Trading 101: What is a "Short Squeeze"?

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  • Опубліковано 10 чер 2024
  • The stock market is a crazy place where money can be made no matter what happens. How so? Due to a trading and investing strategy known as "going short", you can literally make money from a stock price going down in value. While the stock market is very expansive in all the opportunities it can give you, it can also be a very risky place where large amounts of money can be lost. In the world of "shorting stocks" and "going short", you must be aware of and avoid what is known as a "short squeeze". Perhaps you've heard this term, but if you are a beginner in the stock market and just getting started, it would be normal for you to have no idea what it means. Let me show you how a short squeeze works and what causes it (and continues to cause it). Learning how to trade and invest means understanding the risks involved and this is definitely a risk you need to be aware of.
    What is "Shorting" / "Going Short"? - learn the basics HERE (claytrader.com/videos/shortin...)
    Watch Me Short a Stock (and Lose) - See it HERE (claytrader.com/videos/how-to-...)
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КОМЕНТАРІ • 1,2 тис.

  • @smash4139
    @smash4139 3 роки тому +268

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

    • @claytrader
      @claytrader  3 роки тому +11

      Glad it helped!

    • @chivasdeguadalajara
      @chivasdeguadalajara 3 роки тому +2

      @@claytrader Great job buddy 👍subscribed

    • @claytrader
      @claytrader  3 роки тому +3

      @@chivasdeguadalajara welcome aboard!

    • @5qwert7
      @5qwert7 2 роки тому +3

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

    • @claytrader
      @claytrader  2 роки тому +2

      @@5qwert7 thanks!

  • @Dreadlock1227
    @Dreadlock1227 3 роки тому +275

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

    • @claytrader
      @claytrader  3 роки тому +22

      Many people lol

    • @johnhartmann8592
      @johnhartmann8592 3 роки тому +3

      🤣🤣🤣 right here

    • @claytrader
      @claytrader  3 роки тому +6

      @@johnhartmann8592 cheers

    • @red149
      @red149 3 роки тому

      many many many lol

    • @red149
      @red149 3 роки тому +2

      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
    @joespinosa1049 3 роки тому +203

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

  • @mu9284
    @mu9284 4 роки тому +178

    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...

  • @colemccoy231
    @colemccoy231 3 роки тому +323

    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
      @cargojoe 3 роки тому +4

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

    • @claytrader
      @claytrader  3 роки тому +3

      Cheers

    • @colemccoy231
      @colemccoy231 3 роки тому +3

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

    • @yusufniamati278
      @yusufniamati278 3 роки тому +1

      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
      @invincibearofficial 3 роки тому +3

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

  • @DaddyFutbol
    @DaddyFutbol 3 роки тому +20

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

  • @ktmzombieryder4166
    @ktmzombieryder4166 4 роки тому +44

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

    • @claytrader
      @claytrader  4 роки тому +4

      wild indeed

    • @dave-yj9mc
      @dave-yj9mc 4 роки тому +3

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

    • @BurnedSpace
      @BurnedSpace 3 роки тому

      hope u bought 5k worth if calls

  • @mclark202
    @mclark202 3 роки тому +54

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

  • @hoodieyearround8641
    @hoodieyearround8641 3 роки тому +10

    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

  • @pabloaguila6344
    @pabloaguila6344 3 роки тому +6

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

  • @Swaggaccino
    @Swaggaccino 3 роки тому +111

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

    • @yaremadzu9566
      @yaremadzu9566 3 роки тому +5

      The whole GME thing just makes me smile lmfao

    • @claytrader
      @claytrader  3 роки тому +4

      cheers

    • @trentc6069
      @trentc6069 3 роки тому +5

      I've never seen cramer scream so much 😂😂

    • @claytrader
      @claytrader  3 роки тому +2

      @@trentc6069 lol

    • @prickayeey8420
      @prickayeey8420 3 роки тому +3

      Gme execs eating stake and lobsters all week long

  • @tinly1
    @tinly1 3 роки тому +9

    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

  • @nailcarter1523
    @nailcarter1523 4 роки тому +35

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

    • @claytrader
      @claytrader  4 роки тому +2

      Thanks for watching

    • @dragosvoda1078
      @dragosvoda1078 4 роки тому

      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
      @nailcarter1523 4 роки тому

      Dragos Voda there fixed !!!!!

  • @ajbrown3608
    @ajbrown3608 3 роки тому +15

    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.

  • @healthychocolatenews
    @healthychocolatenews 2 роки тому +2

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

  • @e.davidjohnson4805
    @e.davidjohnson4805 2 роки тому +3

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

  • @timothymark8254
    @timothymark8254 4 роки тому +5

    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.

  • @shawngressel5339
    @shawngressel5339 4 роки тому +3

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

    • @claytrader
      @claytrader  4 роки тому +1

      Thank you for watching, and welcome to the channel!

  • @gerryramosftw
    @gerryramosftw 3 роки тому

    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!

  • @alant6480
    @alant6480 3 роки тому +1

    Clay, thanks for making it so clear!

  • @dave-yj9mc
    @dave-yj9mc 4 роки тому +6

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

  • @jonboybilly
    @jonboybilly 3 роки тому +29

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

    • @claytrader
      @claytrader  3 роки тому +4

      Been a monster!

    • @AlejandroT1
      @AlejandroT1 3 роки тому +1

      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
      @marie8872 3 роки тому +3

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

    • @claytrader
      @claytrader  3 роки тому +1

      @@marie8872 bummer!

    • @claytrader
      @claytrader  3 роки тому +1

      @@AlejandroT1 good ol' hindsight

  • @nicholassheppard9311
    @nicholassheppard9311 2 роки тому

    Thanks brother, appreciate your time.

  • @brianrachmat3492
    @brianrachmat3492 2 роки тому +1

    I finally understand "short squeeze" Thank you.

  • @TheBlablawww
    @TheBlablawww 3 роки тому +3

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

  • @chocolateyartstudio385
    @chocolateyartstudio385 4 роки тому +7

    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
      @claytrader  4 роки тому

      Thanks for the feedback and thanks for watching.

  • @hapshabyahyisrael9810
    @hapshabyahyisrael9810 2 роки тому

    I am loving this. Very simple.

  • @cle0ph
    @cle0ph 2 роки тому

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

  • @EthePrequel
    @EthePrequel 3 роки тому +13

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

  • @shanmank
    @shanmank 3 роки тому +3

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

  • @ellieisaenko5858
    @ellieisaenko5858 3 роки тому +1

    Thanks Clay! Great video. You really have a gift explaining complex things in a way that is super clear and easy to understand.Much appreciated!

  • @Kel336
    @Kel336 7 місяців тому

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

  • @karlbooklover
    @karlbooklover 3 роки тому +16

    came here because r/wallstreetbets

  • @dreambigstudios8046
    @dreambigstudios8046 3 роки тому +3

    Just Joined the Rocket Ship!!!!

  • @Internet_user777
    @Internet_user777 3 роки тому

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

  • @TravisBandManAndy
    @TravisBandManAndy 2 роки тому

    Sound explanation, Clay. Thanks brotha.

  • @oscarozden8759
    @oscarozden8759 3 роки тому

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

  • @finalframeproductions1143
    @finalframeproductions1143 3 роки тому +2

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

  • @nancyta3948
    @nancyta3948 2 роки тому

    Easy understand, well done, helpful …Thanks

  • @destineon9438
    @destineon9438 3 роки тому +1

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

  • @abtahichowdhury1385
    @abtahichowdhury1385 3 роки тому

    THANKS, SIR. HELPED A LOT

  • @paulmark992
    @paulmark992 3 роки тому

    Thank you for the explanation.

  • @iAmTQH
    @iAmTQH 2 роки тому

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

  • @ericxiong7781
    @ericxiong7781 4 роки тому +1

    Great explanation! Thanks Clay!

  • @abdeoupox
    @abdeoupox 3 роки тому

    Loved the course. Very well explained. Thank you!

  • @xxxag1768
    @xxxag1768 3 роки тому +1

    Extremely helpful!!!

  • @jarrettw1981
    @jarrettw1981 Рік тому

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

  • @sharikacrenshaw4236
    @sharikacrenshaw4236 Рік тому +1

    Thanks for the perfect breakdown🥰

  • @isaacsogunro5179
    @isaacsogunro5179 2 роки тому

    Great explanation. Thanks!

  • @azhar145
    @azhar145 5 днів тому

    really nice description. Thank You.

  • @moeodeh3741
    @moeodeh3741 3 роки тому

    MAN THANK YOU SO MUCH YOU ARE ONE OF THE BEST ON UA-cam
    THANK YOU AGAIN

  • @wojciechpudlo1974
    @wojciechpudlo1974 4 роки тому +1

    I like how you put it man. Really had fun watching this video. Couldn't agree more.

  • @tonychicaia1804
    @tonychicaia1804 3 роки тому

    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.

  • @JRyderEngraving
    @JRyderEngraving 3 роки тому

    That really helped me out understanding, thank you!

  • @Rosejsa
    @Rosejsa 2 роки тому

    thank you so much for making this video, great explanation !!!

  • @ProblemForSolution
    @ProblemForSolution 3 роки тому

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

  • @michaelmurray1968
    @michaelmurray1968 3 роки тому

    What a great video! Thanks

  • @h.b1258
    @h.b1258 3 роки тому

    Great and simple explination! Thank you

  • @primeminister7885
    @primeminister7885 2 роки тому

    I understand now, thanks Clay 🤩🎯

  • @kengthor4801
    @kengthor4801 3 роки тому

    Love the video! Really helpful drawing it out

  • @simple-human-being
    @simple-human-being 2 роки тому

    Great video, to the point, appreciate it

  • @Jessica99152
    @Jessica99152 2 роки тому

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

  • @the_game188
    @the_game188 4 роки тому

    very clear and helpful , thank you

  • @FernandoQuevedo
    @FernandoQuevedo 3 роки тому

    Thank you for an EXCELLENT and clear explanation. You earned my sub.

  • @dots_1
    @dots_1 3 роки тому +2

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

  • @chocolatecoveredgummybears
    @chocolatecoveredgummybears Рік тому

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

  • @stephlight123
    @stephlight123 2 роки тому

    Wow thank you for this explanation. New subscriber!

  • @angelabolado8803
    @angelabolado8803 3 роки тому +1

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

    • @claytrader
      @claytrader  3 роки тому

      Thanks for watching!

    • @claytrader
      @claytrader  3 роки тому

      @Jon Jukoba thanks for the thoughts

  • @rightquestions8870
    @rightquestions8870 3 роки тому

    Thank you for this video❤️

  • @erarandom1116
    @erarandom1116 3 роки тому +2

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

  • @sureshkm
    @sureshkm 3 роки тому

    Very well explained! Thank you!

  • @Shadow-rt9eq
    @Shadow-rt9eq 2 роки тому

    I didn't expect much but very good explanation

  • @tobyreckards9029
    @tobyreckards9029 3 роки тому

    This was great think you . Finally some one I understand

  • @sami6593
    @sami6593 3 роки тому

    thanks clay that was an awesome example

  • @Vladm557
    @Vladm557 3 роки тому

    Thanks for explaining in a great way

  • @maryallisonmusic615
    @maryallisonmusic615 3 роки тому

    This was so helpful! Thank you

  • @kreativmindz1
    @kreativmindz1 4 роки тому

    great explanation Clay. Thanks

  • @finn7530
    @finn7530 Рік тому

    thank you so much

  • @cal7283
    @cal7283 Рік тому

    Very good explanation buddy. Thank you.

  • @parkerterlaak2154
    @parkerterlaak2154 4 роки тому

    Awesome Man. One video convinced me to Subscribe. Keep up the great work.

  • @matthewray5954
    @matthewray5954 3 роки тому

    Great video. Thanks for explaining this to us

  • @lonnirenee7645
    @lonnirenee7645 4 роки тому

    Now I understand short squeeze. I like the way how you explain it.

  • @mehrdad1065
    @mehrdad1065 3 роки тому

    thank you . it was helpful.

  • @AkuaB_RN
    @AkuaB_RN 2 роки тому +1

    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
      @claytrader  2 роки тому

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

  • @quanto8679
    @quanto8679 2 роки тому

    Finally understood !

  • @raymac6262
    @raymac6262 2 роки тому

    Great explanation Clay. Well done

  • @jerranamo
    @jerranamo 3 роки тому

    Awesome, video! Super simple and easy to understand.

  • @robertwilliams6605
    @robertwilliams6605 3 роки тому

    Thank you

  • @brandonl2oss
    @brandonl2oss 3 роки тому

    Thank you so much!!!!!

  • @justintavella7043
    @justintavella7043 3 роки тому

    So greatly explained bud

  • @johnandino3170
    @johnandino3170 2 роки тому

    thank you for teach me this method you are #1

  • @hamzains
    @hamzains 2 роки тому

    Very well explained.

  • @itsLightShowFFinc
    @itsLightShowFFinc 3 роки тому

    Just hit that subscribe button. Thanks man, you are amazing

  • @golfpro2023
    @golfpro2023 3 роки тому

    thank you

  • @DallasHVac
    @DallasHVac 3 роки тому

    Thx for explanation, I get it now

  • @tysoncleave872
    @tysoncleave872 4 роки тому

    Awesome video man, well explained!

  • @okay7154
    @okay7154 3 роки тому

    Learned a lot today

  • @aleceiffel80
    @aleceiffel80 3 роки тому

    Brilliant explanation. Subscribed!

  • @jamiebury1807
    @jamiebury1807 2 роки тому

    Best explanation yet

  • @joestofey1527
    @joestofey1527 3 роки тому

    Helpful..ty..