Transcript:

we're goodLet's talk about why you should love,love short selling stocks.Maybe not in the senseof you go and sell short a stock yourself,but in general you should absolutely love the concept.In fact, even if you never do short sell,you should still love short-selling.Really quick. What are you talking about?I'm a beginner.I'm just getting started in the markets.No problem at all.All short selling means is you make money whenprices go down.So you want to see a priceof a stock of whatever asset you're trading,Bitcoin, futures, Forex, anything.You just want to see that value, that price go down.And if it goes down, you're making money.Now, if it goes up, you're actually losing money.So that's, that's a flip.It's just, it's just totally reversed aroundbut that's the context.Short selling, you make money when prices go upor excuse me, short selling you make moneywhen prices go down, see, I can't even remember it.Short selling you make money when prices go down,and if the price goes up, you actually lose money.But why should you actually love it,as somebody that maybe may never even go short-selling?Well, here's the thing.And this is where I,and the source of this video is coming from,a lot of people think short sellers arelike evil or short selling is bad, or it's like unethical.And it's real, it's not at all because I meana market needs to have two sidesbut like I said, what short-selling actually does,it's kind of a sick and evil trap for the longs.It's a sick and evil way that people that wantto buy stocks, that want to invest, that believein the companies, it's a sickand evil trap that they are setting to the shorts.And what do I mean by that?Well, just to walk you through the dynamics.So if this is, you know, a shortwe need somebody that wants to goand short a stock, when they do thatin order to short, you sell first.Now this is where all the, you know,kind of the bad press, I'll call it.Well, yeah, the short selling, they're sellingyou know, they want the price to go down.They're selling people's stockand that's all true, but it's a half truth.So this right here represents how they enter, right?So yes, in order to enter a short-sighted tradeyou need to sell.But like I said, what gets lost in the shuffle is thatand not to insult your intelligence, but you knowa trade has two parts, right?You have the entry and then you have what?You have the, the exit, right?You need to actually get out of the trade in order toto make your money or, you know, take the loss.But, and a trade is not completeuntil you enter and then exit.So over here, we now have the exit.And here's the cool part.Here's why you should love short-selling,especially if you're just somebodythat buys a stock, believes in the company,and you think now this company is great.They're going to do well.They're gonna keep on growing.In order to exit, a short has to buy.They, and again,to get out of the trade they have to buy.So what does that tell us about this situation over here?This has created what?As far as the stock is concerned, guaranteed buyers.So let me ask you a question.If you know, you were in a stock,and of course you want to see the price go up,prices go up because of buying, right?Not to insult your intelligence again,but buying is what causes things to go up.The more people that buy the higher price goes,just basic, basic stuff there.So knowing that, don't you think it is a good thing,wouldn't it be a good thing,if you had a bunch of guaranteed buyersin your stock where you knewthat there are people out there that have to buy.Now when they buy that, that'll be a little differentbut they have to buy.There are guaranteed buyers in the stock that you're in.That is a great thing.And that's what I mean about the evil trap, right?Because if the company you'rein and let's just use the one, that's,at least at this point of the recording of this videoone of the most famous ones of, you know, a good quality,I guess it's still maybe debatable,on if this is a good quality company,but they're doing very well as stock price, right?Is T S L A, Tesla, right?Think about it.The past several years, you had a bunch of shorts coming in.They were sellingand their whole premise was Elon is gonna fail.Tesla's going to fail as a company.And because it's gonna fail, prices will go down.And that was their premise. They thought it would fail.So they would sell and sell and sell and sell.But the more they sell, the more, what happened?The more guaranteed buyers cameinto the equation because, well, in orderfor the short to end the trade, they have to buy.So the, you know, like I said, over the years,oh Tesla this, Tesla that, Tesla bearish,you know, sell, sell, sell, more and more guaranteed buyers.And then more recently, you know,what is known as a short squeeze happen,meaning they were wrong, and Tesla kept on chugging.Elon kept on making production numbers.And like I said, you can still maybe debate it.But as far as the stock price was concerned,the stock price absolutely exploded upwards.And one of the huge contributing factorsto the stock price exploding upwards,which again is what you want.If you're buying it to invest, was 'cause you had allthese guaranteed buyers that had to selland they were watching the price go up and watchingthe price go up and watching their lossesget bigger and bigger.Because again, when prices go up as a shortyou're losing money, and eventually just saidI gotta get out or I'm gonna lose my entire account.I need to get out.So they have to buy.Well then what does buying cost?Well, buying causes the price to go up even further.Then you had other shorts saying, I can't take it anymore.I got to get out of this trade.So how do they get out of the trade?Well they have to buy.So now you have a bunchof people buying to get out of the trade which what?Causes the price to go up even further,then you have more shorts, more guaranteed buyersthat say I got to get out.So do you see how this is a very explosive situation?Assuming the company has its act together.Now, if you decide to invest in a, some companythat you think is great and they turn outto be a clown show, well, welcome to the markets.You're not gonna always invest in the right companies,but that doesn't mean that shorting is actually evil,it just means that, hey, maybe the shorts were right.That was a bad company.But if the shorts are wrong, they are absolutelygonna help the price go up even furtherand further and further because they are guaranteed buyer.Now, of course there's an exception out there.Well, if shorts are out thereand then they start making lies about the companyand they're trying to do all this sort of maliciousstuff to send the company and the price down,I agree that that's sketchy, but let's also be real.Longs do that all the time, right?Have you ever been on a message board to the moon?What is to the moon?To the moon is just trying to get the price,trying to get as many people as excited as possibleso they buy, so they cause the price go up.So there could be plenty,and I mean, has anybody ever heard of Enron?Enron, you know, they did it, wasn't the, you know,the shorts actually exposed Enron,but they were out there saying this and sayingthat so they could try to get their pricesup higher and higher and higher.So again, and that's bad, right?A company should not liein order to get their price up higher.And people should not be lyingin order to get a price down lowerso that they can make money from the short side.So that hopefully we can all agree onbut you can't sit here and pretend,well shorts are evil because they lieand 'cause prices to go down.That's true.But longs also lie to cause prices to go up at times,which both cases are wrong.But as far as why you should love short selling,you shouldn't necessarily love short selling,but what you should love as somebody assumingthat the company is great is guaranteed buyers.And where do the guaranteed buyers come from?Well, by shorting the stock itself.So hoping this helped, hoping this can open your eyesto see that, okay, yeah.Maybe short-selling gets kind of a bad rapbecause at the coreif something is producing guaranteed buyers in a stockin a company that I believe to be of A+ quality,well then hey, those shorts are going to get trappedand they're eventually gonna have to buyand just cause you know, those short squeezes to happen,as they're referred to in the market.So hoping this helped, like I said, if you enjoyed the videohit that like button leave any comments down below,especially if there's ideasabout maybe future videos that need clarificationon or whatever.And, you know, just let me know your thoughts in shorts.Have you seen peopleout there that are all upset at the shorts, you know,see anything, got any good stories about that?I'd love to hear them down in the comment section.And then also if you enjoy this video,I'm confident you'll enjoy a lotof the other videos on the channel.So check it outand hope you decide to hit that subscribe buttonas I'd love to have you as a subscriber to the channel.First off, thanks so much for watching the entire video.Real quick, before you go,I want to invite you to a live webinar,web class, training workshop, online event,whatever you want to call itbut it will be me live revealing to you.What I discovered that has allowed me to transform myselffrom being an employee, to being my own boss,including how I had only one losing day outof 73 days in total.I'm going to cover three keys that havehelped me unlock profitable consistency within the markets.The first key is super weird,but in a productive type of way,the second key is super awesomebecause it quite literally is wired into our DNA as humans,making it very easy to use, but in a cruel waythis becomes a pitfall for many traders.I'll explain it all though,including how to avoid the pitfall that it creates for some.And yeah, the third keywhen you hear it sounds way to get way too good to be true,but it's not, and I'll show you how it all works.Then at the end, I open it up for a questionand answer session that is again, totally live.Even if you can't make the live sessionplease still sign up as it will be recordedand you can go backand watch the replay that I will send you.Click the imageon the screen or click the link down in the description box,so you can get the date and time and claim your spotwhich I should note is limited dueto the fact that this truly is a live event.If you have any questions, let me know.If not, I'll be seeing you soon.