Added: 3 years ago
From: khanacademy
Views: 55,535
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  • wait buy low sell high and sell high buy low is the same lol i think he ment buy high and sell low

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  • Proceed w/ extreme caution when selling short. There are all sorts of perils. You can get burned because your gains are limited, but losses can run out of control if the stock keeps increasing. You can also get trapped in a short squeeze. Not for beginners. I learned the hard way.

  • @bailinnumberguy well you should have had a stop loss at 5%....

  • Thank you very much

  • Thanks! Subbed.

  • well explained...thanks man!

    

  • Ran accross your video - friend and subscribe for wealth building videos - day trader, day trading, day trade

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  • how come i borrowed a share then sold it in the market ?

  • @MRahmosa

    So that it can be bought back at a lower price and you keep the difference.

  • @TaIk2Kevin i got it thanks : )

  • thank u very much

  • Nope. Never in my life have I heard the term. Even though I know a stock broker.

    He doesn't like short sales. He thinks that, most of the time, it doesn't work.

    He was born in real poverty: he calls it 'a place of darkness,' and he doesn't like playing around w/ money the way he sees SOME people doing. It makes him angry.

    "I go, Broker, I want to short IBM." LOL

    He told ME he has 3 clients. I hope he's not lying.

  • thanks man

  • holy fuck this was confusing... lol

  • thanks so much man - excellent explanation. I covered my short of BoA stock right before 4Q09 and made an excellent profit. Went from trading $17 per share to $3.

  • nice - but.....could have been a 2 minute video. You confused the viewer with a ton of tangential topics. You could just sum those up at the end. Ended up being a little too convoluted.

  • so when i borrow someone's stock i have to write a cheque for their dividends....does that mean that the company (IBM) pays the dividend to me now since im holding the stock? otherwise im just making a loss of 5 bucks...?

  • so if you have shorted X shares of Y stock and Y, Inc. has a 25 cent per share dividend issued the next day, is it the responsibility of the person in the short position to cut a check for 25 cents a share for all shorted shares to the person from whom he borrowed the stock for shorting?

  • great videos, u r a very good teacher~=D thank you~

  • Man, thank you, great explanation, you should write the next " Complete Idiots Guide on short selling.

  • Excellent presentation & explanation. Many thanx!!!

  • love these videos

  • keep up the great work. love the visuals.

  • Finally it makes sense, thank you.

  • KISS -> keep it simple stupid

  • Got it.

    Thank you

  • You rock Sal

  • I'm embarrassed to say I never heard the term 'short selling' until now.

    I'm only a Paramedic which, simply put, means I can't afford to play the stock market.

    I used to live with a doctor who was all into the market. He watched Wall Street Week every Friday, read reports and owned stock in Procter and Gamble.

  • What is the difference between short selling and call/put options?

  • Obviously it's complicated but with a put you have the option, but not the obligation, to sell the stock at a specified price during a specified timeframe.

    Short selling, well 1st it requires a large amount of capital, second you have unlimited loss potential once you enter the trade but you can ride the stock all the way down and exit at your discretion.

    Difference risk, different reward potential also different motivation.

  • Short sellers get in and out could be an hour, a day, a week whatever. Predicitng bad earnings report I short a stock, report is released I ride the downturn until my predicted low then I exit.

    I would choose a put option if I predict price is primed to fall for whatever reason, I purchase the option, the price never falls, I never sell all I am out is the price of the option. Not nearly as much risk if I am wrong.

  • This could be explained in a much simpler way--KISS--Keep It Simple Stupid.

  • A time line would be good to show the sequence of all the transactions.

  • Also, how much is usually the interest you pay to borrow a share

  • The Broker have to provide the service for you to be able to short and long right?

    Thanks for the education. I always hear this term, but no idea how to do it in Australia

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