Why I Don't Short Stocks
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- Опубліковано 3 кві 2020
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Warrior Trading // Ross Cameron // Day Trade Warrior
Ross is so humble. Love this guy.
Thanks Michael!
Facts
I’ve been trading for years and I’ve never really watched him but started watching him and I have to say I’m really enjoying his honesty and I can relate to everything he is saying! Very honest and realistic trader and showing all the strategies and emotions of trading!
“Bear” with me, no pun intended haha 😂
Hahahahaha!!!
ROFL! Dayum
LMAO...nice!!!!
Ross I haven't been keeping up with you these past few days because I'm in New York but I figured all the profits you were making this week were from shorting and I'm glad you made this video it confirms my thoughts on shorting. Thanks again stay inside
Happy to share Hector!
Great explanation, I actually learned something. I was actually thinking about trying short selling, but now I know, I can't because I don't have a margin account. Thanks Ross
Glad the video helped!
Thank you for this great info. I'm new and was wondering what shorts was all about . Thanks . And IV been watching u. And it's much better ending your day at noon up then ending your day at 4 down. Thanks again
You are so welcome!
On the service, to someone not as aware you outline the difference very well that shorting is not just the opposite of long strategies. It is inclusive of all of the mental time and watching to find that right entry. And where you are watching for long entries, you are outside the winds of holding on your longs. Well expressed Ross!
Glad you enjoyed Neil!
Your content is next level, thanks for everything you’re doing here. I might just drop shorting all together it tends to go badly for me
You're welcome Morgan!
I like this commentary/confession videos more than the "trades recap")). Thanks Ross
Thanks for watching! Glad you enjoyed it!
Ross you're super motivating bro. I haven't joined warrior trading yet, but i'm part of other trading groups, and i swair i learned more from your free videos than i have from spending 8 hours a day in some of these groups chats.
Thank you!
The other reason maybe worth mentioning here from a day trading standpoint is that on a choppy day when a stock may be moving up and down but never resolve to either side, playing both short and long can help rack up losses very quickly until you realize it. To make matters worse, on days like that it's often that the movements get smaller as the day goes on and price discovery narrows, leaving you squarely in the RED.
Thanks for sharing Sohail!
It is so amazing how you can explain complex things. Born to be an educator. Thanks Ross.
I appreciate that! Thanks Max!
Thanks for taking the time to do the video Ross, could you do one that covers your hot keys and when you place a order on limit or market, and when you sell on the bid or ask and if you sell a market or limit order. Thanks!
Alan, I only use limit orders.
I'm just starting out, I've tried both swing trading in the long for large-cap and day trading on the short for small-cap, made money both ways. I feel I'm more confident and excited about shorting. I'm very cautious, especially with the fees. I wouldn't try though with an account below $3000. I think that's the minimum where you can afford at least 100-200 shares so your commission per stock isn't as high and you can benefit from a small price change. Yes, it will take much longer to scale but less risk and lower ROI. Every trade is a lesson for me and I don't rush to place a trade until I see that perfect setup. I also leave a lot of money on the table but the goal is to stay green on the day. Some days I just make 1-2 trades and some days none. I also plan my trades (entry, exit, profit-taking and stops), review and analyze them, to see what I did wrong and what could I have done better. Love your videos and watch them daily. I also participated in your and SMB's webinars. They were really useful! Thanks a lot for the live trade days and daily morning plans. When I make 100k in earnings I promise to send you my broker statement and thank you for being the inspiration! Wish you, your family and your company the very best! Thank you for helping us change our lives!
It sounds like you have a great plan! The best way for you to learn more about how we can help you get started with your trading would be to join us in the next live Warrior Trading webinar. The webinar is free to join, and you will receive a copy of my best selling ebook "How To Day Trade" just for sticking around until the Q&A! You can learn more and register here, if you're interested: www.warriortrading.com/free-day-trading-class/
@@DaytradeWarrior thank you, I've already attended your webinar and finished reading your book. It was really useful!
Hi Ross. I really appreciate you taking the time to describe this particular trading strategy. You've taken hours of research and condensed it into a comprehendable 15 minute video. I was on the fence as to whether it was something I wanted to try. I can see clearly that it's something I personally want to avoid - at least for now. I've been following Warrior Trading for some time now, and I just wanted you to know that I particularly enjoy watching your videos where you create your watchlist, and then the recap...very informative. Thank you!
Happy to help Jay, thanks for the comment!
Thank you so much for your generosity in explaining all of these concepts!
It's my pleasure Patricia!
The amount of accurate and free information you give is astonishing!!!!
Thank you!!
Nice vid, I agree totally. When I want to short I look at options and cfd's.
That's one route to go.
Understanding where shorts would come, would likely improve your exists
True!
In today’s example, a LOT of shorts were being closed before EOD!
Ross, how to you pick stock to trade every morning? Scanners or watch-list?
After spending a year learning the long side, I began to learn the short side... it really can scramble your head switching back and forth. Like everything, it takes a lot of practice before you get comfortable with it, and it is easy to forget in the heat of it which direction you are going! My strategy requires both long and short, so I've got "bias rules" regarding trend lines as to when it is "okay" for me to long verse short. It definitely takes a LOT of practice. I'm about 11 months into it, and I'm comfortable, but I made lots of mistakes getting here lol!
It can be a lot that's for sure. Stick with it!
Very true Ross people hesitate to buy or buy in bits but when price comes crashing the panic causes deeper effects or steep moves that's why I find myself shorting fx more but buying was cool trend trading beginner style.
Nice job welldone Ross
There's certainly opportunities on both sides.
@@DaytradeWarrior very true Ross with every body having a special bias
Ross, as I am a noob to day-trading, I thought this video was great. Easy to understand and some of the info you shared was brand new to me. Please keep putting out great content!
Glad to hear it, thanks for watching!
Sorry bout the headache man, I get em also, too much screen time maybe? Great info on long/short trading, here’s my question, what about hard stops on the short side? That would end the worry of exponential loss right?
That could be it MOMO, using hard stops is one way to manage your risk for sure.
I totally agree with you. I personally like going long on a trade versus shorting a stock. Easier to get that mentality of what is actually going on than with short sell.
All about finding what works for you.
Thanks Ross. Simple explanation was enough for me to decide short selling is not for me. Too many restrictions, too much cost, too much risk.
I'm glad I could help you make that decision.
Great video. Good analogy. Really made me think, especially that the buying long position means your buying value (hopefully;). Thanks. Hope the headache clears up soon.
For sure, thanks Trevor!
Thanks for these helpful explanations pointing out the specifics of the shortselling business.
Damn I’m glad I found this video. GREAT JOB, excellent, ON POINT, THSNK U
You're welcome Dylan!
Love your videos buddy , been watching you for a while , very very informative
Thanks, Chris!
I would personally love the option to be able to flip long and short but that would mean i need margin which A. would put me under the PDT rule and B. exposes me to more potential risk. As a newbie id rather perfect long entries first. Green every day last week so am feeling encouraged at this point!
Congrats on the green streak!!
Thankx ross, lots of thumbs up for this topic
My pleasure! Thanks for the support.
That was a great vid and one I needed to see. Ty Ross
Very glad I watched this great explanation of shorting. Thank you.
You're welcome Scott!
Thanks Ross. Good info explained well. Times like now have been a short bias traders dream, since like William O‘’Neal always said 3 out of 4 stocks follow the market trend. There were plenty of short opportunities with so many stocks valued 2 to 3 SD’s from the mean.
I'm sure some are doing very well!
you are a wonderful teacher THANK YOU
You're welcome!
Wonderful video! Thank you Ross!
Glad you liked it!
Hi Ross,
Reservation/borrowing fees for short selling is extremly small fee, usually tenth of precent yearly. so if you plan to short for few days, it is neglible.
in addition, fear is stronger then greed, so short selling profits will be made usually faster then long position adding to that, for long positions you MUST have scanners and didnt talk about pump&dump manipulations. still, as you said, eventually, each trader trades what fits him.
Thanks for you videor, you are awsome.
I am aware, however, with commissions and fees on top it can really add up.
thx you so much that helped clear up shorting. I was wondering about it - all the youtubers casually say: "short this short that," yet in my account - I didn't even see how it could be happening. And thank you for the hedging comment as well, that helped clear up a bit of confusion I had toward it. Your video made a lot of sense, excellent analogy with the righty lefty comparison. Thank you so much for doing this, us noob traders need support too haha!
Glad to hear I could help, thanks for watching!
Summer 2001 is also when I started, tho at the time I was operating a company, so I found it was hard to do both, had to give up trading. Now that Im retired Im just now taking it back up again, Im having to re learn the fundamentals all over again. Thanks Ross for all the info. I hear you talk about Vermont, I was born in Montpelier, 8 blocks from the Capitol.
That's awesome, thanks for sharing!
Thank you for another awesome vid durning these sad times man!
Glad you like them!
Ross is right about this. Once you're in a trade its difficult to shift your bias. I trade both but that is before taking a position; once you're in the trade shifting your bias is difficult. Even gurus I've seen try to switch up mid-trade end up over-correcting: long - short - - no long - no bigger short - oops - long - bigger long --- overtrading -- revenge trading. The net result is that you take a loss or if you do make a profit, that all goes to the broker.
It's easy to fall into that trap. Thanks for watching!
Thank u Ross i am following u for over 3 years now and i have learned a lot from u!
Thank you!!
Thank you so much Ross!
My pleasure!
Good video. For 2 years of trading I’ve learned that shorting penny stocks is the easiest. Most penny stock traders are beginners and they buy on a stock run and don’t know any better. Easy to take that money
There's opportunity there for sure.
I thought to be a real day trader. I need to short stocks. Thanks for clearing that up. I’ll only focus on long from now on. Great video
It works for some and there's certainly opportunity on both sides. It comes down to personal preference though.
Hey Ross,
I'm wanting to sign up soon. I was curious why you prefer to use TC2000 charts over the built-in charts with lightspeed?
Thanks and keep up these killer trainings.
Chad Nelson He uses esignal charts
I use eSignal for my charting, I like them because they offer second charting and are easy to use/adjust.
Started trading in 01? Dude you look amazing!!! I thought you were about 26-27 man, you look great dude! Hope the headache gets better. Can't be thankful enough for these uploads.
Appreciate it! Glad you enjoy!
Excellent information. Have a great weekend and stay safe!
Thanks, you too!
Thanks for the basic talk for newer traders
You're welcome Tim!
Truly the heart of a Teacher - Thank you Ross.
You're welcome!
Short selling is not as difficult as people seem to think. SSR does not hold me back whatsoever from a good short entry. Shares are always easy to locate for me, even penny stocks.
Glad to hear it JS, to each their own!
As well as all the rules and restrictions on short selling, there is a fundamental principle as well. I learnt that while playing Monopoly game. An entrepreneur will always think of growing his/her wealth forward, if you bankrupt all other business owners for the purpose of you having a quick win, then your wealth stops at that point. On the other hand, even if your opponent is struggling but if you could let them keep on going rather than bankruptcy, when their luck changes, your wealth grows too. So when a stock struggle, why destroy it, wait for it luck to change, then the profit will be bigger too.
True, thanks for sharing
I’ve been in the simulator Tuesday-Friday last week and I was really only profitable when I was shorting. For me I think it’s easier to identify a stock that has reached its high and will then start its down trend. I didn’t my best to follow the uptik rule so only shorting while it was moving up. But I didn’t know you had to have a margin account for shorting. It might change my strategy when I go live
👍
Your right, and thank you 💪🏽
You're welcome!
Great video thank you for sharing
Thanks for watching!
Ross - you don't have to pay the "stock reservation" fee (locate fee) for ETB stocks (for newbies: Easy To Borrow; opposite of HTB or NTB: Hard to Barrow or None To Barrow). At least Ameritrade and Etrade don't charge this, you just pay Margin interest. Also, with Ameritrade (not sure about Etrade), if you call them for a locate on a HTB stock, and they actually find it, you still don't pay anything extra. Of course, the common brokers like TD typically won't find shares for the kinds of stocks you trade (one's that are a wet dream for short swing traders since they almost always go down shortly after having insane +100% pops).
Good to know Greg, thanks for sharing!
@@DaytradeWarrior NP, Ross! Thanks for another awesome video!
Thanks for the video! Very informative
It's my pleasure!!
That’s was the best challenge I witnessed ,$500 to$1M in a year . Ross was killing it
It was pretty sweet!
Hi Ross! I'm a new subscriber and learning everything I can about day trading from your channel. I like the way you explain yourself and your ideas. Could you hip me to the essential software, programs you use/ I should learn? I like your workflow a lot. Thanks Ross!
eSignal for charting, Trade Ideas to run our scanner settings, and Lightspeed is the broker used to execute the trades.
eSignal review - www.warriortrading.com/esignal-review
Trade Ideas review - www.warriortrading.com/trade-ideas-review/
Lightspeed review - www.warriortrading.com/lightspeed-trading-review/
Check out some of our other favorites here, too! support.warriortrading.com/en/support/solutions/articles/19000080962
Great video again, Ross, very informative. Do you know if you an short stocks with CMEG? I heard it is difficult too with them.
Yes you can short at CMEG
Great thoughts! I use multiple time frames and only trade the long side! 🕺🏾💰
Thanks for the thoughts!
Thanks for the video 🐐!
You bet
We have a lot of similar trading habits. I completely understand once you are geared for watching the upward direction it is difficult to switch over and ride the downside as well. I either focus on shorting for a day or watching for upward trends but I tend to not do both in the same day. Unless there is something so obvious like a sharp downward spike, but even then I am hesitant. I mean, shorting has near unlimited loss potential. I understand a stock won't go from 100 to 100000 in a single candle but buying my loss is 100, shorting my loss has no limit and that is terrifying in its own right
Great minds think alike!
Thank you for your POV on shorting! I appreciate Ross
Thanks for watching!
I'm good at buying highs and selling lows.
🤓👍
I’m good at getting high and then comin down low.
Haha.
😂💸
Sounds like you should start short selling .. if that’s not what you want to do. Work harder on your entries and exits
I like the long term mindset too. Most of mine I plan on holding for a long time. Others I bought cheap during the crash like Cedar fair and Tesla will hold those until feel it's the right time to sell.
🤓👍
You are just amazing..I just love your personality, your look and your over all calmness. Your wife is a lucky woman!
You are the coolest trading instructor on UA-cam, I luv your videos 👍😊
Appreciate that Basem, thanks for the kind words!
Short selling turned me into a profitable trader. I do it with TDA and all of the large cap stocks are usually easy to borrow. You just have to be patient when a stock is on SSR. It's not too hard to get filled especially in the first 30 minutes.
Nice Randy, glad to hear it! It's certainly something that works for some!
Very true! Shorting is a big problem and you can lose a lot more than you risk. Long is definitely the way to go!!
Absolutely!!
Very true. Even as a scalper (also Forex), if i focus on both directions, it's just madness.. Sure i leave profit on the table by missing the shorts but atleast i have more peace of mind and theres less chance of losing focusing on long only if i stick to my strategy. Really good video sir
Thanks for the thoughts!
Ross my man, the best trader around, I learn something new every day.
I never shorted, do not want to deal with the complication and emotions along with short squeeze. Short is too risky.
👍🤓
I was interested in short selling. The commissions made me weary at first, then I came across the "we don't have any", at TD. Your video makes a lot of sense. It just seems more difficult than long trading for me at this point.
Thanks for watching!
Thanks for the information
Been wondering the ins and outs
I dont like to borrow things anyway
You're welcome Marvin!
I appreciate you share your knowledge with us. Thanks for all that you give to us
thank you!
Love it. Question...how do I get a hold of live candlestick charts?
I use esignal for my charting, you can learn more here: www.warriortrading.com/esignal-review/
Ross i was using the simulator and I bought CEI yesterday at I think it was 2.05 then hit my profit target at 2.15. The problem is I accidentally hit the profit target button twice. Suddenly I was short 4000 shares when the stock hit 2.15. Fortunately the stock halted and I had time to figure out what happened and fortunately after it halted it came back down and I closed my position at 2.04. My question is how might that scenario have played out differently in live trading?
James, most likely there would not have been shares available to short so that order would not have been filled short. Hard to say for sure though, depends on the broker and short availability.
Warrior Trading thanks Ross. Knew that was the case but wanted to make sure.
Great tennis analogy..... 👌, I prefer to focus on the long strategy also .. thank you for the video..
Glad you liked it!
I'm a Canadian warrior pro student, looking for broker to start with that is close as possible to the trading simulator plat fourm. Which Brokers would you recommend looking into? Any ideas or suggestions will help. Thank you............
Many members use TradeZero for a broker, www.warriortrading.com/trade-zero-broker-review-how-it-matches-up/
Ross, you're 100 percent correct. The stocks I want to shorts are rarely available in Ameritrade.
🤓👍
What's your take on trading sqqq instead of shorting?
So that's why bulls are bulls and bears are bearish. Good info. With futures, though, I think you can swing both ways without restrictions. TOS even has a Reverse button to switch a position if it's going against you.
thanks for sharing your view on this. I love shorting stock that goes too high on the pre-market. but I don't short them in pre-market. I short after market opens. what's your thought on that.?
It looks like you are profitable shorting stocks since you love it. You got your answer already keep doing it.
7:05 - Challenge accepted!
LOL
АХАХААХ
Trying to get out of being a barely profitable trader. I feel ya
You got it ;)
Thanks for the video Ross
You bet Paul!
What do you do then in a market that we have lately where it's constantly going down? Thanks for the video!
There are still opportunities on the long side, especially in low float land.
Shorting is the mechanism that says 'we don't think the stock is worth that much based on x.' Without it, why would a stock ever go down in price? Eventually, the price should return to a level where more folks think it's a better return on investment to go long, than to short. That's my understanding of how and why it is needed.
Without shorting prices will still go down but not at the same pace
I don't really like to short the market, like you said, its hard to find share to short especially stock under $10.
Some brokers are better than others for shorts.
Do you ever buy put options? I trade stocks to the downside all the time, but never by shorting the stock itself, and for all the reasons you mentioned. I simply buy a put option, then sell it once I think the stock has completed the move down.
I don't I started out trading stocks so that is what I focus on.
Just got my set up and about to start your program for beginners!
Awesome, exciting stuff! Let's do this.
Makes sense. I also don't short stocks and is something that I have stuck with.
To each their own!
Ross I'm thinking about going with e-signal for the 1 minute charts but they are pretty pricey for a beginner. Have you any suggestions on an alternative for charts and level 2's?
Hey Winston for charting have you tried TradingView? It is a cheaper charting platform compared to eSignal while still providing many of the features that traders demand in a quality platform: www.warriortrading.com/tradingview-review-2017/
Great info
You're welcome Stephane!
You taught me almost everything I know Ross...but I have made more money shorting the market than I have going long! It's all about what the individual sees...not everybody picks up on patterns the same
Same here! But by using put options rather than actually shorting shares.
Christoph merandez what broker
That's right, all about finding what works for you! Keep at it.
I tried to long and short things for 3 years, I am strictly long now for sure. Be good at one thing and ride that wave
👍
I'm finding my best winners are shorts. I can predict continual drops much better... I do quite well reserving stocks based on premarket gains early on, then waiting for a certain pattern around 12-2pm and making 50c per share easy.
All about finding what works for you Richard!
I find it’s easy to get into a position quickly but very difficult to get out quickly that’s what makes shorts easier the price falls quick but recovers slower
👍🤓
Hi Ross what’s your thoughts on trading apps like trading 212?
That is not a broker I have used so I don't have an opinion. The best way for you to learn more about my favorite brokers would be to join us in the next live Warrior Trading webinar. The webinar is free to join, and you will receive a copy of my best selling ebook "How To Day Trade" just for sticking around until the Q&A! You can learn more and register here, if you're interested: www.warriortrading.com/free-day-trading-class/
I have a long bias as well, so for downturns in the market I find inverse ETFs like SQQQ to trade long, as well as VIX related instruments like VIXY, UXVY, TVIX during times of market volatility.
Yep totally, that works too! I traded those during the crash and did well, about $44k in the first month