Thanks for watching everyone! Give this video a LIKE if you found it helpful. I appreciate it! Also if you did not see my last video explaining in detail the concept of short selling, then watch it here, ruclips.net/video/eVYLZtcjWPo/видео.html
The first time in my life, I have understood the term 'short sell'!!!! I couldn't figure out how people can sell shares that they don't own! Thanks, Jake! Btw, love that "Periodic Table of Elements" in the background! My all time favorite 'table'!
Excellent tutorial! I never fully understood short selling until watching this video. And that's cool that you actually made a bit of profit while we watched!
absolutely loving these videos. Keep them coming. It helps, since I use Schwab and their wording on everything is very legacy and daunting.. whereas, most other youtubers use Robinhood, which is a bit more user-friendly. Thanks. I know you got that whole series coming, hope you do one that also explains "buy to open" vs "buy to close" and "sell to open" vs "sell to close"
Hey Blake! I am currently working on a video series on trading options. I'll do live examples in my Schwab account as well. I hope more people find these useful. Thanks for the support!
Thank you thank you thank you. I learn so much better by seeing an example versus listening to my friends who are already sophisticated on this stuff. Tbh, I thought this was SO much harder than what you just demonstrated. I must have been confusing it with even more sophisticated trading techniques lol. Will watch more just to make sure I understand why a short sell shouldn't be held for too long.
THANK YOU!!!!!!!!!!!!!!!!!!! THANK YOU, I accidentally did an short sale and I did not how to ride from it off. and I found your video !!!! save my life Jake thank you again!
EVERY one of stocks I tried to short sell on Schwab fails on Review Order screen with this message: "Your request to enter a short sale for this security cannot be processed as there are not sufficient shares available." Even for a value of about 150 dollars worth. How can I get around this unavailability?
Just subscribed to your channel Jake! Keep delivering great financial educational videos. Your service to the investing community is much needed and appreciated 👍
Thanks for this video, recently I made a stupid investment in a stock that will almost certainly keep falling. I will try short selling some of my shares to try and make some $ back! Definitely subscribing to your channel
Jake. Does Charles Schwab let you sell and rebuy the same day/minute/hour if you want to better reposition yourself with a stock in the same trading day or is there a delay? e.g. Tesla goes up past original buy share price but I believe it's going to go back down again after I cash out and I want to rebuy. Thanks
man i have CS since March and kind of surprised with this short sell option.. lol i think i would want to try this with this market volatility and its always down... great video!
Cool Jake! I'm trying to learn about shorting! i'll sneak around your channel, with i get more info about the risks. the graphic analyses i am developing, cheers.
Jake TD is merging with Charles Schwab. TD is notorious for not having shorts for ETB or HTB. How is shorting with Charles Schwab? Do they have a decent amount of HTB shorts? Thanks!
Thanks Karan! I have a series of videos planned on trading options. It's a complicated topic and it's going to take me a couple videos to cover everything I need to cover. Stay tuned for it. It's coming soon!
Excellent video. Do I need to be approved from Charles Schwab to perform short sells? I did open my account, funded ($1500), but my short sale (about $500) says : I do not have enough to cover my position. what am I doing wrong?
i know this is 2 years late, but this is more so for anyone else reading this comment and wondering the same thing. Its probably because they require you to have a certain amount of money/assets as collateral
So when do you need to return the stock? I saw one comment you said it could be whenever. What if the stock prices goes infinitely high and I never return it?
You broker keeps track of how in the negative you are. Your losses on a position you short can be infinite. But your broker keeps track of this and as soon as you can't cover your short position with only 30% margin remaining in your account, you get a margin call and they force you to buy it back, liquidating whatever is in your account to force you if need be. Check out my video on Margin: ruclips.net/video/YrrlGn1wUGE/видео.html
Hi I am fairly new to trading on Charles Schwab platforms. This question may seem silly but when I sold my stocks, the stocks still appear on my equities category. Is that typically or does it get remove at some point? Thanks in advance!
I think I got the hang of it, problem is when I try to buy the shares back, I get errors/not able to complete the transaction, would I have to wait for the market to open? I’m trying it after the market closes
If I were to short sell, it would only be while day trading and if I lost more that 5% then I would just eat it and buy back the stock. I couldn't imagine trying to short something and holding it weeks or months. Not for me!
No, there is no expiration date, but your broker does have the right to request you cover your short sale at anytime. Though they almost never do this.
Hey Jake! I also use Schwab. To limit upside risk, could i use a trailing buy order (as i would with a trailing sell order) to cover at 10%? this would manage my risk easily but im unsure if its possible.
So, let me see if I got this right. You do a 'short' which gives you the stock for free , and then you sell it cause you anticipated the stock to drop lower than the market buy price of the purchase? (Sounds like you could make a decent amount of money if done right.) You need to have the settled funds to cover it regardless though, correct? If not, what happens happens if you short sell without an available balance? Still confusing but slowly learning it...I think. lol. Thanks for the video though. One more thing. Let's say you sell $50K of stock and tax time comes next year. How do you figure out the tax amount you will pay?
Yes, you broker will set aside how much buying power you need to buy back your position should the stock go up in value (and your short position is losing value). If you short-sold $50K, you haven't made any profit yet. You only pay taxes on profit and you only make a profit if you buy back the stock and return it to your broker for a net profit.
I don't really day trade yet. StreetSmart Edge is just more functionality than I need at the moment. I am making these simple tutorials for beginners, but I do intend on making tutorials for StreetSmart Edge soon!
Open up a brokerage account, for which all you need is a social security number. I used Schwab, because they list lots of statistics. If you're like me and you don't know much about the companies you want to buy, just remember to never "buy high, sell low", and always "buy low, sell high". I've gotten a return of about 17% so far, and I started at the beginning of last May.
Hey Jean-Paul! I recommend watching as many RUclips videos as you can! If you don't have a brokerage account, I recommend starting with Robinhood and putting a $100 on it to play around with buying and selling. It's a great resource for new investors! Use someone's referral link and you'll get a free stock to start with. join.robinhood.com/jacobb4801
As I invest more, I watch more of your videos, now I know the meaning of shorting a stock. What about a situation like this, you short a stock XYZ worth $10, and hope it to go down but also want to put a safety net at $10.50, so can you cash secure put for $10.50, would that work?
Not sure I follow that scenario. A cash secured put is an agreement to buy 100 shares. If you shorted 100 shares exactly, then yes, this would cover you to $10.50 a share. But you are selling a cash secured put that is in the money. You definitely will get exercised on and have to buy 100 shares at $10.50 if the price went down. Shorting wouldn't then benefit you at all.
@@JakeBroe Thank you, the scenario that I was trying to put together is, to put a high cap on the stocks that I am shorting, so in case it goes to 20, I would buy it at 10.50 and have myself covered, but if it goes down below 10, I will keep the profit. Would have been nice :)))
Using Schwab, once you have completed the short sale, how do you set a price where you want to exit the trade automoatically? For example, I shorted a stock at $25 but don't want to lose more than $5 so I want to cover it if it hits $30. Or the reverse, I short sell it at $25 and want to cover it if it hits $20 and take the profit. Thanks.
Awsome Video. Explaned it very well. I never short sold stocks because I thought you had to sign up for margin through your brokerage account. But after watching this video it appears you can just use a cash account. Is that right?
Hey Ryan! No, maybe I didn't explain it well, but you definitely do need to enable a margin account with your broker to be able to Short Sell. Margin just means borrowing, and be definition to short sell you are borrowing against your broker. Good luck!
Hey Jake... I tried to short sell following your example but I got a message that says: "not allowed in an account that does not have a margin feature" I do have Cash available.
Hey Mickey! It all depends on why you got in. If you think the company is over valued and a drop should come, then you would actually want to short even more to lower (raise) your cost basis. I don't like the idea of giving up money just because the price moved 5%. If that was enough to cause you to give up your position, then the stock probably shouldn't have been shorted in the first place. Good luck!
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Thanks for watching everyone! Give this video a LIKE if you found it helpful. I appreciate it! Also if you did not see my last video explaining in detail the concept of short selling, then watch it here, ruclips.net/video/eVYLZtcjWPo/видео.html
The first time in my life, I have understood the term 'short sell'!!!! I couldn't figure out how people can sell shares that they don't own! Thanks, Jake!
Btw, love that "Periodic Table of Elements" in the background! My all time favorite 'table'!
Excellent explanation
Actually explained how you return the shares after you make the short purchase. Great video
Thanks Rob! I appreciate that!
Short selling "for dummies" made easy. Thank you. I am learning so much from you with my Schwab account.
Jake: 69 cents
Everyone watching: Nice
Yup!
Damn... I missed it, lol.
this
You made this simple, I would like if you could show issues where one has to get out of a short position because the stock is going up. Thanks
\
Thank you for your service sir. Your the backbone leading young america into a better financial future for everyone 👍
I am trying Daniel! Thanks for the high praise!
Love the army reference!
Yes I can already smell millionss . I'm gonna start by shorting lifw 😈
Excellent tutorial! I never fully understood short selling until watching this video. And that's cool that you actually made a bit of profit while we watched!
Thanks Tom! I've got some more solid videos on trading coming soon. Check back this weekend!
I opened my CS account yesterday to start my new journey in stock trading and boom! Already learned how to short! EXCELLENT video! Thanks, Jake!
Thanks! I've been investing on schwab for 3 years and have missed so many opportunities. Not any more. Thank you sir.
You are a very great teacher!
I have liked every video
to honor what you are doing for people!
Thank you so much Matthew! I appreciate the support and I have more content coming soon. Cheers!
I have had friends try to teach me short selling and none of them are as clear and concise as you. Thanks!! Looking forward to future videos.
Thanks stacks! I have some more great videos coming soon explaining the basic movements of the market. Cheers!
Fr...I was so lost and now I feel found lol.
Thank you for the video. How do you short sell stocks that you might have already?
absolutely loving these videos. Keep them coming. It helps, since I use Schwab and their wording on everything is very legacy and daunting.. whereas, most other youtubers use Robinhood, which is a bit more user-friendly. Thanks. I know you got that whole series coming, hope you do one that also explains "buy to open" vs "buy to close" and "sell to open" vs "sell to close"
Hey Blake! I am currently working on a video series on trading options. I'll do live examples in my Schwab account as well. I hope more people find these useful. Thanks for the support!
Amazing tutorial! I have been looking for the channel for short sail for 2 weeks. Finally, I found out! Thank you very much Jake!
Thanks Vivian! I appreciate the comment. Be sure to subscribe if you have not already. I will have lots more Schwab investing videos starting in 2021!
Exactly what I was looking for. Thank you.
this was the best example of short trading i have seen.
Thank you thank you thank you. I learn so much better by seeing an example versus listening to my friends who are already sophisticated on this stuff. Tbh, I thought this was SO much harder than what you just demonstrated. I must have been confusing it with even more sophisticated trading techniques lol. Will watch more just to make sure I understand why a short sell shouldn't be held for too long.
Great video sir! Does CS require a margin account for shorts, Puts and Calls?
THANK YOU!!!!!!!!!!!!!!!!!!! THANK YOU, I accidentally did an short sale and I did not how to ride from it off. and I found your video !!!! save my life Jake thank you again!
Jake as always : great video. I was looking for the same info in Charles Schwab and it is impossible to find. Then I remembered of you!
Haha, I am glad you remembered me Andrea! Cheers!
EVERY one of stocks I tried to short sell on Schwab fails on Review Order screen with this message: "Your request to enter a short sale for this security cannot be processed as there are not sufficient shares available." Even for a value of about 150 dollars worth. How can I get around this unavailability?
Just subscribed to your channel Jake! Keep delivering great financial educational videos. Your service to the investing community is much needed and appreciated 👍
Awesome! Welcome to the channel Mike! Great to have you with us!
Thanks for this video, recently I made a stupid investment in a stock that will almost certainly keep falling. I will try short selling some of my shares to try and make some $ back! Definitely subscribing to your channel
If I currently owned the stock,I would have to sell it in order to short sell?
Excellent video, clear, to the point, quick, samples are like pictures say more than 1000 words.
Is there a time limit of when you have to re-buy your short sells?
Thank you so much for this video. Man of the people
Thank you Jake, this is really helpful!
Jake. Does Charles Schwab let you sell and rebuy the same day/minute/hour if you want to better reposition yourself with a stock in the same trading day or is there a delay? e.g. Tesla goes up past original buy share price but I believe it's going to go back down again after I cash out and I want to rebuy. Thanks
Jake, are you planning on making more videos on investing? Your videos are the best
man i have CS since March and kind of surprised with this short sell option.. lol i think i would want to try this with this market volatility and its always down... great video!
Thanks Aris! Cheers!
Cool Jake! I'm trying to learn about shorting! i'll sneak around your channel, with i get more info about the risks. the graphic analyses i am developing, cheers.
arent there some risks to short selling and how can you protect yourself from them when short selling?
So just to be clear.. can I do a short sell and then buy back within a week or it has to be done the same day?
Hey Joel! You can buy is back whenever you want, same day or next week/month/year... whenever!
Thank you for that, that was a perfect example of how to pass knowledge on
Jake TD is merging with Charles Schwab. TD is notorious for not having shorts for ETB or HTB. How is shorting with Charles Schwab? Do they have a decent amount of HTB shorts? Thanks!
One of the best video so far ,, love it bro ,, thnxxx so much ,,
Can u plz make a video on options how it works 🙏🙏🙏🙏🙏
Thanks Karan! I have a series of videos planned on trading options. It's a complicated topic and it's going to take me a couple videos to cover everything I need to cover. Stay tuned for it. It's coming soon!
Thank you so much, my English is not good, but I am trying to hear what you are saying to learn.
this is a great explanation, thank you!.
Thank you for making this video Jake! It was much appreciated 🙏🏽
Thank you and great demo to help me understand how a short sell works.
Excellent video. Do I need to be approved from Charles Schwab to perform short sells? I did open my account, funded ($1500), but my short sale (about $500) says : I do not have enough to cover my position. what am I doing wrong?
i know this is 2 years late, but this is more so for anyone else reading this comment and wondering the same thing.
Its probably because they require you to have a certain amount of money/assets as collateral
So when do you need to return the stock? I saw one comment you said it could be whenever. What if the stock prices goes infinitely high and I never return it?
You broker keeps track of how in the negative you are. Your losses on a position you short can be infinite. But your broker keeps track of this and as soon as you can't cover your short position with only 30% margin remaining in your account, you get a margin call and they force you to buy it back, liquidating whatever is in your account to force you if need be.
Check out my video on Margin: ruclips.net/video/YrrlGn1wUGE/видео.html
@@JakeBroe thanks mate
So, is this the Think or Swim Interface Swab Owns? or ????
Jake like your channel. Keep up the good work.
Thanks for letting me know Leonardo! Tell your friends, haha
What if we want to short sell something in the future? Like 30 days or next quarter
So the actions of both shorting and covering the same stock in the same day do not consider day trading? I am a little confused. Thanks in advance.
Hi I am fairly new to trading on Charles Schwab platforms. This question may seem silly but when I sold my stocks, the stocks still appear on my equities category. Is that typically or does it get remove at some point? Thanks in advance!
Hey B P! When you sell a stock, it take 2 business days for the sale to settle. They will go away after 2 business days!
@@JakeBroe thanks Jake I really enjoy your video and definitely give me a better understanding about trading.
I think I got the hang of it, problem is when I try to buy the shares back, I get errors/not able to complete the transaction, would I have to wait for the market to open? I’m trying it after the market closes
Great walkthrough. Thank you!
Thanks tyro! Cheers!
Thank again Jake! Awesome video!
Thanks Walter! I appreciate the comment. Cheers!
Great channel Jake so helpful - thank you
Thanks Garth! Cheers!
Any dividends paid by the shorted stock are deducted from your cash position on the ex-dividend date.
Always very valuable content... don't know if I'll start short selling but very useful to know that I have the potential now! Lol
If I were to short sell, it would only be while day trading and if I lost more that 5% then I would just eat it and buy back the stock. I couldn't imagine trying to short something and holding it weeks or months. Not for me!
@@JakeBroe risk averse haha
Love all your content, just wish you covered a lot of this on streetsmartedge as well from the perspective of intraday - fast paced perspective.
Unfortunately because of my full time job, I can't really be a day trader. Maybe some day!
@@JakeBroe Thanks for responding. Will still be watching your stuff into the future. Keep up the fine work.
Thanks for sharing you video, very informative for beginner like me.
Jake, do is there a call date on short selling?
No, there is no expiration date, but your broker does have the right to request you cover your short sale at anytime. Though they almost never do this.
Great 👍 video thanks for the good information 👍
Hey Jake! I also use Schwab. To limit upside risk, could i use a trailing buy order (as i would with a trailing sell order) to cover at 10%? this would manage my risk easily but im unsure if its possible.
Hey Tony! Yes, this kind of order is possible and used.
thanks Bro !
thanks for explaining how --
Thank you Jake!
You are very welcome Constantine! Cheers!
Can you see what your profit is before you buy them back?
Solid content! Thanks Jake!
You are very welcome Jose! Cheers!
alll explains a lot about hte gamestop short squeeze
Wallstreetbets forces the hedge funds to buy back GME prices at an inflated price
Do I learn something? Yes and thank very much
So, let me see if I got this right. You do a 'short' which gives you the stock for free , and then you sell it cause you anticipated the stock to drop lower than the market buy price of the purchase? (Sounds like you could make a decent amount of money if done right.) You need to have the settled funds to cover it regardless though, correct? If not, what happens happens if you short sell without an available balance? Still confusing but slowly learning it...I think. lol. Thanks for the video though.
One more thing. Let's say you sell $50K of stock and tax time comes next year. How do you figure out the tax amount you will pay?
Yes, you broker will set aside how much buying power you need to buy back your position should the stock go up in value (and your short position is losing value). If you short-sold $50K, you haven't made any profit yet. You only pay taxes on profit and you only make a profit if you buy back the stock and return it to your broker for a net profit.
amazing video man!
How very odd... I want to short GM at $43 on 5/28/24, using Charles Schwab and this is the first video I found... eerie.
Why don't you use Street Smart Edge?
I don't really day trade yet. StreetSmart Edge is just more functionality than I need at the moment. I am making these simple tutorials for beginners, but I do intend on making tutorials for StreetSmart Edge soon!
What about naked short selling? How do you do that on Charles Schwab?
Thank you, very well explained with a great example.
Thanks for watching Tony! Cheers!
Excellent demo!
thank you very much bro
This was so helpful, thank you!
This is a great video thank you so much
How do I start investing? I have no idea where to start
Open up a brokerage account, for which all you need is a social security number. I used Schwab, because they list lots of statistics.
If you're like me and you don't know much about the companies you want to buy, just remember to never "buy high, sell low", and always "buy low, sell high". I've gotten a return of about 17% so far, and I started at the beginning of last May.
Hey Jean-Paul! I recommend watching as many RUclips videos as you can! If you don't have a brokerage account, I recommend starting with Robinhood and putting a $100 on it to play around with buying and selling. It's a great resource for new investors! Use someone's referral link and you'll get a free stock to start with. join.robinhood.com/jacobb4801
Please help .
If i own 900 shares that costed me $7 but now are $1.70
What is my best option to at least recover premiums ?
very clear!
Awesome video, thanks
Is there a call date on short selling?
No, there is no expiration date when short selling. You can hold the position as long as you want.
Thx for the info
Is that 69 cents your total profit or would your total profit be $6.90 because you short sold 10 shares?
thank u
You are welcome Colin! Cheers!
Thanks!
You are welcome BACDI! Cheers!
As I invest more, I watch more of your videos, now I know the meaning of shorting a stock.
What about a situation like this, you short a stock XYZ worth $10, and hope it to go down but also want to put a safety net at $10.50, so can you cash secure put for $10.50, would that work?
Not sure I follow that scenario. A cash secured put is an agreement to buy 100 shares. If you shorted 100 shares exactly, then yes, this would cover you to $10.50 a share. But you are selling a cash secured put that is in the money. You definitely will get exercised on and have to buy 100 shares at $10.50 if the price went down. Shorting wouldn't then benefit you at all.
@@JakeBroe Thank you, the scenario that I was trying to put together is, to put a high cap on the stocks that I am shorting, so in case it goes to 20, I would buy it at 10.50 and have myself covered, but if it goes down below 10, I will keep the profit. Would have been nice :)))
Using Schwab, once you have completed the short sale, how do you set a price where you want to exit the trade automoatically? For example, I shorted a stock at $25 but don't want to lose more than $5 so I want to cover it if it hits $30. Or the reverse, I short sell it at $25 and want to cover it if it hits $20 and take the profit. Thanks.
Great question. I have the same question. I'm guessing that you simply go back in and place a buy limit order at whatever price you choose.
See post not far below made by @tonybermeo5214.
Jake loves America
Thanks for the demo! I can’t wait to start losing money!!
Hi jake
Can u do a tutorial how to short sell using fidelity app please :)
I can look in to it! Cheers!
great vid, gonna short some tesla! THANK YOU!
Haha, thanks Kevin! Be careful!
Very interesting
Awsome Video. Explaned it very well. I never short sold stocks because I thought you had to sign up for margin through your brokerage account. But after watching this video it appears you can just use a cash account. Is that right?
Hey Ryan! No, maybe I didn't explain it well, but you definitely do need to enable a margin account with your broker to be able to Short Sell. Margin just means borrowing, and be definition to short sell you are borrowing against your broker. Good luck!
You didn't talk about dates and strike prices?
Dates and strike prices are related the trading options. Short selling a single stock or etf is not related to trading options.
Very helpfull
Thanks for the comment Grayson! Cheers!
OMLY REAL EXAPMLE I SAW ???? THANKS
Nice.
Thanks RTW! Cheers!
Hey Jake... I tried to short sell following your example but I got a message that says: "not allowed in an account that does not have a margin feature" I do have Cash available.
Hey Joel! You must enable margin with Schwab to be eligible for short sell. It is just their requirement even if you have the cash.
Seems like all my stocks always go down-- seems like there is more money in shorting
Great!
Please be so kind as to add comments about the use of a stop (buy-back) order for a lunge upward. What say? Lose 5% and get out?
Hey Mickey! It all depends on why you got in. If you think the company is over valued and a drop should come, then you would actually want to short even more to lower (raise) your cost basis. I don't like the idea of giving up money just because the price moved 5%. If that was enough to cause you to give up your position, then the stock probably shouldn't have been shorted in the first place. Good luck!