Thank you so much Ross, you know this is exactly what I have been looking for since you posted about GameStop. You the best teacher I ever had on stocks, you didn't let me down. I am following you after this video forever.
Short selling reminds me of the fractional reserve system we have in place today on currency. The bank lends out money that it doesn't have, that belongs to someone else, and profits exorbitantly off of other people's money. If we are to say that shorting should be illegal, we should also look at our banking system and call it illegal as well.
The money doesn't really belong to someone else. It just doesn't exist until the bank creates it from thin air. And the interest charged on this thin air money will never exist therefore enslaving people through the interest on the debt. Everyone suffers except the very few who control the "printers" and some suffer much more than the rest.
Short selling allows someone to express a negative opinion about the value of a stock. It helps keep a balance against the long side. But with synthetic derivatives shorting is disruptive to the balance.
Great summary of our very complex market situation. I'm not sure many average people understand how close we were to a complete market meltdown in 2021. One thing that is also important to note that I'm not sure you covered was that most retail trades never make it to the lit market and are routed off exchange thus having little to no effect on the daily price movement. It's an important concept for retail to understand. As you mentioned when you discussed DRS it allows us "the little guys" to reduce liquidity by removing the shares from the DTCC. It's not much but it is one of the tools we have. Anyhow, good stuff, Ross. Really enjoy your easy to digest videos.
Shorting and naked shorting sound the same, but there are a completely different beast. Naked short selling is effectively going out and sell something you not only don't own, but don't possess at all (and which, in fact, doesn't even exist). This is why blockchain needs to be part of the market. Only an existing, digitally verifiable financial instrument should be able to be shorted, liquidity be damned. If I short 1000 of a stock, the digital fingerprint of every single one of those stocks should be directly linked to the short sale.
You know, if you ever need a retirement job, why not look into teaching kids in high school about financial literacy! Give back a little of what you've learned to them. I mean, not that you're not giving back on RUclips with amazing free vids like this, but really be a part of changing the future! You're a natural teacher, and I bet you'd do well!! Would've loved a teacher like you!
Brother, I have no idea who you are, I just searched GME on YT. But you've gained a follower here. You absolutely know what you're talking about with the derivatives. I used to work for a company that exists as a result of the 2008 crash and the fact that the regulators now require a certain percentage (10% - 25%) of the investor's collateral to be QC'd by a 3rd party when loans are sold in the secondary market. What you mentioned was part of the problem. The movie The Big Short pointed out the other issues that were going on. Respect!
This is my sentiment exactly. Retailers chewed up the stock, kitty's collateral, the shareholders meeting was a big "don't worry about it" from Ryan Cohen. It's a retail stock and the retailers are being shafted. Fingers crossed I am wrong. Cohen seems like he has priorities in the right place but people change and economic uncertainty drives people to do crazy things.
You have no idea how you helped me in the past months Ross, since I got in with the warriors. I can't trade very often, but I've been watching you guys from time to time now, when I can log in on the Stream. Last 2 years was hell of a ride. I finally found you guys, after spending a lot of time researching, reading comments here and there, and seeing the type of trading you do. Can't chat with you guys yet so wanted to drop and say Hi here, until I'm a full member ! Take care Ross I'll be around and try to act as a sponge until I get ( hopefully ) closer to your level !!!
Extraordinary video production, information, presentation, resources, inserts, data. Many of us knew some of this. But not so completely and thoroughly. I'm glad you have your well earned success in this corrupt market, having created your way and methods. Those dark pool, big time shorts and HFTs and hedges guys must be concerned when they're walking alone at night
I've been subscribed to your channel for about a few years but now I'm actually starting to take action on my journey with day trading. Your videos are very informative, very nice job!
Two questions at the 31:00 mark: 1) Where does the money come from for the Investment Bank to pay the Hedge Fund the $8.5mil? 2) How is that a profitable incentive for the Investment Bank?
Thank you so much Ross, you know this is exactly what I have been looking for since you posted about GameStop. You the best teacher I ever had on stocks, you didn't let me down. I am following you after this video forever! BTW I know now that you have digged deeper about GME now(HIGHLY APPRECIATE YOU DID, BECAUSE YOU EXPLAINED VERY WELL) You would be mind blown if you actually dig even deeper on the 140% (Or even more) shorts has a chance which was never covered.
Brilliantly done. Swaps are crazy, I wasn't aware of their existence. Just for clarification, neither the hedge fund or the investment bank have to own shares of the company? This reminds me of a book I read on the Gold Rush, where people would just place wildy speculative bets on the daily.
Thank you for teaching me how to become a day trader. the last year has been life changing for me and my family. Alot of it is due to your teaching so again thank you ross.
SO I thought the main thesis for today is that many of the shorts never closed their positions because closing the position would actually cause the short squeeze. When the stock was sold short at 140% there were not enough shares to cover the shorts. If the company goes bankrupt then those shares never need to be returned so it is pure profit. But if the company remains solvent then they must hold and hold and hold because the shares don't really exist to cover the short position.
the shorts have learned they can just pass the shorts around and now it doesn't show in the short interest #'s. Like musical chairs and when the music stops there aren't enough chairs for everyone.
This looks more and more like retail traders are effectively propping up the markets. This is probably why they have made it easier to trade. In essence it is theft from the inexperienced.
If you’ve seen Oppenheimer, it is described in the movie that if the nuclear weapon were to be created and used - what could happen? One theory is there could be a negative effect on the atmosphere and cause a chain reaction, setting fire to the entire world and destroying everything, just from one nuclear weapon detonation. I feel that the GameStop situation could have a similar effect, similar to what Warren Buffet alluded to with the quote mentioned in this video (if it is a direct quote or not). It is a volatile and unpredictable stock and situation and could lead to the economic collapse of civilisation if it strays too far.
Very well educated video, greatly appreciate this. My main concern is the country and I do think it’s worth anyone involved to consider. All for the hedge funds getting it but I’m sure a lot of homeless or low income people who don’t even trade, likely get impacted. I’m all for people making money but the govt needs to make adjustments to the ridiculous naked shorting. What I think is funny is how often I hear “oh china’s market so manipulated!” And look at ours can it be much different. Greatly appreciate how you teach. Detailed, thorough, and not overly complicated and the white board proves to me how much you care about your viewers interest thank you
Word on the street is that there's more naked shorts now than in 2021 RK supposedly owns 75% of the interest and he's been dropping hints about the naked shorts. Seriously, think about it. He put in $300m in one stock. Do you actually think someone with $300m who's been accurate would waste it all because of nonsense? He's a true leader
Good Work Ross!!! Loved the breakdown of this. People really need to understand his stuff... If they want to, but I agree the whole thing seems unethical to begin with. Is what it is, thanks for the great video Ross.
the shares of GME being diluted seems to be a bad move for investors short term, but long term now the company has the funds to re-invent it self which means the price is probably going to move higher in the future. The shorts will eventually have to cover.
if the point of markets is price determination, then shorting is just as valid as going long. both are necessary to find the value. the soviets could not determine a price for anything and it created a really miserable economic and political system. when asked, one of gorbachev's advisers said that had communism triumphed all over the world, they would have let new zealand keep a free market. why? because the soviets would still need a market to tell them the price of goods and services. central planners cannot do it. poorly managed companies deserve to be shorted.
I'm a long hold. I've not been very successful with day trading. I actually have my series 7 and 66 security license. I guess that makes me ultra conservative in the market.
If you were sensible you should be more or less break even on it, and now GME has 4 billion in the bank. That's the point for a lot of retail traders, it wasn't about a short squeeze for profit it was about breaking the short sellers, that's now done, with 4 billion and a $25 strike price, don't you think big money is going to see an easy long position? GME is not a meme stock, it never was, it's a genuine stock with potential that Short sellers tried to make a laughing stock of, it's now an interesting long position which is what Roaring Kitty always thought it was.
Why would you think it shouldn’t be legal? Nothing wrong with it as long as it’s done within the rules It’s no different than any other bet you’d make on anything else
Just a note. A lot can find the 136% SI reporting. However there was a day that it was reported at 226%. Also, hearing you being scared of the swaps... I hope you read some of the information on superstonk about the swaps. If the theory is true, some history making stuff is about to happen real soon.
Thank you ross this was very useful. And I didn't trade game stop either I felt like I'm not experienced enough to ride that wave yet. I'll stay wi5h the obvious ones lol .. thanks ross
![How to Get a Developer Job - Even in This Economy [Full Course]](http://i.ytimg.com/vi/6nz8GXjxiHg/mqdefault.jpg)
Dude. You’re a natural teacher. So easy to follow. You set it up perfectly. Thanks.
Thank you so much Ross, you know this is exactly what I have been looking for since you posted about GameStop.
You the best teacher I ever had on stocks, you didn't let me down.
I am following you after this video forever.
@@alwaysgrateful1215 Maybe you will find the link for the 2 week trial, and we will be class mates!
Really! I have watched tons of trading shows and classes and he is definitely the best! 😊
You're such a good teacher. I can actually understand you.
Short selling reminds me of the fractional reserve system we have in place today on currency. The bank lends out money that it doesn't have, that belongs to someone else, and profits exorbitantly off of other people's money. If we are to say that shorting should be illegal, we should also look at our banking system and call it illegal as well.
The money doesn't really belong to someone else. It just doesn't exist until the bank creates it from thin air. And the interest charged on this thin air money will never exist therefore enslaving people through the interest on the debt. Everyone suffers except the very few who control the "printers" and some suffer much more than the rest.
When the FCC issues fines for naked short selling without any criminal action, it's not a fine - IT'S THEIR CUT.
Tony Soprano called it "the Rent"
@@PrinceCbass Yup.
You are so right never thought about it like that. They are truly making their own rules..
The broker lending your shares and not giving you 90% of the borrow fee should be the crime.
same as the bank lending money backed by your deposits
"Bend the rules a little bit" WTF. AND THIS IS JUST 1 GUY! WOW. IM F PISSED...
Welcome to the real world. This is true for every single rule on the planet.
Short selling allows someone to express a negative opinion about the value of a stock. It helps keep a balance against the long side. But with synthetic derivatives shorting is disruptive to the balance.
It is not only disruptive, it is manipulation and bullying by big dirty money of the small retail investors.
Worse if you are a market maker and a hedge fund you have control over any stock you like.
You are a good teacher. If you ever want to make a lot less money, you could do it full time.
Honestly, brokers shouldn't be able to lend stocks you own.
You can stop it
Great summary of our very complex market situation. I'm not sure many average people understand how close we were to a complete market meltdown in 2021. One thing that is also important to note that I'm not sure you covered was that most retail trades never make it to the lit market and are routed off exchange thus having little to no effect on the daily price movement. It's an important concept for retail to understand. As you mentioned when you discussed DRS it allows us "the little guys" to reduce liquidity by removing the shares from the DTCC. It's not much but it is one of the tools we have. Anyhow, good stuff, Ross. Really enjoy your easy to digest videos.
2021 is the best thing that ever happened
Free Resources Download to Keep Learning! warrior.app/naked-short-selling
oh wow thank you so much for shedding light on this issue and making it so easy for anyone to understand!!
Shorting and naked shorting sound the same, but there are a completely different beast. Naked short selling is effectively going out and sell something you not only don't own, but don't possess at all (and which, in fact, doesn't even exist). This is why blockchain needs to be part of the market. Only an existing, digitally verifiable financial instrument should be able to be shorted, liquidity be damned. If I short 1000 of a stock, the digital fingerprint of every single one of those stocks should be directly linked to the short sale.
Blockchain is shorted every day... its not immune to this
Thank you for taking the time to put this together and explain it to people without sounding esoteric
You know, if you ever need a retirement job, why not look into teaching kids in high school about financial literacy! Give back a little of what you've learned to them. I mean, not that you're not giving back on RUclips with amazing free vids like this, but really be a part of changing the future! You're a natural teacher, and I bet you'd do well!! Would've loved a teacher like you!
Brother, I have no idea who you are, I just searched GME on YT. But you've gained a follower here. You absolutely know what you're talking about with the derivatives. I used to work for a company that exists as a result of the 2008 crash and the fact that the regulators now require a certain percentage (10% - 25%) of the investor's collateral to be QC'd by a 3rd party when loans are sold in the secondary market. What you mentioned was part of the problem. The movie The Big Short pointed out the other issues that were going on. Respect!
This is an outstanding video. Cant wait to see what you post between now and eod Friday
You are a fantastic teacher and so easy to listen to and understand. Thank you for taking your time to provide this information. We appreciate you!
This is my sentiment exactly. Retailers chewed up the stock, kitty's collateral, the shareholders meeting was a big "don't worry about it" from Ryan Cohen. It's a retail stock and the retailers are being shafted. Fingers crossed I am wrong. Cohen seems like he has priorities in the right place but people change and economic uncertainty drives people to do crazy things.
You have no idea how you helped me in the past months Ross, since I got in with the warriors. I can't trade very often, but I've been watching you guys from time to time now, when I can log in on the Stream. Last 2 years was hell of a ride. I finally found you guys, after spending a lot of time researching, reading comments here and there, and seeing the type of trading you do. Can't chat with you guys yet so wanted to drop and say Hi here, until I'm a full member ! Take care Ross I'll be around and try to act as a sponge until I get ( hopefully ) closer to your level !!!
Extraordinary video production, information, presentation, resources, inserts, data. Many of us knew some of this. But not so completely and thoroughly. I'm glad you have your well earned success in this corrupt market, having created your way and methods. Those dark pool, big time shorts and HFTs and hedges guys must be concerned when they're walking alone at night
also, the shorts from 2021 went into leaps, those have been coming due this month but they have t+35 to fulfill, allegedly
I've been subscribed to your channel for about a few years but now I'm actually starting to take action on my journey with day trading. Your videos are very informative, very nice job!
Epic and must needed video!
And they have the audacity to accuse and complain abt RK manipulating the prc !
Amazing video as always Ross.
Informative and entertaining = perfection
Two questions at the 31:00 mark:
1) Where does the money come from for the Investment Bank to pay the Hedge Fund the $8.5mil?
2) How is that a profitable incentive for the Investment Bank?
Thank you so much Ross, you know this is exactly what I have been looking for since you posted about GameStop.
You the best teacher I ever had on stocks, you didn't let me down.
I am following you after this video forever!
BTW I know now that you have digged deeper about GME now(HIGHLY APPRECIATE YOU DID, BECAUSE YOU EXPLAINED VERY WELL)
You would be mind blown if you actually dig even deeper on the 140% (Or even more) shorts has a chance which was never covered.
I am glad I found this channel, I have been learning so much. Ross you are a great and passionate teacher, very authentic. Thanks!
Ross this class this information is gold. You are a great teacher educator. I thank you for your input. Blessings
Hang in Man , it’s the only game we have a play in. All the other games we are just on the sidelines praying 🙏
Brilliantly done. Swaps are crazy, I wasn't aware of their existence. Just for clarification, neither the hedge fund or the investment bank have to own shares of the company? This reminds me of a book I read on the Gold Rush, where people would just place wildy speculative bets on the daily.
Now you are getting it!
*Physical Silver is naked short 399 to one. That's almost 40 thousand percent.*
When people find out, it's game over for the financial system.
Great job again sir.
If it wasnt for roaring kitty and the little guy, GME would be toast a very long time ago. This is how they thank us.
love these type of contents! Helps the community of bag holders understand our position 😊❤
Thank you for teaching me how to become a day trader. the last year has been life changing for me and my family. Alot of it is due to your teaching so again thank you ross.
SO I thought the main thesis for today is that many of the shorts never closed their positions because closing the position would actually cause the short squeeze. When the stock was sold short at 140% there were not enough shares to cover the shorts. If the company goes bankrupt then those shares never need to be returned so it is pure profit. But if the company remains solvent then they must hold and hold and hold because the shares don't really exist to cover the short position.
the shorts have learned they can just pass the shorts around and now it doesn't show in the short interest #'s. Like musical chairs and when the music stops there aren't enough chairs for everyone.
This looks more and more like retail traders are effectively propping up the markets. This is probably why they have made it easier to trade. In essence it is theft from the inexperienced.
Early! Huge fan. Keep doing what your doing. Started two months ago, cant thank you enough.
The best video you have made yet!
If you’ve seen Oppenheimer, it is described in the movie that if the nuclear weapon were to be created and used - what could happen? One theory is there could be a negative effect on the atmosphere and cause a chain reaction, setting fire to the entire world and destroying everything, just from one nuclear weapon detonation.
I feel that the GameStop situation could have a similar effect, similar to what Warren Buffet alluded to with the quote mentioned in this video (if it is a direct quote or not). It is a volatile and unpredictable stock and situation and could lead to the economic collapse of civilisation if it strays too far.
this whole presentation was brilliant!
Great breakdown - Appreciate it! I thought the 75M share offer along with the early, unexpected earnings announce was a low blow as well!!
Keep doing what your doing buddy, love it! You're a rare gem
Great work, Brother!
I’d love it if you did a video that was a deep dive into Aladin and the algorithms that run the markets
One of your best videos
Fantastic instructional video. The best I've seen on shorting. I learned a great deal here.
Great content! I have subscribed 👍
Ross, I really appreciate this video. Very informative.
Very well educated video, greatly appreciate this. My main concern is the country and I do think it’s worth anyone involved to consider. All for the hedge funds getting it but I’m sure a lot of homeless or low income people who don’t even trade, likely get impacted. I’m all for people making money but the govt needs to make adjustments to the ridiculous naked shorting. What I think is funny is how often I hear “oh china’s market so manipulated!” And look at ours can it be much different. Greatly appreciate how you teach. Detailed, thorough, and not overly complicated and the white board proves to me how much you care about your viewers interest thank you
Word on the street is that there's more naked shorts now than in 2021
RK supposedly owns 75% of the interest and he's been dropping hints about the naked shorts.
Seriously, think about it. He put in $300m in one stock. Do you actually think someone with $300m who's been accurate would waste it all because of nonsense? He's a true leader
Good Work Ross!!! Loved the breakdown of this. People really need to understand his stuff... If they want to, but I agree the whole thing seems unethical to begin with. Is what it is, thanks for the great video Ross.
the shares of GME being diluted seems to be a bad move for investors short term, but long term now the company has the funds to re-invent it self which means the price is probably going to move higher in the future. The shorts will eventually have to cover.
What a wonderful explanation! Never knew this was a thing. No wonder a couldn’t understand the situation with Game stop. Top Notch Vid. Thanks
Thank you, Ross, for your great coverage on naked short selling.
Finally someone explained it well. thank you...
Excellent video Ross, well done.
That wasn't confusing at all. You did a great job explaining it to us but still kinda confusing. The stock market is effing wild!
Thx for the great video. Very infomative and clear, easy to understand. Keep up the awesome job.
I think it's pretty ironic that Robinhood does not even allow short selling.
OMG!!! just started trading and the emotion you speak of I know you feel as a father. The LET DOWN. Trying to make this work.
Between PFOF, NSS, HFT and who knows what else retail traders/investors are getting crushed
Lol there is no way you think its borderline unethical to short sell if your a day trader. Has to be the most ridiculous thing ive heard
Great video and explanations
So true Ross. I watch it happen all day on the T&S. You shouldnt be able to sell what you never bought. Problem solved. Good video.
great class. Thank you.
One of your better videos I have seen
First time watching this and I love it, like and subscribed already
Thanks for this Ross. You are good at educating people. Naked shorting is crazy.
can u do a video on whay kitty might be up to? his plans?
WAUW PERFECT. THANKS FOR ALL YOUR TIME. Greetings from NL
Great video 👍
Thanks talking about following your rules. Been losing lately and helps me be kinder when reflecting. 🙇♂️
if the point of markets is price determination, then shorting is just as valid as going long. both are necessary to find the value. the soviets could not determine a price for anything and it created a really miserable economic and political system. when asked, one of gorbachev's advisers said that had communism triumphed all over the world, they would have let new zealand keep a free market. why? because the soviets would still need a market to tell them the price of goods and services. central planners cannot do it. poorly managed companies deserve to be shorted.
Great video Ross!!!🎉 Thanks
Loved this video keep it up Ross ❤
I'm a long hold. I've not been very successful with day trading. I actually have my series 7 and 66 security license. I guess that makes me ultra conservative in the market.
I had 7 and 66 let my 7 go as I do RIA ONLY...
Great explanation..
If you were sensible you should be more or less break even on it, and now GME has 4 billion in the bank. That's the point for a lot of retail traders, it wasn't about a short squeeze for profit it was about breaking the short sellers, that's now done, with 4 billion and a $25 strike price, don't you think big money is going to see an easy long position? GME is not a meme stock, it never was, it's a genuine stock with potential that Short sellers tried to make a laughing stock of, it's now an interesting long position which is what Roaring Kitty always thought it was.
Ryan Cohen will do it again. He is creating a GameStop Holding. Retail investors are just collateral for him.
Loved this video, so informative!
Short selling is definitely unethical. Why on Earth is this legal?
Technically it’s not. The consequence is a fine. But, they often make a lot more profit than the fine. So, it makes crime worth it.
@@edwardconkle687 fine should scale with their profit, SMH
@@TimeFlies-d8b That makes too much sense. 😒
@@edwardconkle687what? There is no fine for short selling. Nor is it illegal
Why would you think it shouldn’t be legal? Nothing wrong with it as long as it’s done within the rules
It’s no different than any other bet you’d make on anything else
You just expressed my feeling in your first 1 minute of your video ! Thank you.
Just a note. A lot can find the 136% SI reporting. However there was a day that it was reported at 226%. Also, hearing you being scared of the swaps... I hope you read some of the information on superstonk about the swaps. If the theory is true, some history making stuff is about to happen real soon.
Thanks so much for this 👏
Bro i love your videos and the technical content you shared!
Thank you ross this was very useful. And I didn't trade game stop either I felt like I'm not experienced enough to ride that wave yet. I'll stay wi5h the obvious ones lol .. thanks ross
Very good commentary, I appreciate your effort and knowledge.
I’ve been in meme stocks since 2021, saw your video and thought they should be interesting and thank you for the solid content and knowledge
Thanks Ross very grateful for that information. I learned a lot ❣️
Shared a link to this video on Reddit. Excellent analysis.
Ross, I seriously feel like every time you make these videos, whatever the thing is you think is missing , is exactly what is about to happen
Thank you!
Just I been rattling my brain on this and I get into a rabbit holes on stocks so really appreciate it
You are so spot on every topic 👍👍👍
Very clear explanation, thank you
I'm off for the next couple weeks. Thinking about trying your program.
I was in it. It’s solid.
SUPER video!
Excellent explanation 📈💯💯💯