 Shut squeeze What's up money gives me the V here welcome to another video guys so in this one we are going to talk about Shut squeeze so I'm gonna explain what that is. We'll use some examples so that a little you guys that Don't quite understand what's happening with some of the stocks That we see moving in the market that are not following the fundamentals of the market We're gonna explain that in our show examples So that's what I want us to cover into this video But before we get started guys if you're new to the channel We took about hard to earn money how to save money how to invest and build wealth So that's something that interests you go ahead and hit that subscribe button and the notification bell So you don't miss out on you content So guys if you are being in the market recently Maybe if you knew to the market, you've probably heard about AMC. You probably about GameStop Coals here Blackberry no care In awesome other stocks and so the one things all this the one thing all these stocks have in common Is the fact that they have been short squeeze? So What does that mean when they say a stock is being short squeeze? What does that mean? So for starters Short squeezes simply means that there is kind of like an unusual situation in the market That triggers the price of the stock to move up Higher so in this case the unusual situation is that these stocks have a high level of Short interest in that particular stock So if you have a high degree of short sellers holding positions in a particular stock and then Most people or some traders would buy this stock for no other reason Just for the fact that it has a high Short interest so when they buy that and the stock starts to move up Then their short sellers try to cover the position in which case they buy the stock To get out of their position and the market react as if they are looking or they're buying the stock Actually to hold but in this case, they're just covering their position and that keeps pushing the price of the stock up and up And when that happens more people get excited they get the news about that particular stock So what do they do they jump in more people flock to that stock and then push the price up to? Crazy levels again. We've seen this happen with GameStop where GameStop was actually pushed to close about $500 which is crazy and then now we're seeing it with amc That as of a month ago was trading at about $9 and now sitting at $62 so again This is stocks that you get that I mentioned that have a really high short interest So now the website that I go to to get the short interest stocks is Call high short interest calm so when you go there it gives you a list of the top Short a high short interest stocks So in this case if the the short interest is less than 20% is not going to show up on this chart If it's over 20% or 20 and above is going to show up here So anything less than 20% is not going to show up here But you can come here to get you started So if we look at here so these stocks actually rang in terms of how high the short interest is and so in this case Workhorse has the highest short interest. So you see here about 42% That's why it's number one on this list And so that is the reason why you would see certain stocks again would move up like crazy So let's do a quick recap here again according to invest PDA if you want to understand what short Squeeze is a short squeeze is an unusual condition that triggers Rapidly rising prices in a stock or other tradeable securities So I sure as again in this case I break it down for a short squeeze to occur the security must have an unusual degree of Short seller holding position in the stock. So we've seen this with GameStop The short squeeze begins when the price jumps higher Unexpectedly the condition plays out as a significant measure of short sellers Coincidentally decides to cut losses and exit their position again. Let me break this down to you So when somebody short a stock Basically what it's saying is I want to sell the stock at say $10 and then buy a $2 That difference there of $8 would be your profit just like a number Buying and selling stocks you want to buy low and say hi you buy a $2 to sell at 8 when you short You're selling at at 10 to buy back at 2 And so when the stock has a high short interest you see some Investors or just or traders would just go to that stock and start buying it And so when they start buying the stock more and more the price of stocks are going up So for people that are short of the stock Let's say you showed a GameStop again at $10 and then next thing, you know The price goes to 10 from 10 to 15 to 20 to 30. You are $20 in Down already with that particular stock. So most of them now would buy the stock to cover their position So in the process of buying it to cover the position the price of the stock skyrocket And there are more people because like whoa, what's going on with GameStop? And then they want to come over there and come buy or AMC They come over there and buy and the more people flock in to buy and open positions The price of the stock keeps moving up and up and up and so that's how you have a potential Short squeeze so it requires a lot of short sellers to hide to hold positions in that stock and then It requires people to decide or traders to decide to stop buying to drive the price up so that people can make Even more so profit. So that's what I wanted to cover in this video. Hopefully this kind of helps you understand What no short squeeze is again, this is just basic Again, if you don't understand what short selling is that's something you want to read up because it's gonna help you understand what short squeeze is because it really hinges on the fact that short sellers are holding a tremendous amount of position and the stock on the short side and then Other traders are trying to buy to push it to the high side. So that's it for this video again Let me know in the comment section if this was helpful if you're new to the channel We took about how to earn money how to save money how to invest and build wealth So that's something that interests you go ahead and hit that subscribe button and the notification bell, too Don't miss out on your content. Also guys, if you're looking to get started with investing We will house their promotion right now where if you sign up and deposit a hundred dollars You get some free stocks links in the description below and as always guys do you do diligence? Don't be a greedy savage stay motivated You