Discover the Shocking Truth About Short Selling

[@jdickson1411]

Hey man. I went from losing -181 a day to making 1500 steady a day looking at your videos! Thank you! your videos are teaching people!

[@ion669]

goddam mate I respect your mental brother keep it up!

[@Z.H.Trading]

PLEASE - watch the complete video before jumping into short selling using the discussion points at the beginning of the video. Great video as always! Thank you again for the dedication and teaching.

[@ExpressiveWoods]

Ross just played a Jedi mind trick on me. The ending of this video hit me. Thank you Ross for putting the truth in my mind. Short sale is not for me

[@evilspyke5760]

i will never short (i say that now) because the risk is never worth the reward. when the ground is the reward and the sky is the risk, thats not a good risk vs reward.

[@robvazquez2074]

Keep adding until goes bk 😅

[@TopgunB]

You caught me Ross. I was terrified of low float low priced shorting before. Now I am even more terrified. Glad you have not switched😊

[@ismaelamaro7728]

It sure is a cautionary tale .

[@JosteinRH]

Shorting is still a viable strategy, just not for the kind of stocks in focus here. Shorting a low priced stock that moves several hundred percent in minutes/hours is insane. Shorting big-caps like AAPL, TSLA, NVIDIA (on the recent drop, or even the S&P this week has been a good strategy, as these stocks will not quadruple inside one day. I agree 100% with Ross, and was pleased with his conclusion in this video!

[@denkmaldruebernach]

SUCH A GREAT VIDEO ❤ you’ve explained it once before that at some point you’ll run out of shares to borrow, which was really eye opening to me. I was just about to implement a short strategy. So glad that I’ve not done it because of YOU! GREAT video and I hope everyone watching really understands this. At some point at the beginning of the video I really thought you’d start promoting short selling😂😂😂

[@JulianCobo779]

Thank you for such a detailed explanation! Your video helped me understand the mechanics of short selling. And when you mentioned Tamap, I think it might be useful for additional market analysis. I will study it further!

[@LauraRodriguez-lj9zi]

Thank you very much Ross for all your dedication and careful teachings. Several times I have thought about making shorts but you have given me immense clarity as to why I should never do it. I wish you the best of luck now and always.

[@HedgeFundOfOne]

Forget shorting shares with all the risk and trouble locating shares. Buy puts instead.

[@kmnz5882]

Thank you for making this video, I actually saw these Chinese stocks and thought making money shorting them was easy, but I was paper trading and didn’t understand these nuances. The most important nuances that I did not know until I watched this video was that brokers will auto liquidate your short position, this will explain why shorts get squeezed so quickly. I always thought “ just hold your short position to the next day since it’s cheaper to pay for the cost of borrowing than it is to cover your shorts”. But holding your short position isn’t even an option if your broker will automatically make you buy your short position at the highest price. The only reason why I didn’t start shorting these stocks right away is because of the PDT rule. I’m glad I saw this video before I made enough money to get out of pdt rule and tried my hand at shorting. It makes me think that these types of stocks just shouldn’t even exist in the market because it’s just simply a 0 sum game of money taking. I hope that the viewers will also pay attention that the float tends to be smaller because insiders normally own most of the float.

[@mach3musicstudio112]

Thanks, Ross. My short career lasted as long as the part where you mentioned unlimited loss. I had an idea that the risk would be great but, I’m never touching that form of trading. If I lose money, I have no problem if it’s the money I staked. Thus, I’ll stay on the long side.

[@AutumnRainTurkel]

I was just doing trading homework last night, reading The Playbook and wondering about short selling based on what I was reading. This was timed perfect and explained clearly enough that I now know that that risk is not for me. Now I understand the play and can clearly see the risk. Thank you for a great episode!

[@eusoj50]

Ross, you did an awesome job explaining that stuff. Great job, man!

[@Ruben-ot8pm]

What a wonderful video and lesson. Great explanations. Excellent reminders about the risks of short selling. My favorite part was when you listened to the universe. And that margin call and auto-liquidation… man wouldn’t anyone want to be on the long side? I Appreciate all your hard work put into these free lessons. God bless you

[@LeTradelive]

Ross - I just wanted to let you know that this video came at a perfect moment for me when I was thinking about starting to short small caps, this grounded perspective is really helpful to realize the actual risk of that strategy. as always TY

[@jamesdonovan5738]

Watching this, I felt you were talking straight at me. I have been wondering about shorting and the few attempts have been mixed at best. Going over your rules of trading was very helpful, thank you.

[@hoa081258]

I notice that most of the time, the leading gappers in premarket and regular session from 9:30-10:30 will start to fade after 10:30, then this is the time to watch them and start shorting. Especially, in the afternoon, they start flushing down more often right into the close and continue into the next 1 or 2 days, even going back to level before they started the run-up. I often don't trade the run-up because they ran too fast parabolically I couldn't catch it in time, then it's too risky to get in. So, I just start shorting them when they fade.

[@JordanTheHobbiest]

thank you for this. ive decided to stay long. No point going short if the most successful traders are long especially with the risk involved with shorting stocks.

[@larissam7098]

So happy you posted this video. I've been ingesting your videos and training materials for about 3 weeks now and finally started using a simulator but was getting frustrated because the time of day I have available to trade wasn't presenting a lot of opportunities to practice. Well, at least not that my eye can spot yet. So I decided to try and short today, immediately lost $160, reverted back to your strategy, in at the 2nd pullback, boom. Green. It is a little discouraging though bc the stock I chose to trade long just crashed shortly after the second pullback. Its been tough trying to practice. But this was so helpful. And probably saved my ass in the future. Thank you for all you do!!!

[@genice7546]

Out of all the videos you have done, this is my favorite! We are of the same mindset when it comes to shorting. Thanks again for all the amazing content!

[@lynnhawks519]

Thanks for an amazing message. Had me wondering at the beginning…. So glad I listened to the end 😎 BEST strategy. SMALL wins works. Today I made 1000 in the first 10 Minutes…. Almost walked away but went back 😛 gave back profit and went RED 2k. So mad at myself. Another learning day. Again, thanks so much ROSS…. You are exceptional my friend.

[@smartydude25]

Hit the nail right on the head with “well if I would just short then I would make money instead of lose” I have been in a serious draw down and just can’t recover. Right now im like an addict that doesn’t make the acknowledgement of the problem. I need to start Trader Rehab

[@zovoky2484]

you need to paper trade dude, i hope you stopped using actual money because wow

[@wakeup9557]

Ross I really really needed to hear this! Thank you!

[@robulko1121]

... some videos have to be watched to the very end 🤣 Thanks Ross for some more greatness.

[@doxjohnson9657]

Ross, THANK YOU for the time you take out of your day to teach. You changed my life and I appreciate what you do. I am in a rare position where i started my account with more than 25k. Ive learned the right way to trade from you and EVERY time I deviate from your rules and discipline, I LOSE! Every single time. Again thank you and I will guide people to your videos

[@Milen983]

Most stocks we day trade don’t stay up for the end of the day. I think most get short sold because at the end of the day they slightly increase. Probably that is why they drop very low then slightly up. Only slow moving stocks that continue to move throughout the day keep their price up.

[@KpxUrz5745]

This is a very good channel. I've started watching several episodes. I have done tons of trading but rather little by way of shorting. However am soon to begin more shorting. Only --- I will approach it far differently than anything discussed here. I will be open to shorting normal healthy stocks --- but only when the very short time frame candlestick charts tell me that it's time to short, for extremely risk-controlled daytrades. In intraday trading, one has to see that for most stocks they spend nearly half the time dropping. I consider that this style of trading really sidesteps the landmines normally associated with going short.

[@GB-wi7tj]

Hi Ross, you are amazing for doing this class. I am long biased and never short. The irony is if we can identify the short patterns, that are being formed, we can avoid the bad entry.

[@GB-wi7tj]

… for long

[@jerrebrasfield4231]

I never understand how short selling brings you money. Thanks for the lesson.

[@Indextradinginfo]

Good points. Thank you very much!

[@ahmadmassoud7053]

Can you sell before buying a stock? Like you have to have a stock to sell and if you sell lower than your purchase price you lose So how can you sell at high price and buy in lower and make profit?

[@foto21]

I'd love to see a video about how and WHY short sellers will sit on a stock and not allow it to budge up at all, and how that happens, and why no opposing traders come in and try to create a squeeze and push the shorts out, even reps of a company unfairly driven down. There's seems to be such obvious collusion in certain situations. Like you said, short selling is risky, so what is the motive for sitting on a stock for a week or a month, when a profitable position can be blown up? Why wouldn't they just cover and move on? This particularly makes no sense to me.

[@fallsnroses]

Glad RH is not allowing to short. How they could? Shorting is bottomless RH is not a big enough to cover all the possible loss, not many brokerages are anyway. Great explanation as always Ross, thank you.

[@Timefades1]

I have been shorting ever since I joined cmeg. So much power but have to be disciplined

[@logan_black]

I saw the title and I had to double-check the date because it looked like an April's Fools joke. 🤣 But, as always, you wanted to share your perspective and experience with us and I'm really thankful for that. I tried to short a couple of times in my paper trading account and lost a lot in just one trade, I'm glad that's just paper. 😅 Great video! 🙂

[@lawrenceebo6261]

Thanks Ross, for keeping everything solid and real with no fluff. You have been one of my mentors and I appreciate your content and efforts. I have become a great trader and investor and your have been a significant part of that growth. Keep up the good work!

[@AKAJWalker]

I was considering taking this up as a second strategy.... Ross just baited me into watching an hour long video on why I shouldn't do it.

[@Catalystproductionz]

It’s good to know when you have a double edged knife. It can be amazing and profitable, or it can break your bank.

[@robertstevensob4087]

Thank you Ross you are so helpful i love the lean in strategy makes so much sense... brilliant and your so right about small green days and small red days ,,, if it wasn't for you i would be light years from where i am now as a trader your the best

[@robsonrogan4839]

Brilliant video ! Thanks Ross for your expertise and dedication to this profession.

[@renee_miller]

Ross im surprised that u don't trade large caps, they r more predictable and some of them move $10 or more in a day.

[@josephneamon2432]

Such a good video! Nicely explained and will never short a stock

[@zsomarriba]

Been trading for 2-3 weeks now. I'm doing ok with it but I can't help but feel like this is a really unpredictable time in the market. I see a lot of stocks at the beginning of a good trend and I buy the pullbacks but there are times where it will randomly plummet. Seems to risky to short sell as a beginner trader...

[@stevet1714]

Thanks Ross , I always get a lot out of your presentations, you do a great job,

[@marga23]

Thank you for sharing your journey’s up & downs. I am learning to trade but I Chicken out if I lose money, I need to keep studying chart

[@PetEr-bk9zf]

You are right, more traders are realizing that you cam make more money these days by shorting unfortunately.

[@Winterascent]

Yeah, good luck borrowing shares when a turd is up 300%. DJT is a rare gem that had a high borrow fee, shares available, and huge moved that allowed traders to short it on the down side.

[@cj6585]

All it takes is one

[@robvazquez2074]

Thanks for the video Ross. This confirm that I’m a Short Selling person 😊

[@onelovemon1784]

I'm also long bullish bias like Ross. More our personalities. But I agree 💯 on I have to participate on this as it is so prevalent everyday hundreds of times. I agree sell on down trend, borrow only in ETB stock, then quickly buy back. Small gains little bit of participation. Did it on NU. Ross for President.

[@ericvanhorn7323]

Hey Ross, Can you recommend a trading simulator. I am new to trading and i would like to get some practice in with long and short trading with leverage before I invest. I love your videos. Lots of great learning. I would like to see myself taking a few of your courses once I can save up some money. Appreciate your knowledge and your passion to help others learn.

[@ablanchet82]

Been waiting for this thanks man

[@eduardomora9586]

I’m a total beginner. Started this month paper trading. My best trades have been shorts. I’ve been using RSI to validate my position when I see something approaching a resistance zone. I know it’s never 100% but am I just getting lucky or am I on the right track?

[@bobsam5982]

They are good until they are not. You will always blow chasing shorts. But go ahead and play

[@madmaves]

Trail your entry to the previous days low. Mark that and then drop into a lower time frame and see how it looks.

[@babalight]

Thanks for the great advice and sharing your insights Ross. If people listen you've saved them a lot of pain on that ONE trade that can crush you.

[@TennysonLaJeunesse]

I absolutely agree with his points in the video. It's a great lesson, a must-watch! What has been going on in 2024 has me almost yelling at my screens in the morning. The open market seems to defy all logic. I am convinced big trading houses are punishing retail markets due to the GS incident. You can't cause them to lose 6 billion and not pay some form of retribution. Maybe a little tinfoil hat, but something is going on.

[@albertocastillo6179]

There’s tools that help you anticipate the reversal one of those tools is the bollingerbands

[@DaytradeWarrior]

Ross prefers to rely on moving averages, volume, and simple, clean price action. He does not like to rely on Bollinger bands, stochastics, or Fibonacci levels because he does not find them meaningful for his style of momentum trading. However, these indicators work well in other trading styles, some of which are taught in Warrior Pro classes!

[@zay.25k]

Great Lesson Ross!

[@YaSoFine]

Awesome Video Ross ! You are such a wise mature trader. Like your perspective, reasoning !

[@Growtonics]

Thank you sir for explaining things like you do. I’m learning. Trying to turn this $500 into $1000+

[@ethanconner7771]

Lol, after 10 years Ross finally made a commitment. Ross was like enough is Enough.....

[@yamalet11]

Yay! Ross staring to short the market, I always wonder why you didn’t short,I’m glad you doing it now. God bless

[@superjeffstanton]

He's not

[@aaronkerlin]

Ross how are you getting around the pdt rules for small accounts

[@mattandsarahreeves8340]

He uses an offshore account for his small account.

[@ossentoo]

An amazing video. I have been flirting with the short side. I now agree after your clear reasoning, the risks of unlimited losses just aren't worth it for me. I now have a clear goal. Become a better trader on the long side.

[@danbuchner28]

I thought Ross said shorting was too risky, as the potential loss could be -- theoretically -- infinite!

[@PapaLoloJames]

Great video. Thanks for saving me from dong something crazy. Especially as a new trader. One question I had though is with EB stocks presumably mid-large cap do they have the same issues as being halted on the downside?

[@elementalAlma]

Do you have to then sell it after you buy back the short?

[@DaytradeWarrior]

No, when you buy you're essentially closing out your short position.

[@charliemcgrain]

FOMO...right? Great content. Most valuable teacher out there. Many thanks.

[@bibbidi_bobbidi_bacons]

👏🏼👏🏼👏🏼 nice work as always

[@bentleyphua7992]

Hey Ross, what do you mean when a stock is thickly traded? I've been hearing that term in your videos and cant seem to grasp the concept of it. I would love it if you'd make a video about it!

[@GoldenEagle7]

Ross,Thank you so much for explaining in details !! Really the short it's too risky I'd like the normal trading which more comfortable.

[@TheTradingCFO]

You are the man

[@arbtracker]

Saw CTNT's wild move today and immediately thought about this video. The crazy move down followed by the massive up move had to destroy some accounts that didn't heed the warnings of managing risk.

[@dustin6816]

Great video learned a lot thanks Ross

[@behzaddashtipour2810]

you nailed it Ross

[@supercruchynoodle]

Great video! ❤

[@DaytradeWarrior]

Thanks for your support!

[@user-fx9jj2xh1n]

Thank you for a fascinating video! You seem like a born teacher. I consider myself lucky to have found your channel. Cheers!

[@burlingtondigs]

Thank you for this video and for holding the line!

[@YaSoFine]

Ross: Question: is that then safer to short large stocks such as NVDA or TSLA or even ETFs such as TQQQ or SQQQ, because they don't flush up or flush down like the penny stocks do?

[@giG_apP_haCks_]

Shorting SQQQ is essentially like being long TQQQ. Shorting a short ETF is a long trade.

[@MrAloha999]

Brother Ross, I live in Hawaii..Any suggestions on what platform I can use to trade???

[@Vade1313]

Thanks for the video!

[@brandoncrawford1089]

Long story short its safer to never short, only one bad short trade can take u out.

[@Insidiou5_Gaming]

Now try the RV strat (or as I like to call it, Stock surfing 😂). Get into a trade whether long or short then when you think its going to turn around hit the reverse position and just ride the wave up and down. Can't really do it on low priced stocks. Nvidia, appl, AMD can work.

[@JR127]

what happens when you short and plan to buy back at 20%, it drops 10% but the market suddenly shoots back up 5% before pull back another 10%, do you make a loss or profit on the last 10% buy?

[@tunestar]

I loved this video, thanks Ross!

[@matthewalford4581]

Love the videos! Learned so much.

[@kwd-2023]

IMHO Shorting is a destructive and immoral function of the market, especially with the seeming unlimited availability of naked shorting. China stock HKD went from $12 to $2500 which would have flattened any short seller.

[@stevecristea3082]

Ross you didn’t talk about a stop loss. Most short sellers will have a stop loss setup at high of day to protect against a squeeze. Of course if the stock gaps up your stop may not get filled, I guess there is risk there too.

[@Megdan1111]

Do you need a margin account to short?

[@BretWickstrom]

Please no Ross. I don’t want the competition.

[@svanl1]

which broker do you use?

[@Winterascent]

Only a fool picks sides in the tide.

[@bradyrobertson23]

I'm sure you'll still get the fill on your 10 shares 🤣

[@DavidCruz_07]

Don’t worry newbies won’t know how to manage their loss and blow up their accounts in one trade, competition gone lol

[@boogiewoogieandbluespiano]

Wow Ross , i'm surprised to see you've decided to come over to the dark side 😁 but i'm very pleased as i'll get even more value from your video recaps now 🙂 Good luck with it 🙂 EDIT .... today i came back to finish watching this video , you fooled me Ross 😁😁😁

[@danieldengL4R]

Career Phase 2. That is awesome, Ross! Can you look at the BPTH chart, Ross, and include its commentary in your recap later. The chart has long top & bottom wicks & I have no idea what is causing that!

[@lynnhawks519]

I would love that too. Thanks

[@madmaves]

I found entries so simple with strat and nearly no drawdown.

[@sgtboz35]

I rode it down from 41 to 7. What fun!

[@thebullsandthebears]

Great video. This should be a Ted Talk

[@robpeters2296]

Why don't you try to buy just puts on mid and large caps the only loss is the premium, unless you let it expire in the money

[@dnadns8453]

Excellent content and style of telling. If my accoun has 10000 money and I am 1million in loss from a short trade, is my loss capped at 10000 or will they sue me unti they get it all or i am bancrupt?

[@HablemosdeMercados]

A short sale is always the riskiest option or path, the Market is biased and design for the long side😉

[@williamkoivu374]

Glad you made this video Ross. Also, glad we didn't lose you to the dark side 😂😂

[@LaLaB-cy8mn]

My heart sank when I thought Ross was going to the dark side

[@onlyoneperson5159]

I'm use to goin long onghe market My question is how do vsell what u don't own? Ur video makes it as if ur goin negative like ur selling what don't have or making a bet that it will go lower.. Is that an accurate perception of the idea of what shorting is...

[@DaytradeWarrior]

Yes as you would be borrowing the shares to short in most cases.. this is why short squeezes are so powerful as traders tend to get stuck in the short position and the broker has to liquidate those shares by covering / buying them back in

[@shawnmcdonald9352]

Thank you, Ross.

[@lighten_up]

Unfortunately, for the type of stocks you generally trade, your brokerage will likely not have shares to lend short, especially those Chinese stocks.