@sandler98k cheers
So do I have to have a certain amount of money in my I like I’m buying the stock or no I just have to replace the stocks I’m shorting ?
You just replace the stock.
You have to cover the difference
great video Clay !
Thanks!
Hey Clay can you share what systems your using and how to get the same as what your using it seems so easy to use. Cheers
Here ya go: claytrader.com/resources/
What technical analysis do you use to determine what stock to short? if you short for a couple days, can you put a top loss?
if you're interested in "talking stocks/trading in general", you are more than welcomed to join my private community - claytrader.com/team/