These terms are more efficient than terms like “buy” and “sell” because they tell your position–your mindset on a particular stock or on the industry.

Long:
-Positive on the market
-You can also be “long” on a particular stock: If you are long Nike, you’re expecting it to go up

Short:
-Negative on the market
-You can also be “short” on a particular stock: If you are short Nike, you’re expecting it to go down
-Selling with the intention to buy the shares back at a lower price

Benefits of using “Long”/”Short” vs. “Buy”/”Sell”:
-If you have 1,000 shares of Nike and you tell someone you sold 500 shares, they could assume you think Nike is going to go down even though you are still positive 500 shares.
-If you think a certain stock will go down and you decide to sell all 1,000 shares and later purchase 300 shares, and you tell someone that you bought the 300 shares, it is not clear that you are still negative 700 shares. They may not understand that you think Nike will go down.
-“Long” and “short” remove the ambiguity associated with the terms “buy” and “sell.”

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26 COMMENTS

  1. Thank you so much, I really had no idea that long and short trading is not literal, I thought that long means you wait for a long time and short means you wait for a short time, but now I know, thank you again, good job on your videos.

  2. Sasha Evdakov I am 34, kind of a smart guy, when it comes to Etymology, History and Politics, but I never got into wanting to learn the Stock Market, until now. I just hated seeing all of the numbers and letters. I didn't know what it meant and didn't really wanna take time to learn. But watching these first 3 videos is so interesting. I now know a lot more, than before. I feel my brain growing and it seems fun. I just want to Thank You. I think this is going to be my new hobby. I am going to study all day and night, for days. Screw politics, we might get nuked, in 6 days. At least I'll die, knowing stocks weren't rigged; plus I'll learn something new. God Bless!!

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