Trading 101: What is "Shorting" / "Going Short"?

[@abderrahimba7390]

who came here after the gamestop short squeeze ? Mr Clay thank you for your explanation

[@mickylord21]

The short squeeze ain't done my friend

[@NyCDeViL9010]

AMC 🚀🚀🚀🚀

[@claytrader]

Thanks for watching

[@rishahid]

Me :D

[@claytrader]

@@rishahid roger that

[@chammey8545]

Those hedge fund managers should've watch this tutorial before shorting GME.

[@benjamilreed4640]

Loool let’s go

[@arlwav]

oh yeah, to the M00N comrade

[@claytrader]

lol... exactly!

[@tracyholguin64]

To the 🌙

[@DocSF04]

PRTS is next. Except PRTS is not a BS company like GME. PRTS ACTUALLY has excellent growth and earnings kick butt quarter after quarter. and it’s 9 on the list of most shorter stocks. PRTS will take off next.

[@crispy7215]

Clay is one of those traders that will still respond to comments after he hits one million.

[@claytrader]

That's my goal!

[@thomasandrews1263]

out of all the videos ive watched on shorting this is by far the best...great explanation...thank you

[@claytrader]

Glad it was helpful!

[@swimmpter]

I watched "The Big Short" yesterday prior to watching this video. You cleared a lot of my questions up and you always do an amazing job describing situations and scenarios. Thank you so much and keep up the amazing work!

[@claytrader]

That's a great movie! Glad to hear the video could help.

[@bengmelea8646]

how about a babe in a bubble bath to help explain? kzbin.info/www/bejne/l5-2gXpmibWZbpY

[@SnoozeCastWithMason]

Matt Follick kzbin.info/www/bejne/aaS7kGmJf6xogJY

[@enlaotrapuntadelmund]

Great movie, watched a couple of days ago. It was a clear explanation

[@wcc4269]

@@enlaotrapuntadelmund The problem is the big short wasnt actually a short lol

[@PerformanceTheaters]

Thanks for this video. I seriously thought short was holding for a few days. Blew my mind. And here I am investing and didn’t know this.

[@claytrader]

haha, welcome to the club! I can understand why you'd think that.

[@arayarutherford8779]

This is by far the best explanation of Shorting, thank you for helping me with my Corporate Finance exam!

[@claytrader]

You're welcome Araya!

[@e-sotopservices1898]

Yesss this guy is a genius lol

[@mumin1978]

This took me weeks to understand until I saw this video. Thank you!

[@claytrader]

Glad it could help!

[@laugatoloai9855]

For beginners, your style of teaching is perfect, almost a niche from all the others I've seen attempt to teach so called "Trading 101" videos. Most channels attempting to teach for beginners need a better understanding of the word beginner lol. The way you break down the what, why and how of trading as simply as you do has made the learning curve less steep and frustrating but more importantly, enjoyable. Appreciate your work, keep doing what you do because I know there are many out there like me who would less likely give up on learning if they watch your content.

[@claytrader]

Happy to be able to help! Thanks for the feedback.

[@ousfraton435]

these vids are acc so helpful. decided to start trading today and spent hours watching people explain things as if i’m an expert already despite having beginner in the title. found this channel and suddenly everything makes sense and the vids are so much more concise

[@claytrader]

Glad you like them! I'd encourage you to sign up for my (free) class I offer here claytrader.com/1-hour-trader-transformation/

[@ousfraton435]

@@claytrader just signed up now, cheers

[@claytrader]

@@ousfraton435 see ya soon!

[@mohammeddadi2330]

This was the most digestible video on shorting on the internet. Mind if I share this?

[@claytrader]

Please do!

[@computerwild1]

Clay, Thank you for this. I watched 2 videos from other creators. The concept clicked only after watching yours. Perfection brother.

[@claytrader]

Glad it helped!

[@lawart5603]

Wow, finally someone that has explained it in a way my average Joe dumbass brain can understand. Thank you for making it so clear.

[@claytrader]

Cheers

[@dwafieuafoa7272]

exactly bruh everyone just acts like we know stuff like fr you took the words out of my mouth

[@claytrader]

@@dwafieuafoa7272 glad it could help!

[@SnoozeCastWithMason]

LAWsketches kzbin.info/www/bejne/aaS7kGmJf6xogJY

[@none1705]

Best explanation I've seen explaining short selling stocks. I'm new to this weird idea, but since it's starting to click as pr this video. Let me offer a similar explanation to help others. When you want to short a stock: -you start off with 0 shares. -you sell 1 share (that you don't have), so now you went from owning 0 to -1 shares. -Selling anything means you collect money, correct? Lets say stock price is currently $15. Since you sold 1 share, you collected $15 from selling, but now you own -1 share. -Later stock drops to $10 pr share. You buy back your stock (-1share + 1 share = 0 shares) at a rate of $10 pr share. (Buying means spending money. You are left with $5 (aka, +$15 - $10 = +$5)

[@claytrader]

Here's another video too: claytrader.com/videos/how-do-you-make-money-shorting-a-stock-ill-try-to-explain/

[@Tennis-3582]

I confess that I'm dummy ,, my brother was explaining to me the shorting thing yesterday several times and for some reason I didn't get it!! But now after watching your vid everything is crystal clear! !

[@claytrader]

Great. Glad it could help.

[@melonsmind3331]

You’re not the only one who thought “going short” was holding the stock for a short amount of time lol. Thank you for this video!!

[@claytrader]

Glad it was helpful!

[@robertmenchaca4010]

Same here

[@randalrichey6408]

BRAVO! Light bulb moment right here. Thanks Clay

[@claytrader]

Great! I love light bulb moments!

[@tgay9594]

Hi, when shorting a stock and the stock goes up in price, but then eventually goes back down, will I have to buy back the stock when it is up in price or am I allowed to wait?

[@jazz19198]

t gay did you ever find out bc I’m wondering the same

[@SnoozeCastWithMason]

Jazz kzbin.info/www/bejne/aaS7kGmJf6xogJY

[@ThriveMindAndBody]

@@jazz19198 u wait till its low...girl

[@austinwalker5348]

This was one of the most informative, direct, and understandable videos I have been watching on investing. Thank you for the insight!

[@claytrader]

Glad it could help Austin!

[@meatsquader64]

This is the fifth video I’ve watched on shorting stocks, and you finally made it click for me. The real life explanation really helped me understand. You make great content!

[@claytrader]

Glad it was helpful!

[@collinherrmann7223]

dude... i had heard other explanations but this just made it CLICK. truly the best to explain ive watches hours worth and just learned more in 5 minutes. people over explain usually.

[@claytrader]

Glad to help!

[@JonathanR34]

Anyone else taking notes like they're in a classroom 😂

[@claytrader]

:-)

[@Player500-1]

All good students do!!! 😉

[@claytrader]

@@Player500-1 cheers!

[@martinrosas1182]

Yep.

[@claytrader]

@@martinrosas1182 good job!

[@davidk4682]

Clay, great video, great explanation. Keep up the great work. Some people are over thinking it in their comments below. Best advice, do your DD, research, read from many different sources to add onto what Clay has explained here if you still are not grasping it. Remember, it takes time and you will eventually get it. If not, trading may not be for you. Great video Clay.

[@claytrader]

Cheers and thanks David.

[@abrarkhorjiya8093]

Amazing, nice and easy way to explain finally, this is the 1st video I've understood it completely.thanks

[@claytrader]

Thanks for watching!

[@fredsalfa]

Im an experienced trader trying to explain shorting to a beginner. This is the easiest video Ive seen out of 10 so far to show to them.

[@claytrader]

Thanks!

[@fernandafernandesaugusto3851]

Wow! This video was totally mind-blowing! I was also in the group of people who thought that shorting meant holding the stock for a few minutes/hours hoping it would go high and then sell it. This was VERY simple and well explained. Thanks a bunch! 💰

[@claytrader]

Glad it was helpful!

[@Topher9203]

wow i love this video man. Do more of these! Very simple. Subscribed!

[@claytrader]

That's the plan :-)

[@TheMostEpicThing]

Hell yeah, this is the explanation I was looking for, thank you!

[@claytrader]

Glad it helped!

[@schweppesyt]

Thanks Clay! What is the benefit for Joe leaving ABC in the hands of Bill? There is a risk for Joe if Bill does not manage to return ABC back - what is Joe's "insurance"?

[@claytrader]

No risk for Joe. His broker has "back up" shares in inventory.

[@chrisjackson276]

Thank you. You were explaining so people could understand, not trying to show how smart you are. Your cadence and pace are easy to track.

[@claytrader]

Thanks for the feedback.

[@CDCNAM]

the way you explained it without all the big numbers or even more trading lingo that I dont understand made it so much easier to understand what it means to short in the market! thank you!!

[@claytrader]

Glad it helped!

[@chasedrayer3386]

I too thought it was trading for a short interval. Thanks for this! Subscribed.

[@claytrader]

Welcome to the channel Chase!

[@mungraloids]

Wow cheers and i did get really confussed and thought it was all about short and long timeframe haha. Your video made it all clear so fast thanks man

[@claytrader]

Glad it could help!

[@Edit12332]

This was great my man! Thank you so much for the good explanation, I got it instantly.

[@claytrader]

Thanks for watching

[@TheAkdzyn]

This video has aged really well. Subbed. Best explanation I've found on a concept that's been described in the most puzzling way one the news.

[@claytrader]

Glad it helped!

[@ErickMartinez-bn7qg]

I’m just staring to learn about the forex market and this was the best explanation about shorting out there

[@claytrader]

Glad it could help

[@JoeMama-be4zb]

Question: Do you have to pay interest once you sold it until you pay the stock you sold.

[@claytrader]

Nope.

[@claytrader]

@@mcultra57 he doesn't make any money.... you can hod onto the stock for as long as you want

[@claytrader]

@@mcultra57 he doesn't know... but he agrees to it when he signs up with the broker.

[@aufornvic]

@@mcultra57 I think this is where the short seller goes bust.

[@EdwardMWolfe]

@@aufornvic I'm guessing the broker would just borrow from another account or his own account so Joe could get his back. In theory, at some point, someone could actually get "shorted" so to speak, if there were none left to borrow to cover the one(s) that Joe unknowingly loaned out. Not sure what happens then, and it's beyond what Clay is trying to teach in this video.

[@tomc.8860]

Thank you for the explanation. The "behind the scenes" information was what I was looking to understand, and this answered that perfectly.

[@claytrader]

Glad it could help Tom.

[@Digitalgems9000]

yeah, so much stuff behind the scenes. i'm a programmer so i'm always curious wtf is going on at the lower level, and it seems like all the magic is done at the brokerage and nasdaq levels, which still continues to fascinate me and i want to learn more but oh my lol

[@Conorseanwilliams]

Great video. One question: What is “Joe” getting out of this arrangement?

[@claytrader]

Sometimes a small payment, sometimes nothing.

[@ADizz2000]

@@claytrader wouldnt this be unfair for joe? he bought a stock and then some one else sells what he bought. and he cant sell that stock when he wants to when price goes up huh

[@claytrader]

@@ADizz2000 he agreed to it when he signed up with the broker....

[@coincidence314]

@@claytrader was Joe aware of that agreement or was that in the fine print?

[@tdub25]

joe never even knew about it - abc was just “sitting in his brokerage acct, while joe hoped it was going up in value” - joe gets the exact same amount of abc shares back 1 or 2 days later; if the price went up his acct is worth more, if the price went down, his acct is worth less. joe knows no different.

[@cxptain3vil193]

I love how there is free education on yt and I am so happy I am taking advantage of this

[@claytrader]

Careful though, lots of bad info out there!

[@oneopinion5231]

The “fyi” part was so important for me as a beginner to understand shorting. No body ever described it with that little fyi before for me. Very helpful

[@claytrader]

Happy to help!

[@theaahil5386]

Very informative! One tutorial please on Options and how it's traded. Thank you in advance!

[@claytrader]

I have an entire training course on Options claytrader.com/courses/options-trading-simplified/

[@Peterdem44]

Hey clay do you have any videos that teach what too look for when buying a stock to see what company's I should be looking to buy

[@claytrader]

I do. I have an entire program. More details here - claytrader.com/courses/

[@Sasencio1284]

have you done a video on after hour trading.

[@claytrader]

I do not. Thanks for the suggestion though!

[@Sasencio1284]

+ClayTrader no problem, you give good info thanks

[@claytrader]

Thanks, glad you are finding it helpful.

[@mrpeterhacks]

you are a wizard, I tried to understand this concept from a layman's view but I couldn't, but now you just decode it for me my goodness, thank you!!!

[@claytrader]

Happy to help!

[@DinKnight]

I watched The Big Short and this time really wanted to understand the fundamentals of shorting. Went on youtube looking for answers and after a few videos, found this one which really made me understand. Thanks man!

[@claytrader]

Glad it could help!

[@TaylorKay619]

Omg this makes so much more sense. Thank you for this video!

[@claytrader]

Glad it was helpful!

[@tritosac]

I appreciate your video. Generally how long does a trader wait to buy back the stock? I have always been confused by the time limit a trader has and how that is determined.

[@claytrader]

It all depends on a trader's strategy. It could be 15 seconds, it could be 15 months. You don't "have" to buy the shares back.

[@Celadian67]

So wait, if person A "takes" person B's share and sells it. Then never buys it back. How can person B sell his share?

[@gerskenj5041]

@@Celadian67 He can sell it because the brokers will replace that share, with one of theirs

[@redmanrm1]

The broker can also sell the shares you are shorting at anytime?

[@fredillionnaireyea8321]

So if jo can have his shares replaced by the broker, does it mean that the broker is losing shares when billybob is shorting jo’s shares and making money by shorting it?

[@anujaakashtravel]

This is probably the best video on shorting - such a clear explanation! Thank you!\

[@claytrader]

Glad it could help.

[@r.a.monigold9789]

P.S. I used to think the same thing - day traders were short sellers. Thanks to you I know that even tall fellers can be short sellers. Very easy to understand. Thank you so much for sharing...

[@claytrader]

You're welcome. Glad it could help!

[@biancaturner1083]

THIS IS WHAT I’VE BEEN LOOKING FOR!!!! it took 10 videos but I found you :) thanks a bunch for the content. I hope you’re well. Gratitude from Georgia

[@claytrader]

Glad it was helpful!

[@TheArchitect718]

Wow, I'm learning so much, thanks...

[@claytrader]

Glad to hear that!

[@SnoozeCastWithMason]

JAVAN SAMMY kzbin.info/www/bejne/aaS7kGmJf6xogJY

[@ghostfan9577]

Clay: Nothing that really needs to be understood WSB r*tards: perfect

[@claytrader]

lol

[@yommyfood9602]

Stop using the r word bruv

[@tristanritchie4703]

Could Joe claim some interest on the shares (or other) he let you sell? For example if he lends you 500 shares of ABC, could he ask for 525 shares back, or perhaps a straight up 50$ cash interest? If not what does he get out of this apart from loosing money if prices go down?

[@claytrader]

"Joe" does not even know it is going on. If he "wants" his shares, the broker would give them some of their own personal inventory... and then when Joe goes out there to buy back, instead of the broker returning them to Joe, they would just put them back in their inventory. Good question.

[@tristanritchie4703]

Ah ok I get it now. Thanks very much! Love the trading 101 series btw. Keep em coming!!

[@claytrader]

Glad to hear your'e enjoying.

[@44jimcordell31]

Oh that's how it works. Thank you so much. When I first became a roofer they told me that some of the jobs would be 'scale'. I thought that meant I would have to climb a very tall ladder to get to the job.

[@claytrader]

Glad it helped

[@iffyn3893]

The best video on shorting on the internet. Finally understand it. Thank you so much for this explanation. Subscribed!

[@claytrader]

Welcome to the channel!

[@PhilaVeratatis31415]

Serious lightbulb moment for me, thanks man!

[@claytrader]

Good! I like when light bulbs go off!

[@PhilaVeratatis31415]

@@claytrader I'm glad I discovered your channel, you make it very easy to understand. I'm using Investopedia's simulator right now and am doing well (I think...I'm up $16k in 4 months...), but am nervous I don't have close to enough experience to play with real money. I work in the legal Cannabis industry and my income is challenged in a lot of traditional methods; Edward Jones kicked me out of their offices, but Fidelity has no problem taking my money. Are there better brokerages than others? Where should I go if I'm looking for full immersion in trading and investing...I'm a little more interested in trading as I'm single, no kids, 31 years old, no mortgage, and am getting ready to go back to Gonzaga to finish a Business Administration degree with a concentration in finance. Is that good enough? Thanks for the reply! I'll share your channel on my social media right now!

[@claytrader]

Dustin, as a new person to the markets, I'd encourage you to look into my private community. That'd be a great place to start. Nothing better than surrounding yourself with other traders who are treating trading as a business rather than a casino (which, unfortunately, many people are doing) - claytrader.com/innercircle/

[@EricSmyth4Christ]

Tell me if I get this right I borrow an oz of silver from Phillip when it's at $20 / oz I sell the oz of silver to David for $20. I now have $20 and a 1 oz silver debt. Silver goes down to $10 I buy an oz of silver from Zack for $10. I now have $10 and an oz of silver. I give the silver back to Phillip I made $10

[@claytrader]

Bingo.

[@ninemilliondollars]

Yes, that is correct and well stated supporting the concept that seems to be unsaid in short selling: you leverage the value of someone else's property (stock, silver, etc.) prior to returning that same property to them. ClayTrader explained the technical steps of how that happens (which you also echoed).

[@waynebarley2125]

How does Phillip make money here? Does he only make money if the price goes up? What is the point in Phillip even letting you borrow the silver..

[@ninemilliondollars]

@@waynebarley2125 Great question. If the property is a stock that Phillip is lending, then Phillip will be compensated by being paid a fee by the borrower. That's what he gets out of it. Note that it's a bit more complicated for stocks because brokers and dealers really transfer the stocks and handle movement of the monies, but essentially it's as I described. Here's a formal statement from Fidelity: "Margin Rate Definition. Margin Rate is the interest rate that a broker charges for buying securities on margin, i.e. for purchasing securities with borrowed money. Margin itself is the deposit needed in order to open a position with a broker, when the trader wants to use leverage." These rates vary from one broker to another. Fidelity charges rates between 5.5% and 9.825% with the lower rates for those having over $1 million in the margin account and the higher rates for those having less. It's a sliding scale.

[@Dan0rioN]

So you get charged an interest fee in shorting tho right? I feel alot has been left out here..

[@alvinjones593]

So, when shorting its SELL then BUY and going long is BUY then SELL, correct? I know, going long then selling closes the trade out but does selling then buying close you out, as well? Just seriously trying to understand.

[@claytrader]

Correct.

[@alvinjones593]

Thanks for the response. Love the way you trade. (emoji with stars in eyes). Do you have a tutorial on that? Or do you teach that?

[@claytrader]

You're welcome :-)

[@MisterFizz]

Nicely done, Clay. Most explanations I've heard in the past were less clear. It is all about placing a bet and hoping for an outcome. The $2K is your ante. It's placed on the "table" (your broker) where it is at risk. Depending on the outcome, you walk away from the table with a smile or a frown.

[@claytrader]

Cheers

[@Ukulele_Ad]

I watched videos on shorting with flashy animation and slick production but this was the first one that finally helped me understand. Good work sir, thanks.

[@claytrader]

Cheers Adam. I'm glad the non-flashiness could help explain better.

[@joshblannin1164]

So does BillyBob ever sell his own ABC stock?

[@claytrader]

His broker might, but he would never know about it. (assuming you mean "sell it" in regards to letting someone else use his shares to "go short")

[@joshblannin1164]

Okay that makes sense. Can you short any stock, even if you don't own any shares yourself?

[@claytrader]

Absolutely. You definitely do NOT need to own the stock in order to short it.

[@joshblannin1164]

Ah now I get it! Thanks! Love the videos by the way!

[@claytrader]

Glad to hear that. If you want to get real serious about trading, since you love this free stuff, be sure to consider the premium training courses I offer: claytrader.com/training/

[@guillaumelambert1894]

I struggle to see why Joe would let you short his stock.. what does he get outta this

[@claytrader]

Joe doesn't need to approve or anything, therefore, he doesn't even know. He can sell his share at any point (this is where the broker's actual inventory comes into play).

[@guillaumelambert1894]

I don't understand... it's like I'm sayin ok I'm gonna go sell Joe's house without his consent because I think that in a month it's gonna lose value.. and when it does I'm gonna rebuy it and give it back to Joe.. how is it that you are allow to sell someone else's "house" without him even knowing and what happens if you can't rebuy it ? I think you left some parts out here..

[@claytrader]

I left nothing out. If you buy a share, and the broker gives that one share to someone else to sell, and then all of a sudden you want to sell that share, the broker will give you one of theirs to sell. You are way overthinking this.

[@claytrader]

None of this matters in the real world of trading. It's just an FYI on how it works. If you are writing a paper on it for school, then sure, these details matter... but in the practical world of "actually doing", what I've described here happens all the time and happens in the blink of an eye due to the computers.

[@rohitkashyap1051]

so when I Short a share at 10 and buy it back at 12. I loose $2, who earns those $2. Does joe earn.

[@jerfedittmann2145]

Thank you, Clay. I am new to this and I am learning as I go. Now, I understand what Shorting is.. :-). I Subscribed !!

[@claytrader]

Glad it could help!

[@mikegee8980]

Thank you for simplifying this. I am some what new to stocks and this really helped. Only thing I would have added to this is all the fees involved with shorting. A lot a new investors don't know about the fees and extreme risk involved.

[@claytrader]

Glad it was helpful!

[@nicktekula4928]

This is hands down the best page for traders 100%

[@claytrader]

Thanks for the kind words.

[@bobbybands1928]

It’s 2021 and apparently you can just cut the broker out of the equation 😂

[@claytrader]

Nope. Still need a broker!

[@MrSuperkindguy1]

Hats off!

[@claytrader]

Thanks

[@SeventeenSphinx]

6:46 you said sharting 😊

[@claytrader]

Did I? lol

[@fredrtg]

Thank you for your in depth breakdown of what shorting is and means. It is very helpful as people go along trying to learn trading with all these internet sources.

[@claytrader]

Thank you for watching.

[@temmiepet4183]

Thx for the vid. I saw so many videos of people telling you how to short, but never explaining what goes on behind the scenes.

[@claytrader]

Glad it helped!

[@Pedronevarez99]

Today was my actual first trades on forex with real money and I mad 500

[@claytrader]

Congrats

[@rabinrai5203]

are u still making money now or losing?

[@armandoferreira1346]

​@mother nature he dead

[@alexishernan4289]

So going short is your making a bet that the stock prices are going down

[@claytrader]

Correct.

[@alexishernan4289]

ClayTrader does failing or bankruped companies count?

[@claytrader]

I'm not sure what you mean. If you believe a price will go down (the reason is irrelevant), then "shorting" is how you would make money on your belief.

[@alexishernan4289]

ClayTrader I mean for example if you short on a company that's facing bankruptcy,is it a good idea to short?

[@claytrader]

It might. Lots more factors go into it than that. If you'd like to learn more, I offer training courses claytrader.com/courses/

[@isupportthecurrentthing5225]

So basically, billy bob borrows the stock from jack and sells it for 10 dollars. The stock drops to 7 dollars so now when you give jack his stock back, you only give it back for 7 dollars which allows you to keep the 3 dollars. Well god damn. If I was jack i'd beat the shit out of billy bob for "jacking" my money. PFFFFTT HHAAHHAAHA

[@claytrader]

Good thing Jack and Billy-Bob never know of each other then.

[@kenoldtime8598]

Yeah i feel the same way😂😂😂

[@bawattsyl]

I now completely understand the concept, ...you explained it so well (at least for me) , however, I'm a little curious on the mandate of the use of a margin act. Forgive me as my investments have always been" long positions " ..so I'm a little naive when it comes to things like this. Im assuming this margin acct acts as insurance in a sense, ..so in case you short something that then goes really high, there's at least thst guaranteed money to cover?

[@claytrader]

You don't have to use a margin account if you don't want to.

[@DipankarGhosh007]

Easiest explanation on YT, saw a channel with 4.2 mil subs, understood little, u deserve more subs man

[@claytrader]

Please share the channel!

[@justjoshin4135]

Your one of the few in the world that can actaully explain something well

[@claytrader]

Thanks. Glad you enjoyed!

[@aronkahuti6529]

Thanks a lot for the insightful presentation. For far too long I had trying and dismally failed to grasp this concept. At long last I have gotten it. Again, thank you so much.

[@claytrader]

Glad it could help!

[@terryc1476]

watched a few videos relating to this topic, Clay Trader was the only one I understood perfectly in laymans terms for the new to trading, thanks !

[@claytrader]

Glad it could help!

[@alenjakupovic678]

So the benefit to the client whose original asset you sold is the potential that the price actually goes up, during which they make money without really doing anything? And otherwise if the price does go down, they don't really lose anything and you gain something? The market is an amazing thing. I've recently started investing and your videos are helping me out a ton, thank you.

[@claytrader]

Correct. Glad you're enjoying! I appreciate the feedback.

[@artieedwards]

Great explanation on shorting! By the way, that “FYI” info regarding the borrowing of securities from other investors was quite helpful in my overall understanding of the concept. Thank you!

[@claytrader]

Glad it helped!

[@pithyparty6145]

I don't understand the borrowing as opposed to buying piece of this. How does that work?

[@claytrader]

@@pithyparty6145 i'm not sure what you mean... that's what I explained in the video

[@jacobjanssen2959]

Watched 4 videos on shorting, was still confused on how it worked. You nailed it man, I completely understand now! Thank you! 🙏🏼 (smash the 👍🏼 button)

[@claytrader]

Glad it could help!

[@bunbunx1]

This video was done really well. As somebody who can’t keep focus well, the colors and everything broken down on the board visually was very helpful. Thank you!

[@claytrader]

Glad it could help!

[@fefemarks315]

Your videos are hands down the best. I finally understand what's happening now.

[@claytrader]

Thanks! Glad you enjoy!

[@DingDangg]

I love the way this guy explains the market, he’s truly the best!

[@claytrader]

Thanks for watching

[@jopper111]

You are the very BEST TEACHER for ME , Clear ,Easy Understanding ! THANKSSSSSS YOU !

[@claytrader]

Thanks for the kind words.

[@CJnTJ]

Best explanation I’ve seen. Thank you!

[@claytrader]

Glad it was helpful!

[@bss3869]

Commodity traders understand this concept big time. Good job in explaining this.

[@claytrader]

Cheers!

[@Spitfireseven]

Dear Clay, That was a great simple video. As simple as it was it was so essential and you did a great job of taking something that can seem kind of obscure and made it simple to understand. There is a lot to be said for this kind of skill. Thankyou for taking something that, I still am going to be coming to grips with to understand, "In the money" and "out of the money" concepts. The mathematics here is definitely ratio oriented and chartable. Charts like this never appear here on the internet. They seem to be an industry knowledge. Thankyou so much. For the great video.

[@claytrader]

Happy to help!

[@boysofneverland4945]

Thanks - your videos are BRILLIANT - easy to understand and they take away a lot of the confusion.

[@claytrader]

Glad to hear you enjoy them. Thanks for the feedback.

[@erikwright5281]

Thank you. Finally someone who is good at teaching this stuff

[@claytrader]

Happy to help!

[@mr.jameservinberry3722]

Clay, this is the best video I have found on shorting. I am adding this to my digital diary. Great job, sir.

[@claytrader]

Glad it was helpful!

[@Selantrow]

This is the best method of understanding going short.

[@claytrader]

Thanks

[@hoppps2740]

I had an epiphany watching this finally! Able to understand “shorting” and worked exactly what going long/short means to a FX pair. Just want to say thanks!

[@claytrader]

You're welcome. Glad the light bulb came on for ya!

[@khaledahmed2847]

Great explanation on shorting, I have been looking to explain it more clearly to others as well as understanding it better myself. I do have a few questions however: 1. Am I obligated to "buy back" the ABC stock over a certain period of time, can I hold out/on until the stocks price drops to my liking? 2. When I sell as my initial action on the stock, will I be selling at the trading price prior to its potential change or is it a hypothetical price which I assume it will trade at? 3. Does shorting or trading on a margin give me ownership on a stock, just as a traditional buy would? Lastly how are shorts determined, is it when the stock is being "bought back" (this may tie in with my first question)? Thanks in advance and I look forward to your future content!

[@claytrader]

This playlist should help claytrader.com/blogs/trading-101/

[@qwertyddr06]

They are basically fronting you the shares and you have to give them back. This explanation made it so easy to understand. Thanks! Is there a time limit on shorting? I can imagine this could be very risky dealing with longer lengths of time...

[@claytrader]

No time limit.

[@Laura-cg3ip]

THANK YOU!!!! You are the FIRST person to finally help me understand what this means!!!🙌🏻

[@claytrader]

Glad it helped!

[@bryancoiffman5330]

Finally someone who explains this in a way that's easy to understand. Thank you!!!

[@claytrader]

You're welcome. Glad it could help.

[@bma92296]

I've watched a few videos about short selling, yours have been the best!

[@claytrader]

Thanks for the feedback. Glad they could help!

[@AhmedEid-sk8zr]

Great job Clay. Amazing simple explanation. I still couldn’t get the concept of trading in a stock you don’t actually own, Since you are selling first

[@claytrader]

Glad it was helpful!

[@alimirza3442]

Also clay I've found that you are really good at showing people the basics abs explaining thoroughly. Thank you so much. I will continue to watch your his l vids.

[@claytrader]

Thanks Ali. Glad you're finding them helpful.