@@kylenetherwood8734 I'm not an expert by any means, but is it possible that index funds are also a bubble? I mean, I keep hearing people say that it will definitely go up, and you won't lose money there, which for me, is kinda alarming
@NostradamusJr. That's what I'm betting on. Lots of folks with lots of money. I expect all the popular WSB stocks to jump. Just hoping BB will be the biggest.
Swole man making smart investment decisions I see you man! My older brother used to talk about you & your channel since 2011 so it's pretty cool seeing you here. I hope you're doing well man & good luck to us both!!
I agree! Everyone else is like reading the Wikipedia description which is very confusing! While this guy is great , I think the cartoon animals talking about what Quantitive Easing (QEs) is was classic
If we had infinite amounts of money to lose, why would we bother investing? Seems like a lot of extra work. It certainly would cut into the time I'd have to spend it.
This was literally the best description of short selling I’ve heard on TH-cam. Finally, someone with a simple explanation with great animations included. Thank you!
I bought a stock that was going up, the moment I bought it, it has been going down for 2 weeks straight.. lol.. if I owned funeral homes, humans would become immortal
Yes that’s cause you probably bought a stock when it was significantly going up. So you probably bought a stock right before a sell off which isnt good
One of the better videos I have watched regarding shorting stocks.....it still surprises me how many people have not watched The Big Short. Keep up the great content!
The one thing I struggled with was how you can "borrow" shares and sell them, and this video covers it VERY briefly, but more thoroughly than any other source I've found. Basically it's like taking out a loan but in the form of shares, as I understand it
The institution that maintains your margin account borrows the shares for you. Since most stocks are held in a "street name", i.e. the name of the institution -- Schwab, or Fidelty or e-Trade, etc., they technically have ownership of most of the shares in their clients' accounts. They can make use of those shares to deliver to a buyer the stock you short. If they run out of shares of a particular stock they can still try to arrange to borrow the shares they need from another institution.
Unlimited only if you want them to be unlimited... That is if you continually replenish your marging account, otherwise your broker will close your position well before you can lose more that what you invested
It would also be interesting to know how high the productivity of these stock traders would be if they were doing value-added work. It seems to me that the only difference between unemployed and stock traders is that stock traders are not paid by the state (unemployment benefit) but at the expense of companies and their workers.
One of the best explanations of short selling that I have seen on TH-cam. I think I’ll stick with long positions and sleep better at night. Thank you plain bagel!
lol, I knew some of it before watching this video so I wasn't as lost. The fact that if many start to buy in can surge the stock, got me doubting to ever short again. =/
I know I finally got it this time: Take a stock worth 1k Sell it for £1000 Make some maintanence fees to the guy your borrowing from - £50 It's dropped to £700 Buy it back at £700 and give it back to the guys managing that portfolio Keep your £300
Don't even bother, there is much more to gain from going long. Why risk money when you don't need to. Just be patient. Buy great stocks now that are beaten down by the pandemic, hold and then sell on the positive news of a promised vaccine. There are many of them out there.
@@fitrianhidayat They all walked away richer though. They'd all done their research and knew that the defaults were inevitable. They had to settle for less, however, because the Banks didn't have the liquidity to pay their bets - a little ironic.
That moment when you thought you had enough of nonsense content, and decide to take the situation in your hands and make a better content so everyone can understand your language, then stumble over this channel and be like...oh ok...maybe is a bit too late, someone made it already. Great content keep the hard work.
This channel is one of the best in its kind. I just spent months going through a lot of videos to have a better understanding of finance, and your videos are clear, relatively short without being too short, and give great explanations about diverse subjects. Thank you for this great content, hope you'll keep making those.
The dividend pay-forward being characterised initially as a cost would confuse people. The reason you pay out a dividend to the stock lender is because your short position value increases 1:1 with the required dividend payout. Thus it isn't a cost but merely a value exchange (they get the dividend from you but you get a higher value short position as the stock decreases)
@@chuckbizzert9098 I went to public school lol! No, I guess I mean it in a broader sense. Like in the ' market place of ideas'. As an institution really is the rationalization of an idea or idea's. And through the stock market one can invest in that. Though I get how it's not really treated or viewed like that.
No that's short and futures and options. Actual investing is fundamentally different to this trading (venture capital is investing in ideas). However, valuation is essentially 'guessing' how the company will perform
The main thing this video sadly does not cover is shorting bonds, which is much, much, much more common than shorting stock due to their capped upside and is basically one of the most important things that banks do to lend money to companies while capping their risk (for example, shorting company A's bonds, to lend money to company B that has company A as their only customer, and pocketing the difference in yield). Similarly, the AAA-ranked mortgage-backed securities in the big short were bond-like securities that normally have very little volatility, have capped upside, are easy to borrow for shorting, any only had a few % yield over T bonds so that shorting them would only cost you a couple % of your investment each year at low risk, but had a huge payoff in the event of a default.
Technically there are stocks with uncapped upside. One thing he didn't cover is reverse splits. Many companies constantly dilute themselves into oblivion(for example biotechs) to fund operations and reverse split to keep the share price above exchange minimums. The gain on this is uncapped. It also applies to leveraged inverse ETFs like FNGD where if you had shorted it in 2018 you'd have made like 1000x your money.
I was confused for an hour about short long positions and the security ownership.. You cleared my doubts completely in this video. Very comprehensive video ! Way to go !!!!
@@nemeanlioness Right. If you lose with the Wall Street mob today they don't break your legs. They just take everything you own and everything you will ever own and then get a tax deduction for their other ill-gotten gains that is paid for by the rest of us suckers. It's much more profitable than the mob ever dreamed and it's completely legal.
Well this was briefly explained and it's honestly as simple as it gets. At least theoritical that is. Basically longs for upwards movement, shorts for downwards movement. And with the market almost always going up it takes a damn long time to start seeing huge digits whereas shorts could do it in half the time or even less. Only thing is long time investing almost ensures wealth, short is gambling all or nothing.
They have an algorithm to decide what company's to short and they were just mindlessly following that module. Bad idea especially if you have a podcast/newsletter that tells rando's exactly what you are currently shorting.
Great information as always, I never quite understood the process of going short until now. If I may make a request for a future video that I struggle to find simplistic information on, the methodologies of calculating the value of a company and hence its stock price. In order to work out what would be an ideal price to look for when attempting the paradoxically impossible task of buying low.
“You can lose an infinite amount of money” UNLESS you are well-connected, THEN you can get purchases of the stock frozen, forcing the stock price down and scaring those who bought into selling at lower and lower value.
thank you for making long and short very clear. although i do not invest in stocks AND SHARES i am interested in learning more about such complicated investment tools and strategies.
I have never understood how this became a thing. It feels like there should have been someone way back when who told people to f off when someone said they wanted to sell stock they don't own.
Like when people sell property they don't own? You know, like their houses? When people sell products/services they don't own (which is most people, ie they haven't paid for them yet, but will pay later when then sell them).
This isn't anything but dropshopping a speculative price. As the other poster said when people sell their homes that aren't all the way paid off, they don't own it the back does.
Something interesting to note is that you can short financial assets without the associated costs using derivatives such as CFDs. This also comes at a large amount of risk however, as CFDs utilise large amounts of leverage. The 'stop loss' feature comes with gap risk. There are also Put Options in which you can only lose the premium you pay initially.
Thank you for making this video! Im new to investing and I once thought that you can owe more money than you invested when the stock falls and that this is the only way to invest.
@RNIK Sorry to burst you bubble but a bunch of other hedgefunds are also helping the Redditors but even more people have started shorting it so both sides are going to get slaughtered. The daily cost of shorting it is up to %50 now and it's normally only 1%, that's how many people are still trying to short this stock.
@@parker469a Well, the redditors are actually the ones winning. Whether they make money or lose money it doesn't matter to them. It's not about making $, its about bankrupting and shutting down major hedge firms. By doing what they're doing, they've essentially transferred wealth from the Elites to everyday people by nearly 100 billion dollars. I don't like socialism and the transfer of wealth by government, but THIS?? Oh, I can get behind this. Matter a fact already have! GME all the way! never pulling it out! MAKE THEM SQUEEL!!!!!!!!!!!!!!!!!!!!
@@curtisjohnson2433 Most hedgefunds are mostly older people's 401k retirement funds and the only people who will win on this in the end is other hedgefunds. Well and anybody who bought in at 10 and dumps at 340 a share. I don't actually expect to convince you of that though so good luck.
Dude that company is so volatile. It closed the day today almost surpassing it's highest value of all time. I wish I would have bought at 300 USD, but I went into real estate instead for tax write offs and having someone pay for my retirement. Nonetheless, I hope Tesla keeps on doing its thing
Great video. This is why I went with SPXU, leveraged inverse ETF. The market rallied unexpectedly before it crashed. But I was able to ride it out indefinitely even though I was down 30% at one point. Plus, the S&P 500 can only rise or fall a limited amount.
For a new person just starting out in the world of crypto . This video really is done well keeping it simple and the explanation is easy to understand . Thank you very much !!!!!
Great explanation. I love the detailed perspectives and the examples given. :) My observations have been that short-sellers are always on the edge of things: any announcement/news might send them in a "panic" move. Often, in margin trading, the house is always the winner because it not only collects fees and interest payments, but it can also liquidate your position through collusion with other (bigger) investors at any time. All in all, short selling is a strategy that works only for a certain amount of time, mostly to get money/liquidity quickly. Going long and diversifying do offer more sustainable ways to grow your capital.
I came here to learn what all this is about after the whole GameStop thing. Took me a few minutes to wrap my brain around this, but here is an analogy I came up with to understand it: My roommate bought an apple for $10. I borrow the apple from him, promise to return it tomorrow, and sell the apple for $10. If the price of the apple tomorrow is $7, I'll spend $7 out of the $10 I received from selling the borrowed apple, and keep the $3 change. If the price of the apple tomorrow is $100, I'll have to spend an additional $90 out of my own pocket in order to buy the apple back for my roommate, who now owns an apple worth $100.
Great video. I've had a few people explain short selling to me and still couldn't understand it --- until now. Maybe it's the teacher. I'm certainly not going to blame myself!
This taught me a lot about short selling, especially about the fees and margin associated with the strategy. The forced position closure and pressure from the broker's side also seems risky too. But the infinite potential loss feels kind of biased and gaslighting imo. Just a single stop loss and proper risk management would solve this. Explaining the severe hypothetical risks without mentioning that there are factual ways of resolving them...feels intentional on the content creators part. But thanks anyway for explaining short selling. 🙏🙏🙏
I just finished The Big Short. It's got me more intrigued than ever on how our economy/society works. I remember when 2008 happened. But I was too young to understand it as I was just entering my adulthood. Nearly 14 years later after learning about everything else that's fucked up in the world, that movie was the Cherry on top. Like Vinnett said. ...
What are some companies you've thought about shorting? Knowing the risks, would you go through with it? Let me know!
The Plain Bagel Co. Lol
@@RicardoVladimirWong you shut your mouth
I was watching some of the REIT companies.
@JustAnotherWin oh I know I was just wondering about them cause there seems to be more and more vacancies I'm noticing in the Canadian cities
I shorted GameStop earlier this year, made a handsome profit!
I should start shorting because every stock i pick goes down.
I should go long because every stock i short goes up
Bogdanoff won't be happy
I know it's a joke but you should just buy index funds
@@kylenetherwood8734 that's the second time i heard that. I have an ira so maybe i put it all in an index.
@@kylenetherwood8734 I'm not an expert by any means, but is it possible that index funds are also a bubble? I mean, I keep hearing people say that it will definitely go up, and you won't lose money there, which for me, is kinda alarming
Headcount: who's here after $GME??
Gotta educate my smooth brain to get that first wrinkle
Same
Eventually, it's going to come back to earth!
@NostradamusJr. That's what I'm betting on. Lots of folks with lots of money. I expect all the popular WSB stocks to jump. Just hoping BB will be the biggest.
@@insertname383 made me spit out my coffee my dude. Best comment I’ve seen on TH-cam, period.
By far the best breakdown of shorting on TH-cam.
Swole man making smart investment decisions I see you man! My older brother used to talk about you & your channel since 2011 so it's pretty cool seeing you here. I hope you're doing well man & good luck to us both!!
@@EnergeticGiraffes Appreciate it man! Super cool about your brother. Hope you’re both well 👊🏼
I agree! Everyone else is like reading the Wikipedia description which is very confusing! While this guy is great , I think the cartoon animals talking about what Quantitive Easing (QEs) is was classic
you hot
My brain can’t comprehend any of what investor b does
You could lose an infinite amount of money THEORETICALLY. Looks like the guys at reddit are really testing that theory.
LMFAOO
They aren’t the one testing it. The hedge farms are.
If we had infinite amounts of money to lose, why would we bother investing? Seems like a lot of extra work. It certainly would cut into the time I'd have to spend it.
@@thedalillama I don’t know talk to the farms that lost 20 billion in an attempt to make GameStop fail faster.
@@TNTITAN
How does shorting a stock make a business fail. I keep reading that, but it wasn't explained in the video. Sounds like you know.
This was literally the best description of short selling I’ve heard on TH-cam. Finally, someone with a simple explanation with great animations included. Thank you!
Had to come watch this during the current $GME short
same
Same here
I bought a stock that was going up, the moment I bought it, it has been going down for 2 weeks straight.. lol.. if I owned funeral homes, humans would become immortal
Am dead🤣🤣🤣🤣💀💀💀💀!
Same bro!
If you ever want to buy some stock tell me first to buy some so it will fall crazy in it's history and you can buy it cheap
DO IT
Hahaha🤣 i can feel ur pain bro😄
Yes that’s cause you probably bought a stock when it was significantly going up. So you probably bought a stock right before a sell off which isnt good
POV you're here because of GME and wallstreet bets
Damn skippy. I'm too stupid to read it. I've gotta watch a video 10 times to get half of it.
😂😂😂😂
Anyone got other videos to understand more about this?
Yep
@@MiguelLuna1 look up derivatives and how they work on youtube
2008 : The Big Short
2021 : The MEME Short
More like the GMEME short
Perfect explanation. So many videos out there telling you how to press buttons on a computer, rather than explaining the whole process in its essence.
Who’s watching this after GameStop stock blew up
☝🏽
And amc
Occupy wall street, by taking their money and moving into their offices.
im here
This guy
One of the better videos I have watched regarding shorting stocks.....it still surprises me how many people have not watched The Big Short. Keep up the great content!
I've watched it, I knew they had big risks, I didn't know it was that big
The one thing I struggled with was how you can "borrow" shares and sell them, and this video covers it VERY briefly, but more thoroughly than any other source I've found. Basically it's like taking out a loan but in the form of shares, as I understand it
The institution that maintains your margin account borrows the shares for you. Since most stocks are held in a "street name", i.e. the name of the institution -- Schwab, or Fidelty or e-Trade, etc., they technically have ownership of most of the shares in their clients' accounts. They can make use of those shares to deliver to a buyer the stock you short. If they run out of shares of a particular stock they can still try to arrange to borrow the shares they need from another institution.
I came here to understand how one can borrow and sell also
@@Katlick it’s no different than borrowing $500k from a bank and “selling it” to a homeowner in exchange for their home.
@@mobilegameclips5628 And what are you giving back to the bank is such case?
@@guyeshel9316 um money? its a loan
you have to pay an interest fee on shorting because you borrow, if you didnt it would be free money.
Best explanation I’ve seen on TH-cam yet and I’ve watched a log of videos. This is by far the easiest way to understand shorting.
Who's here during the GME short squeeze?
Shorting stocks can be lucrative but it offers limited profit with unlimited losses 🤷♂️
Unlimited only if you want them to be unlimited... That is if you continually replenish your marging account, otherwise your broker will close your position well before you can lose more that what you invested
This is if it is not shorting Sears stock!
It would also be interesting to know how high the productivity of these stock traders would be if they were doing value-added work.
It seems to me that the only difference between unemployed and stock traders is that stock traders are not paid by the state (unemployment benefit) but at the expense of companies and their workers.
Stop loss
Came here to understand whats going on with Gamestop's stock. LOL
Did you understand
@@HUNTER-ox2of Oh, I understand 🖐💎☝
original
Me too lol
Still don’t get it
One of the best explanations of short selling that I have seen on TH-cam. I think I’ll stick with long positions and sleep better at night. Thank you plain bagel!
Finally I understand how a short works! Great job keeping it simple. Thanks you so much!
After a few years my shorts are usually too worn out to sell. I just chuck them in the bin.
Nice. Your kids must love you lol
I'm lost. I need to watch this 10 more times.
lol, I knew some of it before watching this video so I wasn't as lost. The fact that if many start to buy in can surge the stock, got me doubting to ever short again. =/
I know I finally got it this time:
Take a stock worth 1k
Sell it for £1000
Make some maintanence fees to the guy your borrowing from - £50
It's dropped to £700
Buy it back at £700 and give it back to the guys managing that portfolio
Keep your £300
DEEGE GAMING u missed the 50 bucks of the fees on your total lol
1:00~2:35 is the crux
Don't even bother, there is much more to gain from going long. Why risk money when you don't need to. Just be patient. Buy great stocks now that are beaten down by the pandemic, hold and then sell on the positive news of a promised vaccine. There are many of them out there.
The fact that your losses are unlimited inhibits me from short selling.
I like the potential of unlimited gains better 😊
Made you realized how crazy those guys in "the big Short" were...
@@fitrianhidayat They all walked away richer though. They'd all done their research and knew that the defaults were inevitable. They had to settle for less, however, because the Banks didn't have the liquidity to pay their bets - a little ironic.
However, how often do.you see the theory play out?
Right?
I like how perfectly this video is placed.
June 2019, providing an example that the market will crash over the next two years and look where we are
I have heard this explained many times but couldn't understand it. But after watching this video I finally understand short selling. Thank you!
Watching this after G$ME and $AMC is going crazy 🚀🚀🚀🚀
GME is why I am looking this video up.
Thanks for letting us know
@@dankenlightenment8903 you have also helped me explain what a Short Sell is. You have been very helpful.
recommended is why I am here
I'm guessing you're sitting pretty on AMC at the moment 😉👍
@@jay-lm4we Hell ya, I only have 42 shares, but some is better than none.
That moment when you thought you had enough of nonsense content, and decide to take the situation in your hands and make a better content so everyone can understand your language, then stumble over this channel and be like...oh ok...maybe is a bit too late, someone made it already. Great content keep the hard work.
1.5 million views
clearly deserved as much subscriptions
thanks pal, your work is crafty
The fact that even if English isn’t my mother tongue, I understood the topic speaks by its own. Great video 👌🏻
In late 2019, those who shorted Tesla are crying the blues...
I’ll have you know someone recently became a millionaire from shorting
Tesla.
He was a billionaire before.
@@jerry3790 lol
i hope hope all the investors who short tesla go bankrupt, that'll be a sight to see.
i dont know man you just need to know how to pull out ( ͡° ͜ʖ ͡°)
Elon Musk must be so happy. I read how much he hated those short sellers
This channel is one of the best in its kind. I just spent months going through a lot of videos to have a better understanding of finance, and your videos are clear, relatively short without being too short, and give great explanations about diverse subjects. Thank you for this great content, hope you'll keep making those.
Margot Robbie explained it better i think, but this guy is waaaaay hotter.
dude thats gay
Dude looks like Conan O Brien
we are all gay on this blessed day
nice swap brah
Kinda gay not gonna lie bro
The dividend pay-forward being characterised initially as a cost would confuse people. The reason you pay out a dividend to the stock lender is because your short position value increases 1:1 with the required dividend payout. Thus it isn't a cost but merely a value exchange (they get the dividend from you but you get a higher value short position as the stock decreases)
This explained it really well. I always had a hard time understanding the leveraged position part but this cleared it up for me.
I can't help to think that "investing" is more of a game people play to make or lose money, than it is a way to invest in ideas (corporations).
That is exactly what it is, you just listed the definition. I don’t know where you got the idea of investing in ideas. It has always been a game. 😂
Your thinking of venture capital. Venture capitalists invest in ideas.
@@chuckbizzert9098 I went to public school lol! No, I guess I mean it in a broader sense. Like in the ' market place of ideas'. As an institution really is the rationalization of an idea or idea's. And through the stock market one can invest in that. Though I get how it's not really treated or viewed like that.
No that's short and futures and options. Actual investing is fundamentally different to this trading (venture capital is investing in ideas). However, valuation is essentially 'guessing' how the company will perform
it is the fastest way to gamble away infinite amount of money
Short sellers: ‘exist’
Tesla stock: it’s free real estate
@JOhn Doe You could say his account was...short lived after taking that position.
my options sure did age well though
@Art Of Illusions it will go back up eventually. We just have to sleep for a week or a month maybe.
@Art Of Illusions And now it is going up
@Art Of Illusions and then it will go up. :)
I have been requesting this video for so long and you DID NOT DISSAPOINT!! Thank you so much!!! 😄😊😄
The Hedge funds that are shorting AMC needs to watch this... I don't think they understand the trouble they're in🦍🚀
R u still holding?
“Theoretically”
WSB: HOLD MY BEER 🦍🚀🦍🚀🦍🚀
The main thing this video sadly does not cover is shorting bonds, which is much, much, much more common than shorting stock due to their capped upside and is basically one of the most important things that banks do to lend money to companies while capping their risk (for example, shorting company A's bonds, to lend money to company B that has company A as their only customer, and pocketing the difference in yield).
Similarly, the AAA-ranked mortgage-backed securities in the big short were bond-like securities that normally have very little volatility, have capped upside, are easy to borrow for shorting, any only had a few % yield over T bonds so that shorting them would only cost you a couple % of your investment each year at low risk, but had a huge payoff in the event of a default.
Technically there are stocks with uncapped upside. One thing he didn't cover is reverse splits. Many companies constantly dilute themselves into oblivion(for example biotechs) to fund operations and reverse split to keep the share price above exchange minimums. The gain on this is uncapped. It also applies to leveraged inverse ETFs like FNGD where if you had shorted it in 2018 you'd have made like 1000x your money.
We all know why we're here
We're still here
I was confused for an hour about short long positions and the security ownership..
You cleared my doubts completely in this video.
Very comprehensive video !
Way to go !!!!
I really appreciate your support in helping me grasp this concept!
You sir is such a awesome guy! Just discovered this channel and subscribed right away. Your videos never get boring even in a second.
Who is here after the GME short squeeze?
Simple definition: Shorting = Gambling...with Mob money.
The "MOB" now works on Wall Street and wears tailor-made $1,000+ suits.
@@1notgilty more profit when its legal
@@nemeanlioness Right. If you lose with the Wall Street mob today they don't break your legs. They just take everything you own and everything you will ever own and then get a tax deduction for their other ill-gotten gains that is paid for by the rest of us suckers. It's much more profitable than the mob ever dreamed and it's completely legal.
@@1notgilty not if you trade under a corporation. Just file bankruptcy keep it moving
Congrats, you just described capitalism, the system which threatens our very existence. 👍
Short the short sellers, DOUBLE INFINITE MONEY!!
Brandon Lee that’s what caused the 2008 financial crisis
The IQ level of these guys is too damn high
thank you this is the most comprehensive lesson in learning that I understand nothing about economics
Well this was briefly explained and it's honestly as simple as it gets. At least theoritical that is.
Basically longs for upwards movement, shorts for downwards movement. And with the market almost always going up it takes a damn long time to start seeing huge digits whereas shorts could do it in half the time or even less. Only thing is long time investing almost ensures wealth, short is gambling all or nothing.
The youtube algorithm brings us together once again. After GME has started to short squeeze, this video popped up in my recommended feed lol
I think Melvin at Citron forgot to watch this video before shorting GME.
They have an algorithm to decide what company's to short and they were just mindlessly following that module. Bad idea especially if you have a podcast/newsletter that tells rando's exactly what you are currently shorting.
Great information as always, I never quite understood the process of going short until now. If I may make a request for a future video that I struggle to find simplistic information on, the methodologies of calculating the value of a company and hence its stock price. In order to work out what would be an ideal price to look for when attempting the paradoxically impossible task of buying low.
John 15:10
Conan O'Brien's son knows how to give an explanation. Thanks, man 👍
This is very useful today. You forgot the part where wall street investors lose all their money but get bailed out by the government.
Who’s here after $GME?
Lol, that’s exactly why I’m here. Then I started to scroll through the comments looking for anybody else 😂
BB 🌈🐻
Its amazing what 2 million degenerate autists are capable of
Great movie! I read the book first, and then saw the movie. The book is like 10xs better because it’s more explanatory.
“You can lose an infinite amount of money”
UNLESS you are well-connected, THEN you can get purchases of the stock frozen, forcing the stock price down and scaring those who bought into selling at lower and lower value.
hi, im new to this, can you explain that ?
@@katz7476 unless you live under a rock your just trollin right now lol
@@katz7476 its what happened with gme
@@regidus not everyone knows about stocks, before you knew what was going on u we’re just like that guy.
@@nickalvarez2962 yeah your right. I just meant this has been all over the news thats all
thank you for making long and short very clear. although i do not invest in stocks AND SHARES i am interested in learning more about such complicated investment tools and strategies.
I FINALLY understand it. Thank you for a clear, unrushed explanation.
I have never understood how this became a thing. It feels like there should have been someone way back when who told people to f off when someone said they wanted to sell stock they don't own.
Like when people sell property they don't own? You know, like their houses?
When people sell products/services they don't own (which is most people, ie they haven't paid for them yet, but will pay later when then sell them).
This isn't anything but dropshopping a speculative price. As the other poster said when people sell their homes that aren't all the way paid off, they don't own it the back does.
Something interesting to note is that you can short financial assets without the associated costs using derivatives such as CFDs. This also comes at a large amount of risk however, as CFDs utilise large amounts of leverage. The 'stop loss' feature comes with gap risk. There are also Put Options in which you can only lose the premium you pay initially.
CFD is illegal in usa
Cfd are considered gambling in the uk. I dont think its an intelligent position
Nice video, Rich!
Thank you for making this video! Im new to investing and I once thought that you can owe more money than you invested when the stock falls and that this is the only way to invest.
Watching this on 2021 because I wanted to learn shorting in crypto. Very informative and understandable video.
Thank you so much.
0:48 "meaning you could lose an infinite amount of money... theoretically"
r/wallstreetbets : A theory is invalid unless it is proven.
Science bitch!
btw I like the stock!
I'm baffled by the amount of stuff my economics degree never taught me🤦🏾♂️
Who else is here trying to figure out how the heck their teenage neighbors are making 💸💎💸 on Gamestop?
The real question is, how do they understand this stuff?
@@adnanshahriar4435 it's really simple once you study it
This video really helped me understand what shorting is.
Short, straight to the point, clear and precise. Very nice video.
Now the movie trading places makes so much more sense.
This has been one of the best explanations I heard. Still I don’t feel sorry for the losers. This the price of playing the game!
Internet: "How shorting works??"
Reddit: "It doesn't 😂"
#GameStonks
@RNIK Sorry to burst you bubble but a bunch of other hedgefunds are also helping the Redditors but even more people have started shorting it so both sides are going to get slaughtered. The daily cost of shorting it is up to %50 now and it's normally only 1%, that's how many people are still trying to short this stock.
@@parker469a Well, the redditors are actually the ones winning. Whether they make money or lose money it doesn't matter to them. It's not about making $, its about bankrupting and shutting down major hedge firms. By doing what they're doing, they've essentially transferred wealth from the Elites to everyday people by nearly 100 billion dollars. I don't like socialism and the transfer of wealth by government, but THIS?? Oh, I can get behind this. Matter a fact already have! GME all the way! never pulling it out! MAKE THEM SQUEEL!!!!!!!!!!!!!!!!!!!!
@@curtisjohnson2433 Most hedgefunds are mostly older people's 401k retirement funds and the only people who will win on this in the end is other hedgefunds. Well and anybody who bought in at 10 and dumps at 340 a share. I don't actually expect to convince you of that though so good luck.
@@parker469a Gotta suck to be a boomer xDD
@@curtisjohnson2433 GME lost 100 dollars a share today so let's see how long it stays even that high.
Thanks very informative ....how do we find out if a stock is shorted?? Is there a way to findout?
Finally, I've understood the long and short trading
Thank you 😊
Thanks. So the Gamestop Rally is basically the biggest shortsqueeze of all times?
Comment for the AMC algorithm 💎💎💎
This video makes me laugh so hard with Tesla short sellers
Dude that company is so volatile. It closed the day today almost surpassing it's highest value of all time.
I wish I would have bought at 300 USD, but I went into real estate instead for tax write offs and having someone pay for my retirement. Nonetheless, I hope Tesla keeps on doing its thing
Oh how the turn tables.
You must not do stocks much, you should see how bad it did all last week. Yeah "tesla" is what I'm talking about
@@TheNebraska402 Here's your chance lol.
@@epimaz just saw that their P/E ratio was 1169. Holy hell what a gamble
Great video. This is why I went with SPXU, leveraged inverse ETF. The market rallied unexpectedly before it crashed. But I was able to ride it out indefinitely even though I was down 30% at one point. Plus, the S&P 500 can only rise or fall a limited amount.
Exactly. He doesn't even mention that you can short the whole market or an index to mitigate volatility and risk.
Great video Richard I’m now 100% on short selling
So, if I short a stock of a company that ends up going out of business, I can make a maximum of 200%?
I didnt understand short selling and after this episode I finally subscribed!
Short=sell something you dont have, but have to buy back. Long = buy something you can sell when you want
For a new person just starting out in the world of crypto . This video really is done well keeping it simple and the explanation is easy to understand . Thank you very much !!!!!
Best explanation I've seen. Simple and to the point.
Great explanation. I love the detailed perspectives and the examples given. :)
My observations have been that short-sellers are always on the edge of things: any announcement/news might send them in a "panic" move. Often, in margin trading, the house is always the winner because it not only collects fees and interest payments, but it can also liquidate your position through collusion with other (bigger) investors at any time.
All in all, short selling is a strategy that works only for a certain amount of time, mostly to get money/liquidity quickly. Going long and diversifying do offer more sustainable ways to grow your capital.
I came here to learn what all this is about after the whole GameStop thing. Took me a few minutes to wrap my brain around this, but here is an analogy I came up with to understand it:
My roommate bought an apple for $10. I borrow the apple from him, promise to return it tomorrow, and sell the apple for $10. If the price of the apple tomorrow is $7, I'll spend $7 out of the $10 I received from selling the borrowed apple, and keep the $3 change. If the price of the apple tomorrow is $100, I'll have to spend an additional $90 out of my own pocket in order to buy the apple back for my roommate, who now owns an apple worth $100.
Started watching this at 5 am. paused and subscribed, i need to re-watch when i am 100 % awake
Great video. I've had a few people explain short selling to me and still couldn't understand it --- until now. Maybe it's the teacher. I'm certainly not going to blame myself!
This taught me a lot about short selling, especially about the fees and margin associated with the strategy. The forced position closure and pressure from the broker's side also seems risky too.
But the infinite potential loss feels kind of biased and gaslighting imo. Just a single stop loss and proper risk management would solve this. Explaining the severe hypothetical risks without mentioning that there are factual ways of resolving them...feels intentional on the content creators part.
But thanks anyway for explaining short selling. 🙏🙏🙏
Who else is here cause you’re tryna figure out what’s going on with this whole GameStop thing
THANK you. Your video really helped me understand what the Tesla short sellers were doing and how they're losing money 😂
Locane256 are you Tsla investor?
I own 6, here to stay for the ride to $7,000 per share.
Might stay even after that.
Good presentation Richard
Thank you!
The Plain Bagel No prob. Content is very informative so thank you as well.
I just finished The Big Short. It's got me more intrigued than ever on how our economy/society works. I remember when 2008 happened. But I was too young to understand it as I was just entering my adulthood. Nearly 14 years later after learning about everything else that's fucked up in the world, that movie was the Cherry on top. Like Vinnett said. ...
Excellent video. Better than what else I've seen so far.
Long story short: Hedgies have to buy my AMC shares at minimum of $1000 each. Thanks for whatever you did Friday afternoon! ;)
Did AMC squeeze?
This video got recommended after many short sell Tesla haha
I hope you’re ok
TSLA had margin calls today causing a surge in the stock price.
Best concise clear explanation on short sales!
perfect explanation- plain and simple - as a bagel