The Ultimate Short Selling Guide - Everything You Need to Know About Shorting

Here’s my question that’s not clear WHEN do the shorts have to “cover” where does it show that?

💎 Constellation Energy ⚡ Corporation (CEG) 💎

If naked shorts are illegal then why isn’t it illegal when Comex does it?)

If the stock went up to 40, wouldn't you lose the entire 40 grand? You "bought in" at 10k expecting to hopefully make the 5k in the drop but if the price stayed the same you'd still be out 10k. Best case would have been a loss in stock price and you made some money but it just seems like every dollar the stock rises from your short sell buy in, you are just out that entire amount. Or am i misunderstanding?

I love this channel!! I learn a lot with it. Thanksss

Came here after accidentally shorting and somehow made money on it.

Hey Ross, you sort of lost the point on this one mate. It seems like you are struggling to explain that you don't understand how option trading works. AKA "Borrowing".I am coming up to 8minutes and you have not made any headway into discussing short trading strategies. Let's have another crack at this one in the future?

Excellent explanation, thanks

All I can say...Thank you Ross.

How do they charge the non existing millions of dollars from you if things go south and you are lets say based somewhere abroad?

4 billion shares short on GME. Not millions. 😉

Thank you Ross. You do a great job explaining concepts.

Thank you Ross I watched your recap today and noticed you mention didn’t trade AVTE since it’s easy to borrow, which unfortunately I did take a long position and lost $100. I know I would be able to find your video about this topic. God bless you❤

WT sim trader here - accidentally shorted a bunch of times - had no clue what to do, so I would "buy" the negative position (i.e., -3000 shares I would buy 3000). And ironically, I made money on all but one of those mistakes. Wish I had seen this video weeks ago.

Better to buy puts than short the stock, since you then have a cap on your losses.

I appreciate your efforts! 🙏 I have a quick question: 🤷‍♂️ I have these words 🤨. (behave today finger ski upon boy assault summer exhaust beauty stereo over). I don't know what they are. What should I do with them? 🤷‍♀️

'Naked Shorting is illegal' - yeah, OK, that's why I see 1 example every day, and could find 20 a day if I were looking. This is really a critical concept, because then CTB stats don't matter, because the broker is just making up shares somehow. And if it's a penny stock, then they set some giant benchmark, lure everyone in, combine it with dilution and drive the stock incessantly down and it never goes up again.

Let's say you're forced to buy at a higher price, what's stopping you from selling those shares immediately back in order to "break even"?

It wouldn't really be breaking even, but in your 40k example, it would actually be the delta of the stock price from grant to sale and the fees you'd be losing only, no?

Ross. Thanks

Your explanation helped me to understand shorting a lot better. I always think there is a roaring kitty out there watching the option calls so I rather not short sell either lol. Maybe with better versed experience.

What about CFD's?

GREAT presentation Ross. Thanks

in the right market shorting is very lucrative but those mega squeezes can and will wipe away weeks of work quickly.

Thinkorswim shows ETB and TOS rep confirmed no fees associated with easy to borrow stocks, as Ross discussed. I saw F was overbought and went much higher than it's been in years. I'll get it on the short. Ross has helped so much

Best to buy a PUT option to short a stock.
Upside can be > 100%+
Downside is limited to what the option cost.

Hey ross Can i offer you affordable thumbnail design services

Ross, I just started trading seriously and ran into the PDT flag. Do you have/can you do a video on the stipulations surrounding it and potential avenues to avoid it?

What percentage would be a good return on a monthly basis for day traders?
Last month I made $62K starting my account value from $470K and ended the month at $532K in my 1st month starting as a full-time day trader.

all brokers market you out now a days when your equity ratio drops below a threshold. so you cant actually even lose 100% of your account like the past.

ross if you are able to get a hard to borrow small cap stock and are going to actively scalp it several times do they charge you the borrow fee every time you short it.if so wouldnt that defeat the purpose of scalping it

short selling should be banned

If you're looking for a solid x100, Vematum should be on your radar.

I see Vematum as a long-term hold. Great fundamentals!

The more I learn about Vematum, the more I believe in its vision.

Vematum is making moves quietly. Keep an eye on it!

Lol i thought the button was F3 as you said in your naked short selling video before

That's just scary and def not something I would attempt.

I was able to end in the week green with an 8% profit in account trying to make this a six figure account soon

I discovered short trading in the simulator and made thousands.... I wouldn't risk it with real money... not just yet anyway

another bad thing about shorting is when you lend short shares for a day trading it can be lets say a 50cents/100 shres, but the brokers charge you way much for overnight borrowing even $50/100 shares. As they know that a short seller is trapped and sometimes holding the shares overnight will incur double the loss due to the overnight borrowing fee. Many stock will move sideways and holding them isnt a good idea as you ll be charged for each night

`Who pays you when you make money with shorting? is it the broker?

If you have 10 shares and a broker borrows 5 and the price increases are you only getting money for 5 shares until they decide to cover?

If I short at $ 10 , can I buy and exit the position at the same time at $5? If stocks is going lower than $5 and I've bought it back at $5 I don't want to be holding the bag. How would that work?

Which broker is best to short sell with

How does broker know to borrow for you. Does he do it when you push sell?. Iam confused.

Wait a minute. Are you shorting Tesla right now? Are you ok? Lmao. Love your content btw!

What happens to a short position if a T12 halt happens and the company gets delistet at the end?

I love short scalping halts.

Hello Ross, what is the term 2 days to cover mean?

I don't think I will ever take part in short selling and quit frankly the gain to risk ratio seems a bit ridicules to me and I don't see why anyone would want to do it. Nope not for me. Ill stick to parabolic momentum scalping. lol I will say its good to understand short selling thou and the reason I say that is because I think if or when I could or can recognize shorts trying to get out of a position while a stock is going parabolic, it could help me to hold a position longer and make my trade more profitable, just sayen....lol