I had a Quick Big short squeeze with Porche luv, it was accelerating . It was a Internet Kindness moment. Kiss. Sometimes you say things that dum you down .Your advertisements have already been in my mind sweets. You under estimate.
@@brodyalden Patrick's fine. He's interesting and a very smart man. Inability to understand what's coming in the future isn't a crime. Apple, Microsoft, Google and Amazon were all laughed at. Tesla will eventually be larger than any of them. Musk has an eye for areas primed for disruption and he's tireless. PayPal, SpaceX and Tesla are examples of what's to come. Tesla isn't a car company. It's a high tech company with the best engineering talent in the world that happens to make electric cars, but is aiming to disrupt the energy industry and many others. It's a bit like watching Apple when Steve Jobs was in control, but on steroids. Even beyond that, why do so many people like Tesla and Musk? It's because they're changing the world for the better and that inspires the people who can understand it. They want to be a part of that positive change.
TSLA dominates the new car market and is the most American car you can buy. Plus they own a lot of patents that are about to prove to be invaluable to battery tech. Elon is the single founder of the eco revolution. While others talked he decided to do. A true American hero who is just starting to tap into his potential. TSLA is not going anywhere but up even though the government is actively fighting their greatness because the current admistration hates the USA and our products. They won't be here on the next election cycle although they may be able to successfully bankrupt the country in the next year.
@@fartsunltd6981 "True American hero". "Citizenships: South Africa (1971-present) Canada (1971-present) United States (2002-present)" Anyhow, that (though funny) is irrelevant. There are plenty of car companies in the world and there will not be a single dominant one as people's tastes and financial situations differ.
The only reason I bought AMC at 3ish dollars last year was because I heard The Matrix was coming out in 2021 and I knew I had to watch it on the big screen. That's was my fundamentals lol
@@mb-3faze Why? He was actually trying to bring prices of drugs down. The real criminals are big pharma who keep raising prices every year and ensuring that their customers remain in debt and stuck with those drugs.
@@corail53 Straight quote from wikipedia "In September 2015, Shkreli was widely criticized when Turing obtained the manufacturing license for the antiparasitic drug Daraprim and raised its price by a factor of 56 (from US$13.50 to $750 per pill)." Agree that big pharma are also a bunch of criminals. What we need are people in government who actually care about US citizens - the trouble is that anyone like that is called a socialist and Americans are irrationally allergic to policies that actually help make their lives better.
Patrick- Thank you for your video presentation. It is like a college education in 22 minutes. I can't even explain "short selling" to my close friends- yet here you are detailing squeezes of worldwide historical interest!! TY
That Vanderbilt move had me cracking up. It's like I heard him saying, *sigh* "play stupid games, win stupid prizes." On a similar note related to successful timing, Michael Burry knew the exact entry to his short position once the alphabet mortgages were a thing. "pay option negatively-amortizing adjustable-rate no-pickles sauce-on-the-side mortgage"
I click for the FIN content. I stay for Patrick's Comedy easter eggs. "Even bigger than Tesla" (in ref to the biggest Auto stock bubble in history) lol.
Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance : Marc De Mesel, Annie Chen, Nate Stapleton,Timothy Baird, WIlam, Robertas, Hernan Merino, Random Encounter, Nieuwsbrief Ikwil, Bee Positive Consulting, hyunjung Kim, John Cadena, Ian Tracey, Callum McLean, Oscar, Simon Pena, Ed, Pavle Obradovic, Erik Van Ekelenburg, David O'Connor, Zak Patterson, Pjotr Bekkering, Alex, Robert W Proudfoot, pooh shmoo, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Milan Tomic, Mark Hooker, Artem Vasenin, P H, Sebastian, Michal Lacko, Peter Bočan, Michael Pierce, V Jordan, Gil, HalfwitHam, Mark Brophy, Patrick T, David Urdenata, Juan Valdez, Bruce Roberts, Chad Norman, Bruce Roberts, Shamikh Rana, Friday Guy, Marc De Mesel, Augusto Ramos, Soy Boomer Doomer, Bob Slartabartfast, Robert Feiler, Camil Dbouk, Erik Montesinos, Matthew Loos, Az Indragiri, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Dominik Auerbach, Gurmeet Kaushal, John Hall, Dara Mo, Josef Goergen, Wilbert Cheng, Daniel Talero, Cogitecture, Jaroslav Tupý, Trevor Lucey JB Weld, Alex, Sunny, Carlos Figuera, Peter Pomelov, Null065, Rick Thor, MeBerzerk, Henry Nguyen, Sola F, The Collier, Carlos Mejia, J Wadia, Bitcoin OG, easy boekhouding, Albert, Eugene Jung, Oisin Quinn, Daniel Cervini, Jonathon Yong, Iris Ji, Emil Nicolaie Perhinschi, Charles, Gerard Scott Eli Auto, Excks, Michael Li, Par Hedman, Praveen Mishra, Gerard Scott, joel köykkä, Areeb Ahmed, Luis Torres, Smith Vilcapoma, David Wang, Yazan Qaraqish, Rodolfo Cornetti, Daniel Winroth, johnny, Nick Jerrat, Chris Houston, Alastair Currie, Robert Griffin, Andrei, zizi Golo, Fab Vida, Constantin Petrenco, pawel irisik, NotAScam, James Halliday, 22 Dust, Carsten Baukrowitz, Heinrich, Arron T, Ben Brown, Brian Dennis, Stephen Mortimer (to The Moon), Ryan B. Hicks, B S, Liam, Logan Vrankovic, William Heaton, Paul McCourt, Daniel, Aaryan Koura, mikhail tyurin, Steven, Christopher Boersma, Dave Cooke, Ulf Lundblad, Dorothy Watson, Greg Blake, Simon Bone, Livermores Quant, The Collier Report, Scott Gardner, The Man Koala, Brian McCullough, Daniel S. Smith, Finance Student, Milton Danielsson, Tan Jin Da, Julie, Mohammad Rehman, James Wallace, Daniel Poellmann, Edosa Odigie, Dixon Yuen, joey smit, Josh Ge, Marek Novák, Charles Oosthuizen, Stamatis Drepaniotis Michael Smith, Etienne Cordonnier, Ahmed Hamadto, Chris Davey, Mike Farmwald, Kevin Davis, Michael A. Mayo, Lachezar Georgiev, Kamet Batra, Bradley Johnson, Sagar Gudi, Michael Chessar, Kate ATL, Tong Cheung, Lady Dje, James Barnes, Chris Hall, Kurt Johnston, ICBM Catcher Juan Valdes, KernelSC, Josh Garcia, Linn Engström, Veltsh, Konrad P-kala, Pastacat, Adam Vorting, Matthew McQuade, Christopher Lesner, freebird, Matt L, Kenneth WedMore Lund, erfective, Jason Young, Jonathan Kopnick, Peter Hendrickson, steel, MM420, Bastien, Tom Willett, Chris Whitehead, Anil Jason, Hany Abdulsamad, JOJO, Jason Butterley, AS7, Greg Thatcher, John Simpson, Ezekiel Templin, Robert M Daily, MrLuigi1138 Grecia Bate, Leszek Frankowski, Nam Nguyen, fang, Goutham, Priam Pillai, Karim THIBAULT, C, David R. Ingemi, Robert Wave, Dmitri Alexeev, Aaron Rose, Ethan Hernandez, Brett Turley, Claude Chevroulet, Adrian, Stephan Marosvary, Yigit Yargili Louis Julien, Jan Lukas Kiermeyer, Gearoid O Connor, Chuck Muchmore, Fredrick Saupe, Subliminal Transformation, Jason Horton, Alex McMahon, Adi, Ben, Kurt Mueller, Joaquin Madruga, Janusz Wieczorek, Federico Viscomi, DPhillips, S.Alw, Corgi, Mahdi, Burgerinn, Quinn Cone, Sam Doyle, QiKaiQian Asa Trimnell, Stephen, Joshua Rosenthal, Timotej Zat’ko, Frank Yashar, Michael Smith, Betterlife, Emilian Marius Tudor, Julian Aßmann, Cormac, Max Kaye, Ian Shearer, Nathan, Theodosius the Elder, Michael Kopřiva, Tinni, Goran Milivojevic and Yoshinao Kumagai
It's a losers game. When you look at statistics majority of short sellers lose money. You don't short a stock because you think it's overvalued. It can be even more overvalued and stay there for years until fundamentals catch
The Piggly Wiggly squeeze was mildly troubling but I'm not sure why. Were the rules governing stock listing requirements clear or did the exchange just create them on the fly? It seems counterintuitive that the owner would borrow $10 million without some good financial counsel and backing for his plan, so certainly someone could have foreseen that what he was doing would trigger delisting. Or no?
Maybe they made up the rules on the fly because they saw that he controlled almost the entire company and could severely manipulate the market with how many people were roped in?
In the old days, a short squeeze was a manipulation where a bunch of insiders(typically) would hold their long positions in margin accounts while bad news was released, then they would all move their shares to non-margin accounts triggering a mass of margin calls to cover all winthin a 3 day period which would send the stock into the stratosphere into which they would sell.
Clearly you missed Bomb Bumbadil the British man who 'accidentally' inserted a 57mm mortar round into .... The bomb squad was called to the ER. Not kidding.
I prefer to buy puts leaps. Risk is defined. I know how much I can lose. I can't get squeezed. I just lose the premiums I paid. I also don't make it more than 1% of my account, because that is just dumb. If I do straight up short a stock. I have a 1% stop loss or I am DCAing with a small position. I was short TSLA DCAing up to 1400 using the double down method. Basically my plan was short 5 shares at 1k 10 shares 1100 20 shares 1200 40 shares 1300 80 shares 1400. Then when the stock dropped down I covered for a profit. I also enter puts at 1180 and got paid right away with a 10% drop. So that was nice. I was only sort 75 shares and I had puts leaps. I have 1 puts leaps on TSLA at 1150 strike left only. A 10% drop = sell for profit -but I don't want to guess the bottom so keep the free one. I plan to buy more puts leaps at 1400 if it gets there. I am not paying attention to the stock or my 1 put expiring in 2023. I did start shorting again at 1150 I covered half on the last drop. I have a small account of 7 figures so I don't want to be short more 100 shares for an extended period of time. The Tesla bears trade bad. They should have stopped out and gone long to sell higher. The way you crash a stock is go long with a heavy position. Scale out as it rips higher. Then enter short. Don't fight the trend. If greater fools keep piling in then buy to sell to them higher. Duh. I bought TSLA at 630. I sold before earnings and didn't reenter. OH WELL. I did same thing on S&P inclusion I loaded up on shares 450s and sold 600 before inclusion. OH WELL. didn't see 900 coming lol.
Fun fact about Vanderbilt's maneuver on the Harlem is that he did it twice. Once against the city officials and the second time against the state officials who were shorting the stock. People thought his action with the city was good in punishing a corrupt city government but with the state not so much. Fear that one man had the power to punish a state the tried to wrong him was the main concern.
These historical type videos are cool, to see how the market used to work. Things could get pretty dicey before the DTCC introduced the ability for hedge funds to just fail to deliver tens or hundreds of millions of shares and then just 'warehouse' the shorts, that way they never have to lose any money and, more importantly, retail investors don't get to make any at the funds expense. And with the shift of almost all trading into dark pools and market makers selling far more shares than exist in order to prevent price movement that would go against their sibling hedge fund trades, its much easier for them to smooth things out and ensure that it's only the hedge funds that can make any substantial profits. The GameStop and AMC short squeezes will never squeeze, because of that ability to sell shares that do not exist, sell short without locating a share to borrow, fail to deliver and then simply get the short deleted by the DTCC.
Good morning, I see how everything has fallen in a year and a half and I wonder one thing, does anyone know if there is an index that indicates the short sale that there is at a certain moment and historically? Something like the VIX but to measure the short sale. Thank you
I appreciate that you don't neglect the fact that GME is still currently on-going. My main question is, during all these historical squeezes, was the buy button ever removed like it was on January for GME, which was set to PCO?
Not many retail investors were involved with all the other short squeezes. That’s why the GME and other memes came as such a surprise to the brokers and hedge funds since it was really the first of its kind.
""Many retail short sellers were wiped out by the short squeeze. While their assessment of the fundamentals had been entirely correct, " That is the primary reason that I do not short. Got to keep those first dollars I from my first job at Piggly Wiggly working! Haven't seen a Piggly Wiggly in a couple of decades though.
@@MrBloonbloon Tiktokkers are showing their investment strategy of do what Pelosi does, and they are almost guaranteed to turn a profit. I think she's the numbre 1 politician making money on stocks
As a short biased trader, I only take very small positions and manage them very closely. I've been stopped out or bailed only to see it go my way, but glad, because before it went my way, it went way of my way. Thank you for the video, it was very informative!
Patrick, have you heard about a short squeeze on the 2-10 treasury spread right now? Big move in the past week and I know guys who trade that spread are usually highly leveraged.
hey Patrick it would be awesome if you included references to each one of these anecdotes in the video description for those of us who want to learn more about them. thanks for the great content !
Lol omg there was a robinhood ad that interrupted at the worst possible time for them .... --I mean, no Patrick's channel is the best place for all companies to advertise 🧐
Cool stories. I participated in the short squeeze of a few stocks in the last year. Basically people on social media find a stock that's over-shorted with the right amount of available shares to cause the price to skyrocket. So it's a bit of a conspiracy by a large group of disassociated people, versus a hedgie, to corner the market of the stock. Even if the company is total dog poop. I made $1000 in a single day on one trade as the stock skyrocketed. With social media, you no longer need a big money manager to do a short squeeze. Shorts are a very dangerous thing to mess with.
can you explain, if a stock is shorted more then shares available to short, so a squeeze should come (or not), what happens to those who suddenly own surplus of shorted stocks? for easy example, 10 shares exist, someone shorts 11, buys back 10 of them whenever possible, what happens to him and his 1 surplussed shorted stock (that should technically be impossible to short to begin with)?
Shorts borrow the stock and sell it immediately hoping to buy it back when the price crashes and return the stock to the lender. There is nothing stopping the share they sold to be bought back by a broker that lends it back to another short. So a stock can get shorted more than 100% because of this.
Hello Patrick, love the informative videos! If there is any constructive criticism I can give is that it would be nice if you divided the video into seperate parts, and added a brief page inbetween stating the company name and time period, this would make it easier to follow where each subject starts and ends. Again, love the videos and keep pumping out the great content!
@@tgd02 I did, that’s not the point… I struggle a bit with concentration so sometimes I zone out and I miss a couple seconds, if there isn’t any pause I find myself having to skip backwards multiple times to get what he’s talking about.
@@Clapham888 smh it makes it way more structured and easier to understand, it's called constructive criticism. If he wants to change it he can, if he doesn't want to then nobody is forcing him, it was simply a suggestion.
Great content as usual. Would you consider to make a short video about long squeezes? It is obviously not that dramatic topic, but there is this interesting case when oil price fell to negative values, causing margin calls on long positions and perhaps other interesting examples.
The reason I've heard most consistently for people who were buying gamestop shares was either they were stickin it to the man or they were defending gamestop from the man because they love going to gamestop and don't want it to fail or be changed in ways they'll hate. They'll buy a share at 350 because they feel like they're helping prop up a place that they might spend a grand at this year and they want it to still be fun when they do it. It's almost like buying war bonds. The economics of it doesn't always come into play when the decision is made.
Shorted a percentage of my T$LA holdings, but I'm retaining a portion for the long term. Tesla's growth potential remains robust. I'm considering diversifying my 250K portfolio, but I'm uncertain about managing risks in my next move.
I agree, having the right plan is priceless. My portfolio is well-suited for any market and recently doubled since early last year. My CFP and I are aiming for a seven-figure goal, which might take another year to achieve.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Jennifer Leigh Hickman” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
The sad part here is the number of short sellers who were absolutely right about the company being a dog but still losing their shirts anyway. Less risky to find winners than losers.
@@Interrobang212 why? Do you have any evidence for that? Because there is a lot of evidence otherwise. Also fraud is a crime and uncovering it should be rewarded.
@@veeeevo can you indicate the efficiency? Because when you say efficiency, I just hear convenience, and manipulation. Especially when it comes to hedge funds trying to cell check stocks so they don’t have to pay any tax on gains.
A short seller pays an interest to a stock holder/liquidity provider/bank/whatever. That's profitable for holders (lenders) in the long run. One has to wonder whether the FUD is spread intentionally, so that more ppl short. How big is the short market? What if stonks go up partially because of lending?
They do go up because of lending. Expansionary OMOs ("money printer" in apespeak) typically trickle over quite a lot to the big financial institutions. These are the main participants of what is called securities lending (also called securities financing). As the word implies, securities lending is the practice of lending out securities in your portfolio to someone looking to borrow while you get some easy guaranteed interest payment on it. Does this deliberately try to bait short sellers? I would say no since the only ones getting baited are speculative short sellers and they typically don't make up that much of the short market. Keep in mind that there's other reasons to short a security too for example you may short in order to hedge other positions in your portfolio.
I always have been interested to visit United States of America I hope one day I can meet some one from there and get invited to meet that beautiful country, greetings from Mozambique!
PaddyBoy, I think you may have your facts wrong although maybe not. The Tesla/Hertz announcement came around the time of the announcement of the 3Q earnings in 2021. I went back and listened to your narrative a couple of times and really couldn't ascertain when the Short Selling Disaster in Tesla occurred. This is not criticism, just comment. I love your vids. Great delivery, and of course, the accent is wonderful. Keep it up. I'd love to see you give a talk on Leaps using Tesla as an example. Happy Holidays my good man.
Telsa has ruined a lot of short sellers and they all say after - Don't bet against a cult. Kalo was oddly enough one of the first WSB meme stocks - shkreli was a mod on that subreddit during that first year of it's existence.
Yup... never short Tesla for too long... Sometimes it’s ok to short Tesla for a day or a few days, but, that’s about it... A lot of ppl are looking to hold Tesla shares for long at the right price, including myself...
@@buildmotosykletist1987 yep, that's the people who make the trades. I'm trying to find the "balance" of the trade. A short is done on the premise the the stock is overpriced and will fall in the short term. Tesla is overpriced but it is a 'stupid' short as the collapse is not in the short term [reason: Musk's loans against his stock is large buffer]. It is how to balance the "cryptic/hidden" factors here.
Subscribe to The Daily Upside! (Free Business & Finance Newsletter) bit.ly/3lwt7LT
I had a Quick Big short squeeze with Porche luv, it was accelerating . It was a Internet Kindness moment. Kiss. Sometimes you say things that dum you down .Your advertisements have already been in my mind sweets. You under estimate.
Patrick are you the founder of the news letter??
If the newsletter is free why I need a code?
I am surprised, Micheal burry isn't in the list🧐🤔
Awesome video!
An important note, $5 million in Vanderbilt's time is about $167 million dollars in today's money
Thanks for the education.
Hands down the best and most underrated financial channel on youtube. No fluff no bullshit no hype . Common sense and facts.
And undying love for Tesla and Saint Elon.
Nah not even top 10.
@@ecognitio9605 disagreed.
Bunch of Boyle bear, Muskpuppies in the subcomments.
@@brodyalden Patrick's fine. He's interesting and a very smart man. Inability to understand what's coming in the future isn't a crime. Apple, Microsoft, Google and Amazon were all laughed at. Tesla will eventually be larger than any of them. Musk has an eye for areas primed for disruption and he's tireless. PayPal, SpaceX and Tesla are examples of what's to come. Tesla isn't a car company. It's a high tech company with the best engineering talent in the world that happens to make electric cars, but is aiming to disrupt the energy industry and many others. It's a bit like watching Apple when Steve Jobs was in control, but on steroids. Even beyond that, why do so many people like Tesla and Musk? It's because they're changing the world for the better and that inspires the people who can understand it. They want to be a part of that positive change.
12:54 “They were even bigger than Tesla.”
A deadpan, factual observation. Loaded with implication.
TSLA dominates the new car market and is the most American car you can buy. Plus they own a lot of patents that are about to prove to be invaluable to battery tech. Elon is the single founder of the eco revolution. While others talked he decided to do. A true American hero who is just starting to tap into his potential. TSLA is not going anywhere but up even though the government is actively fighting their greatness because the current admistration hates the USA and our products. They won't be here on the next election cycle although they may be able to successfully bankrupt the country in the next year.
Hilarious!
@@fartsunltd6981 calm down lad
Lol awesome comment and delivery!
@@fartsunltd6981 "True American hero". "Citizenships:
South Africa (1971-present)
Canada (1971-present)
United States (2002-present)"
Anyhow, that (though funny) is irrelevant. There are plenty of car companies in the world and there will not be a single dominant one as people's tastes and financial situations differ.
Vanderbilt’s no-mercy approach warms the heart. And it sounds like those officials deserved every bit of it.
Such a Chad move
Reminds me of retail vs the hedgefunds with these meme stock squeezes
Especially considering it was mass transit in a majority-minority part of the city. In the 1860s. The balls on that man
Agreed.
"So you have chosen financial ruin"
The only reason I bought AMC at 3ish dollars last year was because I heard The Matrix was coming out in 2021 and I knew I had to watch it on the big screen. That's was my fundamentals lol
Cheaper than the ticket :D
Did you sell?
@@samsonsoturian6013 yea because I bought options
Invest in what you know, great work
Dune for me
12:12 the fact that that is a VW bug with a body kit to make it look like a porche makes this so great.
"It turns out Shrekelli managed a diversified basket of fraud."😂😂😂🤣🤣🤣
Such a great line 😅
The dead pan delivery is just **chefs kiss**
Nothing was more pleasing as when that man was put behind bars.
@@mb-3faze Why? He was actually trying to bring prices of drugs down. The real criminals are big pharma who keep raising prices every year and ensuring that their customers remain in debt and stuck with those drugs.
@@corail53 Straight quote from wikipedia "In September 2015, Shkreli was widely criticized when Turing obtained the manufacturing license for the antiparasitic drug Daraprim and raised its price by a factor of 56 (from US$13.50 to $750 per pill)."
Agree that big pharma are also a bunch of criminals. What we need are people in government who actually care about US citizens - the trouble is that anyone like that is called a socialist and Americans are irrationally allergic to policies that actually help make their lives better.
Patrick- Thank you for your video presentation. It is like a college education in 22 minutes. I can't even explain "short selling" to my close friends- yet here you are detailing squeezes of worldwide historical interest!! TY
I watch this episode just to hear you say piggly wiggly repeatedly It makes my day when I am down.
That Vanderbilt move had me cracking up. It's like I heard him saying, *sigh* "play stupid games, win stupid prizes."
On a similar note related to successful timing, Michael Burry knew the exact entry to his short position once the alphabet mortgages were a thing. "pay option negatively-amortizing adjustable-rate no-pickles sauce-on-the-side mortgage"
Patrick, you’re the digital nation’s national treasure. I love your videos, your humor, and the content you choose to deliver. Thanks!
Get home from work, make a cup of coffee, prop my feet up on the desk, and Patrick has a new video out. Life is good.
I click for the FIN content. I stay for Patrick's Comedy easter eggs. "Even bigger than Tesla"
(in ref to the biggest Auto stock bubble in history) lol.
Shorting a .44 cent stock is insane. The most you can make is .44 per share and the most you can lose is.......well, UNLIMITED.
Thank you Patrick.
Education with humour, the best way to learn.
Subs are going up and I hope you enjoy and continue.
Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance : Marc De Mesel, Annie Chen, Nate Stapleton,Timothy Baird, WIlam, Robertas, Hernan Merino, Random Encounter, Nieuwsbrief Ikwil, Bee Positive Consulting, hyunjung Kim, John Cadena, Ian Tracey, Callum McLean, Oscar, Simon Pena, Ed, Pavle Obradovic, Erik Van Ekelenburg, David O'Connor, Zak Patterson, Pjotr Bekkering, Alex, Robert W Proudfoot, pooh shmoo, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Milan Tomic, Mark Hooker, Artem Vasenin, P H, Sebastian, Michal Lacko, Peter Bočan, Michael Pierce, V Jordan, Gil, HalfwitHam, Mark Brophy, Patrick T, David Urdenata, Juan Valdez, Bruce Roberts, Chad Norman, Bruce Roberts, Shamikh Rana, Friday Guy, Marc De Mesel, Augusto Ramos, Soy Boomer Doomer, Bob Slartabartfast, Robert Feiler, Camil Dbouk, Erik Montesinos, Matthew Loos, Az Indragiri, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Dominik Auerbach, Gurmeet Kaushal, John Hall, Dara Mo, Josef Goergen, Wilbert Cheng, Daniel Talero, Cogitecture, Jaroslav Tupý, Trevor Lucey JB Weld, Alex, Sunny, Carlos Figuera, Peter Pomelov, Null065, Rick Thor, MeBerzerk, Henry Nguyen, Sola F, The Collier, Carlos Mejia, J Wadia, Bitcoin OG, easy boekhouding, Albert, Eugene Jung, Oisin Quinn, Daniel Cervini, Jonathon Yong, Iris Ji, Emil Nicolaie Perhinschi, Charles, Gerard Scott Eli Auto, Excks, Michael Li, Par Hedman, Praveen Mishra, Gerard Scott, joel köykkä, Areeb Ahmed, Luis Torres, Smith Vilcapoma, David Wang, Yazan Qaraqish, Rodolfo Cornetti, Daniel Winroth, johnny, Nick Jerrat, Chris Houston, Alastair Currie, Robert Griffin, Andrei, zizi Golo, Fab Vida, Constantin Petrenco, pawel irisik, NotAScam, James Halliday, 22 Dust, Carsten Baukrowitz, Heinrich, Arron T, Ben Brown, Brian Dennis, Stephen Mortimer (to The Moon), Ryan B. Hicks, B S, Liam, Logan Vrankovic, William Heaton, Paul McCourt, Daniel, Aaryan Koura, mikhail tyurin, Steven, Christopher Boersma, Dave Cooke, Ulf Lundblad, Dorothy Watson, Greg Blake, Simon Bone, Livermores Quant, The Collier Report, Scott Gardner, The Man Koala, Brian McCullough, Daniel S. Smith, Finance Student, Milton Danielsson, Tan Jin Da, Julie, Mohammad Rehman, James Wallace, Daniel Poellmann, Edosa Odigie, Dixon Yuen, joey smit, Josh Ge, Marek Novák, Charles Oosthuizen, Stamatis Drepaniotis Michael Smith, Etienne Cordonnier, Ahmed Hamadto, Chris Davey, Mike Farmwald, Kevin Davis, Michael A. Mayo, Lachezar Georgiev, Kamet Batra, Bradley Johnson, Sagar Gudi, Michael Chessar, Kate ATL, Tong Cheung, Lady Dje, James Barnes, Chris Hall, Kurt Johnston, ICBM Catcher Juan Valdes, KernelSC, Josh Garcia, Linn Engström, Veltsh, Konrad P-kala, Pastacat, Adam Vorting, Matthew McQuade, Christopher Lesner, freebird, Matt L, Kenneth WedMore Lund, erfective, Jason Young, Jonathan Kopnick, Peter Hendrickson, steel, MM420, Bastien, Tom Willett, Chris Whitehead, Anil Jason, Hany Abdulsamad, JOJO, Jason Butterley, AS7, Greg Thatcher, John Simpson, Ezekiel Templin, Robert M Daily, MrLuigi1138 Grecia Bate, Leszek Frankowski, Nam Nguyen, fang, Goutham, Priam Pillai, Karim THIBAULT, C, David R. Ingemi, Robert Wave, Dmitri Alexeev, Aaron Rose, Ethan Hernandez, Brett Turley, Claude Chevroulet, Adrian, Stephan Marosvary, Yigit Yargili Louis Julien, Jan Lukas Kiermeyer, Gearoid O Connor, Chuck Muchmore, Fredrick Saupe, Subliminal Transformation, Jason Horton, Alex McMahon, Adi, Ben, Kurt Mueller, Joaquin Madruga, Janusz Wieczorek, Federico Viscomi, DPhillips, S.Alw, Corgi, Mahdi, Burgerinn, Quinn Cone, Sam Doyle, QiKaiQian Asa Trimnell, Stephen, Joshua Rosenthal, Timotej Zat’ko, Frank Yashar, Michael Smith, Betterlife, Emilian Marius Tudor, Julian Aßmann, Cormac, Max Kaye, Ian Shearer, Nathan, Theodosius the Elder, Michael Kopřiva, Tinni, Goran Milivojevic and Yoshinao Kumagai
It's a losers game. When you look at statistics majority of short sellers lose money. You don't short a stock because you think it's overvalued. It can be even more overvalued and stay there for years until fundamentals catch
The Piggly Wiggly squeeze was mildly troubling but I'm not sure why. Were the rules governing stock listing requirements clear or did the exchange just create them on the fly?
It seems counterintuitive that the owner would borrow $10 million without some good financial counsel and backing for his plan, so certainly someone could have foreseen that what he was doing would trigger delisting. Or no?
Maybe they made up the rules on the fly because they saw that he controlled almost the entire company and could severely manipulate the market with how many people were roped in?
In the old days, a short squeeze was a manipulation where a bunch of insiders(typically) would hold their long positions in margin accounts while bad news was released, then they would all move their shares to non-margin accounts triggering a mass of margin calls to cover all winthin a 3 day period which would send the stock into the stratosphere into which they would sell.
Its sad it has to be stated that VW was "even bigger" then Tesla. They still have 10 times higher sale volume then tiny Tesla
Sales volume and profit doesn’t mean anything in the 2020s
Yet Tesla's valuation is more than all the major car manufacturers combined. Don't bet against a cult is right...
But Tesla is Cool, that has gotta be worth 100X Tesla's reasonable valuation. It is not like Elon Musk is selling his Tesla Stock, ooops.
@@Foolish188 your comment has only got better with time
He said bigger than.
Friday so needed a shot of Patrick humor and insights.
Clearly you missed Bomb Bumbadil the British man who 'accidentally' inserted a 57mm mortar round into .... The bomb squad was called to the ER. Not kidding.
Same
Piggly Wiggly short squeeze. Such a great name for a cautionary tale! Haha
1:59 Politicians are not your friends for sure.
This Vanderbilt guy is a hero!!!
my great great uncle was part of the vanderbilt railway he melted into the steel that was in the railroad
yeah, any guy whose fortune relies on slave labor on railroads must be a hero to dumb people or libertarians... as if there's a distinction.
You don't mess with the Commodore
He wasnt smart, he was just SUPER RICH! The super rich always win!
I prefer to buy puts leaps. Risk is defined. I know how much I can lose. I can't get squeezed. I just lose the premiums I paid. I also don't make it more than 1% of my account, because that is just dumb.
If I do straight up short a stock. I have a 1% stop loss or I am DCAing with a small position. I was short TSLA DCAing up to 1400 using the double down method. Basically my plan was short 5 shares at 1k 10 shares 1100 20 shares 1200 40 shares 1300 80 shares 1400. Then when the stock dropped down I covered for a profit. I also enter puts at 1180 and got paid right away with a 10% drop. So that was nice. I was only sort 75 shares and I had puts leaps. I have 1 puts leaps on TSLA at 1150 strike left only. A 10% drop = sell for profit -but I don't want to guess the bottom so keep the free one. I plan to buy more puts leaps at 1400 if it gets there. I am not paying attention to the stock or my 1 put expiring in 2023.
I did start shorting again at 1150 I covered half on the last drop. I have a small account of 7 figures so I don't want to be short more 100 shares for an extended period of time. The Tesla bears trade bad. They should have stopped out and gone long to sell higher.
The way you crash a stock is go long with a heavy position. Scale out as it rips higher. Then enter short. Don't fight the trend. If greater fools keep piling in then buy to sell to them higher. Duh. I bought TSLA at 630. I sold before earnings and didn't reenter. OH WELL. I did same thing on S&P inclusion I loaded up on shares 450s and sold 600 before inclusion. OH WELL. didn't see 900 coming lol.
The editing is subtle, professional, but somehow really funny sometimes. If you have an editor they’re amazing
What I have learned from this video is that short selling is a game with fire. I'll stay clear of that.
game with fire for those with money to burn
"managed a diversified basket of frauds" .. lol
cant love the humor enough
This has became my favorite Finance YT channel! Amazing content!
Fun fact about Vanderbilt's maneuver on the Harlem is that he did it twice. Once against the city officials and the second time against the state officials who were shorting the stock. People thought his action with the city was good in punishing a corrupt city government but with the state not so much. Fear that one man had the power to punish a state the tried to wrong him was the main concern.
GigaChad energy
"Wah wah, I lost money. Wah, Wah,"
- State officials
I cant believe Patrick is saying the words “piggly wiggly”🤣
19:35 "evil Short sellers" *inserts a pic of the actual Kenny G* lmaoooooo IYKYK ;)
Buy, hodl, DRS $GME 💎🙌🏻
These historical type videos are cool, to see how the market used to work. Things could get pretty dicey before the DTCC introduced the ability for hedge funds to just fail to deliver tens or hundreds of millions of shares and then just 'warehouse' the shorts, that way they never have to lose any money and, more importantly, retail investors don't get to make any at the funds expense. And with the shift of almost all trading into dark pools and market makers selling far more shares than exist in order to prevent price movement that would go against their sibling hedge fund trades, its much easier for them to smooth things out and ensure that it's only the hedge funds that can make any substantial profits. The GameStop and AMC short squeezes will never squeeze, because of that ability to sell shares that do not exist, sell short without locating a share to borrow, fail to deliver and then simply get the short deleted by the DTCC.
Always look forward to your videos
You and Tom Nash are my go to channels for financial information and news
very interesting especially with Vanderbuilt
Good morning, I see how everything has fallen in a year and a half and I wonder one thing, does anyone know if there is an index that indicates the short sale that there is at a certain moment and historically? Something like the VIX but to measure the short sale. Thank you
I appreciate that you don't neglect the fact that GME is still currently on-going. My main question is, during all these historical squeezes, was the buy button ever removed like it was on January for GME, which was set to PCO?
Not many retail investors were involved with all the other short squeezes. That’s why the GME and other memes came as such a surprise to the brokers and hedge funds since it was really the first of its kind.
There was political meddling in all rail stocks. There still is if rumors are to be believed.
""Many retail short sellers were wiped out by the short squeeze. While their assessment of the fundamentals had been entirely correct, " That is the primary reason that I do not short. Got to keep those first dollars I from my first job at Piggly Wiggly working! Haven't seen a Piggly Wiggly in a couple of decades though.
That first example is a clear conflict of interest and illegal in modern times, but was it illegal back then?
I mean doesnt pelosi trade a shitton off stocks to this day?
@@MrBloonbloon Tiktokkers are showing their investment strategy of do what Pelosi does, and they are almost guaranteed to turn a profit. I think she's the numbre 1 politician making money on stocks
@@MrBloonbloon no. he doesn't
"The Piggly Wiggly Short Squeeze."
I have nothing to add, I just found this sentence funny.
Bro - FANTASTIC Video! Thanks for the history lesson. I’m going to share this with my massive following!
As a short biased trader, I only take very small positions and manage them very closely. I've been stopped out or bailed only to see it go my way, but glad, because before it went my way, it went way of my way. Thank you for the video, it was very informative!
City councils.... scoundrels all . Great example. Vanderbilt was visionary .
Vanderbilt delivered a true burn! What a guy!
Patrick, have you heard about a short squeeze on the 2-10 treasury spread right now? Big move in the past week and I know guys who trade that spread are usually highly leveraged.
That porsche picture got me lol genius move using a vw bug/ 911 combo while talking about porsche and vw 😂🥰
hey Patrick it would be awesome if you included references to each one of these anecdotes in the video description for those of us who want to learn more about them. thanks for the great content !
Lol omg there was a robinhood ad that interrupted at the worst possible time for them .... --I mean, no Patrick's channel is the best place for all companies to advertise 🧐
Even bigger than tesla, you have a good sense of humor.
OK, the picture of the guy (Kenny G?) holding the saxophone?? Great video!
Patrick, I love your channel. Thank you!
Patrick. I feel like I am back in school, Enjoy your content.
Hey Patrick. Can you do a video on the SIE exam? I just started studying for 7 and there's alot to it and hard to know where to start.
Thank you for this interesting and informative video! I learned more about the hazards of shorting that I had not considered before.
Hey! Martin Shkreli made it to the list! so proud 🥳🥳🥳! OMG!
There’s good reason and history behind the old saying “we just got railroaded” lol 😂
You can't fight city hall.
Vanderbilt: Hold my vodka martini.
Cool stories. I participated in the short squeeze of a few stocks in the last year. Basically people on social media find a stock that's over-shorted with the right amount of available shares to cause the price to skyrocket. So it's a bit of a conspiracy by a large group of disassociated people, versus a hedgie, to corner the market of the stock. Even if the company is total dog poop.
I made $1000 in a single day on one trade as the stock skyrocketed.
With social media, you no longer need a big money manager to do a short squeeze. Shorts are a very dangerous thing to mess with.
This was Fascinating! I had never heard any of these stories. Thank you. subscribed.
Most videos I only watch once. But yours are so good I have to watch them several times.
Excellent content and critical analysis.
can you explain, if a stock is shorted more then shares available to short, so a squeeze should come (or not), what happens to those who suddenly own surplus of shorted stocks?
for easy example, 10 shares exist, someone shorts 11, buys back 10 of them whenever possible, what happens to him and his 1 surplussed shorted stock (that should technically be impossible to short to begin with)?
Shorts borrow the stock and sell it immediately hoping to buy it back when the price crashes and return the stock to the lender. There is nothing stopping the share they sold to be bought back by a broker that lends it back to another short. So a stock can get shorted more than 100% because of this.
You should have shown the famous "I am not a cat" statement by Keith while under oath
12:07 That is one AWESOME VW 959!!!!
Hello Patrick, love the informative videos!
If there is any constructive criticism I can give is that it would be nice if you divided the video into seperate parts, and added a brief page inbetween stating the company name and time period, this would make it easier to follow where each subject starts and ends.
Again, love the videos and keep pumping out the great content!
Bro just watch the whole thing not even that long
@@tgd02 I did, that’s not the point…
I struggle a bit with concentration so sometimes I zone out and I miss a couple seconds, if there isn’t any pause I find myself having to skip backwards multiple times to get what he’s talking about.
@@donb2527 That's a you problem though, don't make it his problem.
@@Clapham888 smh it makes it way more structured and easier to understand, it's called constructive criticism. If he wants to change it he can, if he doesn't want to then nobody is forcing him, it was simply a suggestion.
@@Clapham888 damn he just proposing something to better the video format and y’all start acting like a dick
Thank you Patrick for making great videos, I came to know your channel recently and I referred your channel to my friend.
I'm surprised you didn't talk about Phil Falcone and the MAAX zips (which you have mentioned in another video).
Best video so far 👌🏻 thank you
Good to see you tubers talking about short selling. These new retail investors need to learn that they can short sell too.
US CAPE was 39 on 29 October 2021. How high do you think it will go?
This channel is so underrated and undervalued!!!❤️🙌🏼🙏🏽👍🏼😎
17:26 a diversified basket of frauds..
lol :D
1:57 Boy, what a dangerous rogue's gallery!
He said Piggly wiggly... 🤪
Good video and a reminder to not short unless you have good financials and understanding of the business.
Hello Patrick, would you make a video with your views on the current US equity market?
Great content as usual. Would you consider to make a short video about long squeezes? It is obviously not that dramatic topic, but there is this interesting case when oil price fell to negative values, causing margin calls on long positions and perhaps other interesting examples.
More laughs in this video than the last 10 years of SNL
One the most informative channel on the UA-cam when it come to security market
The reason I've heard most consistently for people who were buying gamestop shares was either they were stickin it to the man or they were defending gamestop from the man because they love going to gamestop and don't want it to fail or be changed in ways they'll hate. They'll buy a share at 350 because they feel like they're helping prop up a place that they might spend a grand at this year and they want it to still be fun when they do it. It's almost like buying war bonds. The economics of it doesn't always come into play when the decision is made.
And those people are called suckers.
Just started watching now. If AMC and/or GME is not on this list I will build a snowman, and then drive over it.
Shorted a percentage of my T$LA holdings, but I'm retaining a portion for the long term. Tesla's growth potential remains robust. I'm considering diversifying my 250K portfolio, but I'm uncertain about managing risks in my next move.
Everyone needs a Margin of Safety in their portfolios and just remember, It's time in the market versus timing the market.
I agree, having the right plan is priceless. My portfolio is well-suited for any market and recently doubled since early last year. My CFP and I are aiming for a seven-figure goal, which might take another year to achieve.
@84gaynor I've been considering getting one, but haven't been proactive about it. Can you recommend yours? I could really use some assistance.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Jennifer Leigh Hickman” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thanks a lot for this. I just checked her out now and I sent her an email. I hope she gets back to me soon.
The sad part here is the number of short sellers who were absolutely right about the company being a dog but still losing their shirts anyway. Less risky to find winners than losers.
Eh I got no sympathy for short sellers. The excuse of price discovery is weak.
@@Interrobang212 why? Do you have any evidence for that? Because there is a lot of evidence otherwise. Also fraud is a crime and uncovering it should be rewarded.
@@niveaulimbo6101 Well brokerages breaking their own rules and saving short sellers is also unethical.
@@Interrobang212 Short sellers help immensely with market efficiency. Do you not understand this?
@@veeeevo can you indicate the efficiency? Because when you say efficiency, I just hear convenience, and manipulation.
Especially when it comes to hedge funds trying to cell check stocks so they don’t have to pay any tax on gains.
Love the subtle burns
Truly an excellent storyteller!
A short seller pays an interest to a stock holder/liquidity provider/bank/whatever. That's profitable for holders (lenders) in the long run. One has to wonder whether the FUD is spread intentionally, so that more ppl short. How big is the short market? What if stonks go up partially because of lending?
They do go up because of lending. Expansionary OMOs ("money printer" in apespeak) typically trickle over quite a lot to the big financial institutions. These are the main participants of what is called securities lending (also called securities financing).
As the word implies, securities lending is the practice of lending out securities in your portfolio to someone looking to borrow while you get some easy guaranteed interest payment on it.
Does this deliberately try to bait short sellers? I would say no since the only ones getting baited are speculative short sellers and they typically don't make up that much of the short market. Keep in mind that there's other reasons to short a security too for example you may short in order to hedge other positions in your portfolio.
SEC report said that Gamestop spike in january was purely retail buying and that shorts didnt closed their positions, look it up
I always have been interested to visit United States of America I hope one day I can meet some one from there and get invited to meet that beautiful country, greetings from Mozambique!
PaddyBoy, I think you may have your facts wrong although maybe not. The Tesla/Hertz announcement came around the time of the announcement of the 3Q earnings in 2021. I went back and listened to your narrative a couple of times and really couldn't ascertain when the Short Selling Disaster in Tesla occurred. This is not criticism, just comment. I love your vids. Great delivery, and of course, the accent is wonderful. Keep it up. I'd love to see you give a talk on Leaps using Tesla as an example. Happy Holidays my good man.
Lovely video. But please explain the Kenny G reference, because I didnt get it.
Apparently, Kenny G the Saxophonist took a lot of abuse on twitter this year, as angry traders were @ing him thinking he was Ken Griffin.
Kenny G!!! Yes!. Excellent work as always!
I know nothing about finance or trading, bit this guy is so entertaining i cannot stop watching
The point of the memestonk thing is that investors, through Reddit or discord communities can find strategies as a virtual board of directors.
Similar to the Northern Railroad story, someone should teach Robinhood a lesson.
great video !
These stories were awesome
Telsa has ruined a lot of short sellers and they all say after - Don't bet against a cult. Kalo was oddly enough one of the first WSB meme stocks - shkreli was a mod on that subreddit during that first year of it's existence.
Yup... never short Tesla for too long...
Sometimes it’s ok to short Tesla for a day or a few days, but, that’s about it...
A lot of ppl are looking to hold Tesla shares for long at the right price, including myself...
Short selling: How do you analyze who bears the cost and who bears the risk?
The Bulls.
@@buildmotosykletist1987 yep, that's the people who make the trades. I'm trying to find the "balance" of the trade. A short is done on the premise the the stock is overpriced and will fall in the short term. Tesla is overpriced but it is a 'stupid' short as the collapse is not in the short term [reason: Musk's loans against his stock is large buffer]. It is how to balance the "cryptic/hidden" factors here.
Berkshire Hathaway short squeeze here we come