What is a Short Squeeze and How Can You Profit From It?

★ SUMMARY ★
You may have heard of the term “short squeeze” in the past – but didn’t know what it meant. I’m here to tell you what it is and how you can capitalize and profit from a short squeeze.

What is a short squeeze?

There are two players in the market. There are the “longs” and the “shorts” which are equivalent to buyers and sellers.

Buyers are looking for the stock to head higher while Sellers are looking for the stock to head lower.

Sellers typical are borrowing shares from their brokers – then will look for the stock to head lower – they’ll purchase it back at a lower price and pocket the difference. These are called “short sellers.”

Posted at: http://tradersfly.com/2015/04/what-is-a-short-squeeze-and-how-can-you-profit-from-it

★ SHARE THIS VIDEO ★

★ SUBSCRIBE TO MY YOUTUBE: ★
http://bit.ly/addtradersfly

★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.

Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.

Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!

STOCK TRADING COURSES:
— http://tradersfly.com/courses/

STOCK TRADING BOOKS:
— http://tradersfly.com/books/

WEBSITES:
— http://rise2learn.com
— http://tradersfly.com
— http://backstageincome.com
— http://sashaevdakov.com

SOCIAL MEDIA:
— http://twitter.com/tradersfly
— http://facebook.com/tradersfly

MY YOUTUBE CHANNELS:
— TradersFly: http://bit.ly/tradersfly
— BackstageIncome: http://bit.ly/backstageincome

source

25 COMMENTS

  1. for Canada this is BS because a short position never has to be covered and you can live your entire life and die selling stocks you never owned. AT LEAST THAT IS WHAT I UNDERSTAND but I could be wrong.

  2. In this video are we referring to sellers/shorts as options trades only? Like, if they borrowed shares from their brokers to buy back at a lower price they'd only lose money if they did it via a short options trade?

LEAVE A REPLY

Please enter your comment!
Please enter your name here