151. How to Buy and Sell Short Stocks

[alexpho]

great video. one question please. It was mentioned that you need to " borrow " the shares on a short sell. If you have a cash account, doesn't it mean you have to own it first and then " sell it " through the " short " type during the transaction? So basically, you must own it first right?

[aknar123]

Really great video!

Thanks man!

[leobrforex]

U$ 50,000,00 x 30%= U$ 1.437.985,36 quem diz que não

vamos ter U$1 Milhão de dólares em 12 meses?

U$ 5000 x 20% = $373.687.690,97 Milhões de Dólares.

Esse é o valor ganho em 5 anos a 20% compostos ao mês!

[StockTradingMaster]

Good video

[websslinger]

@devanu1 Exactly. Even "experts" that trade professionally lose their asses all the time. They just have enough capital -and guts- to keep going (until they run out of one or the other).

[YourFatClownAss]

How much minimum capital does one need to start buying/selling stocks in order to make some sort of profit.

I'm a final year student so I don't have much cash at the mo and with all the fees it seems like I need at least £10K to just cover the those fees.

[Mr2011kiwi]

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[MomoHitsu]

How do you buy a stock from the company?

[UnladeHint]

You must get a broker I think - you then give them some money, and when you want to buy, you ring them up, and they buy your stock for you. To look at stock prices and graphs, you can use Yahoo finance

[cato804]

quick question, how do you borrow the shares first. i have a margin account and I do regular trading but I want to learn short selling. Your video didnt explain how to borrow shares

[InformedTrades]

It basically happens automatically as long as they are available. Contact your broker for information on what stocks are available to short with them.

[garlandgay]

Im still confused. So when i begin the short selling process, I first place an order to SELL stock that I do not own? Then, when im ready to cash in on gains or take a loss, I place an order to SELL SHORT?

Basically im confused on which option sto click on the drop down menus on my trading platform. I use scottrade and there are four options: BUY, SELL, SELL SHORT, and BUY TO COVER.

I understand the concept but I do not know how to execute the trade. Please Help!

[Xakanis]

If the company goes bankrupt, stock prices are now worth 0. And I'd imagine you would just pocket the 30 dollars/stock.

[InformedTrades]

Hey there,

 I believe that is correct--if you were to short at $30.00 and the company goes bankrupt and the stock is declared by that court to be worth $0.00 then you basically sold that stock and never need to "cover" or buy it back.

-Brendan

[TheLiptonGroup]

Your videos are better than a $600 stock market course, I took in college.

- Thanks for posting all your educational videos

I've got a real question here... I've been unable to find an answer on Google

Can I buy a stock short and then sell it the same day ? or the next day ? ?

Let's say I see a stock JUMP 20% in early morning trading, but I feel it will drop down to 12% to 15% gain, by the end of the day.

Can I earn a 5 - 8 percent profit in 1 day (if I guess correctly) ???

[Guiatuss]

What benefit, other than money, would selling short be to the company I buy stocks short?

[tim9798]

Prevents the stock from becoming too inflated, keeps the share prices down to reasonable levels.

[Guiatuss]

Thanks much for vids; stumbled on them today! Does one declare "short" when stocks bought or are they normal purchase?

[Chedat03]

Yeah I wnat to learn the same thing

[laghlaghoo]

Hi David:

Thanks for your useful and interesting lessons. I was wondering how much time do you have to return the stocks you borrow when you short sell? In your example, if the share price goes up to $30, can I wait 1 year, so it will eventually drop and buy the stocks at a lower price?

Thanks again.

[InformedTrades]

Hi laghlaghoo, Yes you can hold the stock short for as long as you would like. Best Regards, Dave

[BaerMichaelE]

When you buy to cover do you then own those shares and are added to your account or do they go back to the broker?

[iriston22]

your videos are all so usefull

thank you very much

please do not stop

you should write a book man there is allot of potential clients. good luck

[InformedTrades]

Thanks for the comment I am glad you like the videos. Once I have the full course done on video I will probably put it into a book as well so thank you for the suggestion. Best Regards, Dave