Trading 101: What is a "Short Squeeze"?

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  • Опубліковано 30 жов 2024

КОМЕНТАРІ • 1,2 тис.

  • @smash4139
    @smash4139 3 роки тому +277

    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 3 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  3 роки тому +2

      @@5qwert7 thanks!

  • @joespinosa1049
    @joespinosa1049 3 роки тому +207

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

  • @Dreadlock1227
    @Dreadlock1227 3 роки тому +280

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

    • @claytrader
      @claytrader  3 роки тому +24

      Many people lol

    • @johnhartmann8592
      @johnhartmann8592 3 роки тому +4

      🤣🤣🤣 right here

    • @claytrader
      @claytrader  3 роки тому +7

      @@johnhartmann8592 cheers

    • @red149
      @red149 3 роки тому +1

      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.

  • @mu9284
    @mu9284 4 роки тому +180

    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.

  • @healthychocolatenews
    @healthychocolatenews 3 роки тому +2

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

  • @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

  • @brianrachmat3492
    @brianrachmat3492 2 роки тому +1

    I finally understand "short squeeze" Thank you.

  • @mclark202
    @mclark202 3 роки тому +54

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

  • @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 4 роки тому

      hope u bought 5k worth if calls

  • @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.

  • @DaddyFutbol
    @DaddyFutbol 3 роки тому +21

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

  • @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.

  • @pabloaguila6344
    @pabloaguila6344 4 роки тому +6

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

  • @tinly1
    @tinly1 3 роки тому +10

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

    • @claytrader
      @claytrader  3 роки тому

      Yup. That's what it is...

    • @stevejones2782
      @stevejones2782 3 роки тому

      🤣🤣🤣🤣🤣

    • @antonionotbanderas9775
      @antonionotbanderas9775 20 днів тому

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

  • @trustmebro8500
    @trustmebro8500 3 роки тому

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

  • @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

  • @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.

  • @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 !!!!!

  • @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

  • @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.

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

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

  • @TheBlablawww
    @TheBlablawww 3 роки тому +3

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

  • @perrybocson1952
    @perrybocson1952 3 місяці тому

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

  • @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

  • @cgiron3867
    @cgiron3867 2 роки тому

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

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

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

  • @Shadow-rt9eq
    @Shadow-rt9eq 3 роки тому

    I didn't expect much but very good explanation

  • @shanmank
    @shanmank 3 роки тому +3

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

  • @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!

  • @karlbooklover
    @karlbooklover 3 роки тому +16

    came here because r/wallstreetbets

  • @Jessica99152
    @Jessica99152 2 роки тому

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

  • @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

  • @dots_1
    @dots_1 3 роки тому +2

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

  • @dreambigstudios8046
    @dreambigstudios8046 3 роки тому +3

    Just Joined the Rocket Ship!!!!

  • @hollisr4552
    @hollisr4552 4 місяці тому

    Great teacher, he makes its easy to understand.

  • @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!

  • @pokihoki8699
    @pokihoki8699 2 роки тому

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

  • @sharikacrenshaw4236
    @sharikacrenshaw4236 2 роки тому +1

    Thanks for the perfect breakdown🥰

  • @Flo-qr7zv
    @Flo-qr7zv 3 роки тому +2

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

  • @hapshabyahyisrael9810
    @hapshabyahyisrael9810 2 роки тому

    I am loving this. Very simple.

  • @Digitalgems9000
    @Digitalgems9000 Рік тому

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

  • @benzoh28
    @benzoh28 3 роки тому

    🗣Protect this man at all costs !!!! 😤

  • @nicholassheppard9311
    @nicholassheppard9311 2 роки тому

    Thanks brother, appreciate your time.

  • @XxbankerboomxX
    @XxbankerboomxX 3 роки тому

    Thanks bro because of you i motivated me to buy GME stocks and its up 700%

  • @jamiebury1807
    @jamiebury1807 3 роки тому

    Best explanation yet

  • @cle0ph
    @cle0ph 2 роки тому

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

  • @iAmTQH
    @iAmTQH 2 роки тому

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

  • @timepiecetrading5684
    @timepiecetrading5684 3 роки тому

    The smartest video you ever made

  • @moeodeh3741
    @moeodeh3741 3 роки тому

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

  • @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

  • @christiancandelaria1411
    @christiancandelaria1411 3 роки тому

    Blackberry stock buyer here. Bought at $8 3 months ago believing it would spike up again due to meme stock status, or in the long run due to IV car tech. Stocks are now at over $16. Two months into the market and went up from $800 to over $1600 on Blackberry.
    The shorts have to be running like chickens without heads considering this is the second meme stock rally.
    One thing is for certain . . . You DO NOT short meme stocks lol

    • @claytrader
      @claytrader  3 роки тому

      Interesting times for sure.

  • @ljuan5000
    @ljuan5000 2 роки тому

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

  • @jarrettw1981
    @jarrettw1981 Рік тому

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

  • @MissionMuscleUp
    @MissionMuscleUp 2 роки тому

    Sound explanation, Clay. Thanks brotha.

  • @Kel336
    @Kel336 Рік тому

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

  • @azhar145
    @azhar145 4 місяці тому

    really nice description. Thank You.

  • @xxxag1768
    @xxxag1768 3 роки тому +1

    Extremely helpful!!!

  • @erarandom1116
    @erarandom1116 3 роки тому +2

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

  • @nancyta3948
    @nancyta3948 3 роки тому

    Easy understand, well done, helpful …Thanks

  • @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.

  • @kishanthakkar1019
    @kishanthakkar1019 3 роки тому

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

  • @geauxracerx
    @geauxracerx 2 роки тому

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

  • @westernartifact4163
    @westernartifact4163 3 роки тому

    The key point is the "borrowing" vs buying of shares that hedge funds do. This was my sticking point.

  • @TrollGamerStudios
    @TrollGamerStudios 3 роки тому

    Accidentally just made 45% return on a BBBY short squeeze and was trying to figure out how I did it... Thanks!

  • @primeminister7885
    @primeminister7885 2 роки тому

    I understand now, thanks Clay 🤩🎯

  • @amazingbuilders3458
    @amazingbuilders3458 2 роки тому

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

  • @destineon9438
    @destineon9438 3 роки тому +1

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

  • @caven930
    @caven930 3 роки тому

    Didn't think I was gonna understand but I did at the end, this channel is the awesome

  • @tobyreckards9029
    @tobyreckards9029 3 роки тому

    This was great think you . Finally some one I understand

  • @wayne521third
    @wayne521third 3 роки тому

    Jimmy Billy and Robert making those tendies 😤😤😤💯🚀

  • @johnandino3170
    @johnandino3170 3 роки тому

    thank you for teach me this method you are #1

  • @raymac6262
    @raymac6262 2 роки тому

    Great explanation Clay. Well done

  • @rahkim0431
    @rahkim0431 3 роки тому

    This was really helpful to me after buying AMC. Thank you!

  • @user-dp6qt8pk7m
    @user-dp6qt8pk7m 4 роки тому +1

    im so surprised this video doesn't have thousands of view. This is incredible!

  • @paulmark992
    @paulmark992 3 роки тому

    Thank you for the explanation.

  • @Robsattheskatepark
    @Robsattheskatepark 3 роки тому +1

    Great video and great stick drawings 😉

  • @cal7283
    @cal7283 Рік тому

    Very good explanation buddy. Thank you.

  • @isaacsogunro5179
    @isaacsogunro5179 2 роки тому

    Great explanation. Thanks!

  • @stephlight123
    @stephlight123 2 роки тому

    Wow thank you for this explanation. New subscriber!

  • @tombartholomew75
    @tombartholomew75 4 роки тому

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

    • @claytrader
      @claytrader  4 роки тому

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

  • @Internet_user777
    @Internet_user777 3 роки тому

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

  • @alant6480
    @alant6480 3 роки тому +1

    Clay, thanks for making it so clear!

  • @abtahichowdhury1385
    @abtahichowdhury1385 3 роки тому

    THANKS, SIR. HELPED A LOT

  • @Tokomak_5
    @Tokomak_5 3 роки тому

    MOASS is coming baby! Crazy times!

  • @AkuaB_RN
    @AkuaB_RN 3 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  3 роки тому

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

  • @sweetsour3935
    @sweetsour3935 3 роки тому

    Great video very easy to understand. My question is does a short have to sell. Can they hold on to a stock for years. 2nd question is when does a short have to sell

    • @claytrader
      @claytrader  3 роки тому

      A short "buys" to exit the trade.

  • @justintavella7043
    @justintavella7043 3 роки тому

    So greatly explained bud

  • @MrJZ99
    @MrJZ99 3 роки тому

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

    • @claytrader
      @claytrader  3 роки тому

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

  • @ian8762
    @ian8762 2 роки тому

    Well done, sir.

  • @vamsishankar8476
    @vamsishankar8476 3 роки тому +1

    Really liked your explanation, why don't you make a detailed in depth video on GameStop.. so that you can get more views and people can buy your course. This is the right time to make a video..

    • @claytrader
      @claytrader  3 роки тому

      Thanks for watching and for the thoughts!

  • @superkalel8818
    @superkalel8818 3 роки тому

    Thank you for the simple explanation brother.....I wonder what has been the top shorted companies of all time that has gone up like GME

  • @Amtillthepm
    @Amtillthepm 3 роки тому +1

    Are there any negatives to a short squeeze? People are saying “don’t buy GameStop, it’s just a short squeeze.” I’m having a hard time understanding that, can you explain it please? Thanks

    • @claytrader
      @claytrader  3 роки тому

      Price will eventually crash

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

    Great video, to the point, appreciate it

  • @michaelmurray1968
    @michaelmurray1968 3 роки тому

    What a great video! Thanks

  • @joeking5215
    @joeking5215 2 роки тому +1

    I wish they teach this at school

  • @irreplacableable
    @irreplacableable 3 роки тому

    Please keep making videos like these
    Subbed

  • @kelmel1842
    @kelmel1842 3 роки тому

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

  • @oscarozden8759
    @oscarozden8759 3 роки тому

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

  • @quanto8679
    @quanto8679 3 роки тому

    Finally understood !