Trading 101: What is a "Short Squeeze"?

[@smash4139]

he explained like we’re kindergarten students that much easy to understand man love you

[@claytrader]

Glad it helped!

[@chivasdeguadalajara]

@@claytrader Great job buddy 👍subscribed

[@claytrader]

@@chivasdeguadalajara welcome aboard!

[@5qwert7]

nice! Explained in normal english. I understood 100% as compared to like 30% on other trading videos. liked and subscribed

[@claytrader]

@@5qwert7 thanks!

[@Dreadlock1227]

Who else is here tryna figure out what’s going on with this whole game stop thing

[@claytrader]

Many people lol

[@johnhartmann8592]

🤣🤣🤣 right here

[@claytrader]

@@johnhartmann8592 cheers

[@red149]

many many many lol

[@red149]

One important point : what happened to GameStop was special because "short interest as % of float" was very high. this is why the WSB ( who are retailers and don't have big capitals) were able to push the price higher. there were limited shares to buy so a small group of people could create the hype. when this percentage is at average levels ( e.g. 50% ) and specially on big companies, it needs much more capital to drive prices higher.

[@joespinosa1049]

I study finance at a top 40 university, and this is explained much better than anything I've heard in a classroom

[@claytrader]

Glad it helped Joe!

[@zarathamanna9964]

@@claytrader yes true,very well explained,

[@claytrader]

@@zarathamanna9964 cheers

[@ghettoghost2657]

Same

[@claytrader]

@@ghettoghost2657 Thanks!

[@mu9284]

I typed in the search bar in youtube " What is short squueze " and the page shows tons of video but i click on clay trader because he explains like explaining to a 5 year old and thats how its suppose to be explained. Thanks man...

[@claytrader]

Thanks for watching!

[@BLITZftw]

LMAO

[@kinyettabranner8419]

Yes love how he explains things

[@colemccoy231]

Came here to learn about why my GME calls are about to print, thanks bro. GME is 140% short float rn, about to be pumped

[@cargojoe]

what's your price target? I also heard about GME mooning and I'm curious

[@claytrader]

Cheers

[@colemccoy231]

@@cargojoe at least $30, but obvi I want more

[@yusufniamati278]

What exactly do you mean by 140% short float? I heard recently that there are more shares being shorted than actual stock in existence. Is that what you mean by the 140%?

[@invincibearofficial]

Me too! $17avg. GME hit $50-$60 historically during the last 2 console cycles, and now Cohen is gonna enforce max profits.

[@mclark202]

Thanks for explaining this the way you did. Helped me understand what happened with GME and AMC.

[@claytrader]

Thanks for watching!

[@hoodieyearround8641]

6 minutes into the video and my mind is blown, he cleared up so much that has been confusing me as a new investor that bought a ton of AMC. I now know what everyone means when they say we have to wait for the shorts to cover and such. Thanks man

[@claytrader]

Glad it was helpful!

[@healthychocolatenews]

Yeah. The best communicator I have heard explain shorting in less words than others. He is great!

[@claytrader]

Thanks!

[@ktmzombieryder4166]

I was a part of tsla history last month, my calls went from .15 to $40, what a wild ride.

[@claytrader]

wild indeed

[@dave-yj9mc]

WOW!! I hope you had bought the calls and not wrote them.... lol how did you do? be honest I want numbers.. :)

[@BurnedSpace]

hope u bought 5k worth if calls

[@DaddyFutbol]

Thank goodness this video exists to understand Gamestop, AMC, Nokia thing going on

[@claytrader]

Thanks for watching

[@Swaggaccino]

“If a company is not garbage..” Lmao GME

[@yaremadzu9566]

The whole GME thing just makes me smile lmfao

[@claytrader]

cheers

[@trentc6069]

I've never seen cramer scream so much 😂😂

[@claytrader]

@@trentc6069 lol

[@prickayeey8420]

Gme execs eating stake and lobsters all week long

[@brianrachmat3492]

I finally understand "short squeeze" Thank you.

[@claytrader]

Great!

[@tinly1]

I was watching to learn what a short squeeze is, and I ended up learning that “short squeeze people buy, u buy, I buy, every body buys...” and the price just keep going up until this video ends, It still go up

[@claytrader]

Yup. That's what it is...

[@stevejones2782]

🤣🤣🤣🤣🤣

[@antonionotbanderas9775]

He missed explaining how shorters start by buying. I thought shorters were borrowing the stock betting there's more sellers.

[@nailcarter1523]

Honestly I really do like how hard you work thank you for taking the time out to make these great videos!!!

[@claytrader]

Thanks for watching

[@dragosvoda1078]

no ideea what you said man. Thought I was having a seisure reading ur coment. BUT, i agree, losing Clays videos would seriously impact my hopes, dreams as well as mental and spiritual health at this point.

[@nailcarter1523]

Dragos Voda there fixed !!!!!

[@pabloaguila6344]

Easy to understand. You have charisma, a sense of humor, and clarity. Thanks.

[@claytrader]

I appreciate that!

[@ajbrown3608]

Thank you for explaining. I'm kind of dumb. Had to go watch your "What is a short" video and then come back to this one. Good info for a dummy like me.

[@claytrader]

Glad it helped!

[@timothymark8254]

Hi Clay. Did a search on Short Squeeze after seeing it mentioned on an episode of Billions and knew that your video would've explained it best. Thanks heaps for explaining it in simple English. We really appreciate the fact that you take time to break it down to the very basic understanding, enabling newbies to get a clearer picture of what's going on. Hope you and family are keeping well during this period. Regards from Malaysia.

[@claytrader]

Good show!!!

[@finalframeproductions1143]

Bro I never comment on KZbin videos . Literally the light bulb went off in my head . Great job dude

[@claytrader]

Awesome! Thank you!

[@e.davidjohnson4805]

Love your basic and simple explanation in trading. Keep them coming, thanks.

[@claytrader]

Thanks, will do!

[@ProblemForSolution]

After watching a few videos about short squeeze and not understanding a thing I watched your video and instantly understood, good job.

[@claytrader]

Glad it helped!

[@TheBlablawww]

Great explanation for a person like me who's new to the stock trading.

[@claytrader]

Glad it helped!

[@sharikacrenshaw4236]

Thanks for the perfect breakdown🥰

[@claytrader]

Glad it was helpful!

[@chocolateyartstudio385]

Hey Clay! I am a beginner trader and because I am a visual learner, I love your teaching style over everyone else's because you draw out what you're teaching, which helps me tremendously so thank you! Keep them coming! ❤

[@claytrader]

Thanks for the feedback and thanks for watching.

[@RobbSkates]

Great video and great stick drawings 😉

[@claytrader]

Thanks 😆

[@jonboybilly]

Anyone came to learn what a short squeeze was because of GME???

[@claytrader]

Been a monster!

[@AlejandroT1]

I was lucky to get a piece of the GME frenzy, wish we could go back one week so I could play it better :)

[@marie8872]

Yes because of GME, sold my shares 2 days before with a loss and still processing...helps to talk about it ;)

[@claytrader]

@@marie8872 bummer!

[@claytrader]

@@AlejandroT1 good ol' hindsight

[@cgiron3867]

Thank you. A little more explanation on how shorts buy was needed. The idea of "borrowing a stock" and pay later at expected cheaper price.

[@claytrader]

Glad it was helpful!

[@dave-yj9mc]

Before I even watch this video, I gotta say... I LOVE the freaking chalkboard!!!!!

[@claytrader]

cheers!

[@boolshit2020]

Hehe hehe, the chaulk board is awesome!

[@claytrader]

@@boolshit2020 cheers!

[@MrThyten]

are shorts basically people who buy puts?

[@claytrader]

No

[@EthePrequel]

You had me at the stick figure ! Great explanation m. Thank you for creating this content to help developing investors

[@claytrader]

Glad you enjoyed it!

[@Shadow-rt9eq]

I didn't expect much but very good explanation

[@claytrader]

Thanks!

[@shawngressel5339]

New Subscriber, thank you for the work you are putting into these videos!

[@claytrader]

Thank you for watching, and welcome to the channel!

[@cle0ph]

I'm new to testing, tysm for this info. I subbed, can't wait to see the rest

[@claytrader]

Thanks for the sub!

[@shanmank]

This video needs to be updated where Robinhood blocks buyers to support the shorts

[@claytrader]

crazy stuff

[@Jessica99152]

This is the best explanation ..... you explain in a very easy way thank you clay

[@claytrader]

Happy to help!

[@karlbooklover]

came here because r/wallstreetbets

[@claytrader]

Cheers

[@JC-xc8rx]

Hold!

[@77stockmanager47]

Timber Pharmaceuticals bought at 0,78 👍

[@claytrader]

@@77stockmanager47 roger that

[@dots_1]

Thank you for simplifying this for a smooth brain that only knows to hodl.

[@claytrader]

Cheers

[@dreambigstudios8046]

Just Joined the Rocket Ship!!!!

[@claytrader]

Roger that

[@azhar145]

really nice description. Thank You.

[@claytrader]

Glad it was helpful!

[@iAmTQH]

Awesome explanation. Love the old school visual aid, on the blackboard and chalks. Thanks bruh!

[@claytrader]

:-) Cheers

[@gerryramosftw]

ive been trying to find a video on youtube that explains what a short squeeze is, and this is the first and only one that has done a good job explaining of it. i completely understand it now subscribed and looking forward to more info!

[@claytrader]

Thanks for the sub!

[@trustmebro8500]

I’m 30 years old I am a part of the GME and AMC short making some money just because I bought into the hype but it’s working out for me thank you this truly is an amazing thing

[@claytrader]

Congrats!

[@MissionMuscleUp]

Sound explanation, Clay. Thanks brotha.

[@claytrader]

Thanks for watching.

[@ljuan5000]

Well explained. I'm learning because I keep hearing about the naked shorts are gonna get squeezed in AMC and APE.

[@claytrader]

Thanks for watching!

[@Kel336]

I subbed and liked. New favorite channel. You’re so good

[@claytrader]

Welcome aboard!

[@xxxag1768]

Extremely helpful!!!

[@claytrader]

Glad it was helpful!

[@hollisr4552]

Great teacher, he makes its easy to understand.

[@claytrader]

Glad it helped!

[@stiigern]

So a short squeeze is just when short sellers sell with a loss?

[@claytrader]

No, they're essentially "forced to exit" (buy) the trade because their loses is getting so large.

[@perrybocson1952]

You are an incredible teacher my friend it's a talent I was only a couple minutes into the video and regretted putting out money for a course I just took, I took more value from your video

[@claytrader]

Glad I could help!

[@nicholassheppard9311]

Thanks brother, appreciate your time.

[@claytrader]

You're welcome!

[@jarrettw1981]

first time I have understood a short squeeze illustration. Thank you! subbed and liked :)

[@claytrader]

Glad it helped!

[@nancyta3948]

Easy understand, well done, helpful …Thanks

[@claytrader]

Glad it was helpful!

[@kishanthakkar1019]

Buy Buy makes, go bye bye shorts.. classic video to understand #ShortSqueez. Watched ur *What is short* video too... Great work...

[@claytrader]

Thanks for watching!

[@hapshabyahyisrael9810]

I am loving this. Very simple.

[@claytrader]

Thank you! 😊

[@amazingbuilders3458]

I like the shirt. 🤣I would love to be in a short squeeze while in a large long position. I really like the way you used different colors for regular buyers and shorts. Great idea!

[@claytrader]

Thanks for feedback.

[@Digitalgems9000]

jimmy and bob lmao. great explanation. one the best on short squeezes man, love it

[@claytrader]

Cheers

[@robertperez583]

Awesome video just subscribed 👍🏼

[@claytrader]

Thanks!

[@PS-dp8yg]

So this happened with GME when Melvin Capital was short selling and betting on the company to fail. Retail traders wanted to stick it to the hedge fund company until the buy button was disabled by Robinhood. If the buy button was disabled, why couldn't retail traders use a different platform to drive up the price, like Webull, EToro, etc.? Isn't buying a share from one place the same or transferable to another app? Was the buy button disabled on those platforms as well? Could you imagine if the buy button wasn't disabled, companies like Melvin Capital would have to exit their positions, forcing the price to go up even higher?

[@claytrader]

Hard to say now, but yeah, it was a dramatic period of time for sure.

[@raymac6262]

Great explanation Clay. Well done

[@claytrader]

Thanks 👍

[@stephlight123]

Wow thank you for this explanation. New subscriber!

[@claytrader]

Welcome!

[@cal7283]

Very good explanation buddy. Thank you.

[@claytrader]

Glad it helped

[@paulmark992]

Thank you for the explanation.

[@claytrader]

Glad it was helpful!

[@Flo-qr7zv]

Love it.. GME today.. Friend told me.. I just bought in.. made 150% on one day.. now wanna know why :D Thanks for filling this gap!

[@claytrader]

Nice work!

[@isaacsogunro5179]

Great explanation. Thanks!

[@claytrader]

Glad you enjoyed it!

[@simple-human-being]

Great video, to the point, appreciate it

[@claytrader]

Glad it was helpful!

[@moeodeh3741]

MAN THANK YOU SO MUCH YOU ARE ONE OF THE BEST ON KZbin THANK YOU AGAIN

[@claytrader]

You're welcome!

[@pokihoki8699]

even though I'm not good at English I can completely understand the point he is teaching, very useful video:) thanks

[@claytrader]

Glad it was helpful!

[@alant6480]

Clay, thanks for making it so clear!

[@claytrader]

Glad it was helpful!

[@erarandom1116]

I love it when I have a strong entry then watch short squeeze after short squeeze.

[@claytrader]

A good feeling for sure!

[@benzoh28]

🗣Protect this man at all costs !!!! 😤

[@claytrader]

Thanks! lol

[@kelmel1842]

Hi Clay can you explain about the high short interest rate? Is it annually?? Thank you

[@claytrader]

Thanks for idea.

[@destineon9438]

You are SO GOOD at explaining things, thanks for the great video

[@claytrader]

Glad it was helpful!

[@tonychicaia1804]

Hey Clay, I had to comment on your videos. I have been watching your videos for a few days and I am learning a lot about day trading. Thank you very much. Keep on going.

[@claytrader]

Awesome, thank you!

[@deepdcpandey]

Awesome Explanation 👍👍👍

[@claytrader]

Thanks a lot 😊

[@michaelmurray1968]

What a great video! Thanks

[@claytrader]

Glad it helped!

[@Internet_user777]

I watched the other video in your link and now I understand!! Tysm!!

[@claytrader]

Glad it helped!

[@geauxracerx]

The short squeeze requires coordinated removal of liquidity on the asset When someone shorts they buy with Borrowed money/stock/crypto and immediately sell. So they now hold the entire amount. If/when price falls to an acceptable target the shorter then buys and repays the borrowed capital. They get to keep the difference. ( that the boiled down version. There’s fees, but there’s also leverage. Leverage is like a multiplier. Allowing the trader to play with more capital than they hold in their hand. But shorting doesn’t equate to number go up. Just because there’s wanting buyers doesn’t equate to number go up. Number goes up when there’s wanting buyers and no one willing to sell that the current price. If there is an abundance of willing sellers number goes down. You’re kind of right but you’re missing layers to leverage markets

[@claytrader]

Thanks for the thoughts.

[@angelabolado8803]

Thank you Clay for explaining how holding and how these short squeezes can benefit regular people.

[@claytrader]

Thanks for watching!

[@claytrader]

@Jon Jukoba thanks for the thoughts

[@PAPATexas]

Good info!

[@claytrader]

Glad it was helpful!

[@abtahichowdhury1385]

THANKS, SIR. HELPED A LOT

[@claytrader]

Glad it helped

[@primeminister7885]

I understand now, thanks Clay 🤩🎯

[@claytrader]

Happy to help!

[@mehrdad1065]

thank you . it was helpful.

[@claytrader]

Glad it helped!

[@jamiebury1807]

Best explanation yet

[@claytrader]

Glad it helped

[@dilapnapunjabi703]

So the price went up for gme and amc because, there were people who shorted the money and price went up. Then, They got short and exit the position and bought more. Hence, shooting the price even higher.

[@claytrader]

Right

[@oscarozden8759]

Thank you very much, I love the simplicity of your explanation

[@claytrader]

Glad it helped!

[@charliedog856]

how does a short squeeze end? specifically in the GME situation whats the right time to sell?

[@claytrader]

it ends with a big crash

[@justintavella7043]

So greatly explained bud

[@claytrader]

Glad it helped

[@irreplacableable]

Please keep making videos like these Subbed

[@claytrader]

Welcome to the channel!

[@aleceiffel80]

Brilliant explanation. Subscribed!

[@claytrader]

Welcome aboard!

[@jerimodel]

Great stuff do you do any value investing?

[@claytrader]

Yes I do!

[@jerimodel]

@@claytrader Do you have any courses for beginner's I like the way you break things down

[@claytrader]

This is my education program: claytrader.com/takecontrol/trading-freedom-pathway-how-it-works/

[@zzohaib85]

Thanks Clay. Do you think the GME squeeze is done?

[@claytrader]

Yup!

[@MrJZ99]

Understand the consequence, but please provide more details about why and when short people have to buy back.

[@claytrader]

This should help: claytrader.com/videos/what-is-a-margin-call/

[@tobyreckards9029]

This was great think you . Finally some one I understand

[@tobyreckards9029]

Great time for a typo lol

[@claytrader]

Glad it helped!

[@tombartholomew75]

Who loses the money when you make money from short selling? In your other videos, I like your example to think of it as if I am borrowing $100 > purchasing something for $80 > then returning the $100 > then keeping the $80 difference. I get the concept, but if I don’t actually own any stock, then where does the $20 profit comes from? Who is losing the money and paying $20 out? I am trying to follow the money trail and can’t seem to see where the $20 comes from. Thanks for posting these videos.

[@claytrader]

It could be a variety of places/people that lose money.

[@timepiecetrading5684]

The smartest video you ever made

[@claytrader]

Cool.

[@AkuaB_RN]

Hi Clay, thank you for your clear explanation. I just had one question. A short squeeze is essentially worth more than a gamma squeeze? Just thinking about AMC. I would appreciate your response. Thank You.

[@claytrader]

I'm not sure what you mean by "worth more".

[@hamzains]

Very well explained.

[@claytrader]

Glad it was helpful!

[@johnandino3170]

thank you for teach me this method you are #1

[@claytrader]

Thanks!

[@sami6593]

thanks clay that was an awesome example

[@claytrader]

Glad you liked it

[@Vae07]

What you mean to exit your shorts you need to buy? Why not just exit your trade or set a stop loss?

[@claytrader]

That's how you exit a short position, by buying.

[@billzhang9833]

So a short squeeze, it will eventually go down, right? This is because when the people think they made enough money, they will start to sell now because they want to lock in their profit. This causes the price to go down, and when other buyers see it going down they get scared and sell.

[@claytrader]

Correct. Nothing goes up forever.