Trading 101: What is a "Short Squeeze"?

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  • Опубликовано: 9 июн 2024
  • The stock market is a crazy place where money can be made no matter what happens. How so? Due to a trading and investing strategy known as "going short", you can literally make money from a stock price going down in value. While the stock market is very expansive in all the opportunities it can give you, it can also be a very risky place where large amounts of money can be lost. In the world of "shorting stocks" and "going short", you must be aware of and avoid what is known as a "short squeeze". Perhaps you've heard this term, but if you are a beginner in the stock market and just getting started, it would be normal for you to have no idea what it means. Let me show you how a short squeeze works and what causes it (and continues to cause it). Learning how to trade and invest means understanding the risks involved and this is definitely a risk you need to be aware of.
    What is "Shorting" / "Going Short"? - learn the basics HERE (claytrader.com/videos/shortin...)
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Комментарии • 1,2 тыс.

  • @smash4139
    @smash4139 3 года назад +268

    he explained like we’re kindergarten students that much easy to understand man love you

    • @claytrader
      @claytrader  3 года назад +11

      Glad it helped!

    • @chivasdeguadalajara
      @chivasdeguadalajara 3 года назад +2

      @@claytrader Great job buddy 👍subscribed

    • @claytrader
      @claytrader  3 года назад +3

      @@chivasdeguadalajara welcome aboard!

    • @5qwert7
      @5qwert7 2 года назад +3

      nice! Explained in normal english. I understood 100% as compared to like 30% on other trading videos. liked and subscribed

    • @claytrader
      @claytrader  2 года назад +2

      @@5qwert7 thanks!

  • @Dreadlock1227
    @Dreadlock1227 3 года назад +275

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

    • @claytrader
      @claytrader  3 года назад +22

      Many people lol

    • @johnhartmann8592
      @johnhartmann8592 3 года назад +3

      🤣🤣🤣 right here

    • @claytrader
      @claytrader  3 года назад +6

      @@johnhartmann8592 cheers

    • @red149
      @red149 3 года назад

      many many many lol

    • @red149
      @red149 3 года назад +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.

  • @joespinosa1049
    @joespinosa1049 3 года назад +203

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

  • @mu9284
    @mu9284 4 года назад +178

    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 года назад +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 года назад +4

      what's your price target? I also heard about GME mooning and I'm curious

    • @claytrader
      @claytrader  3 года назад +3

      Cheers

    • @colemccoy231
      @colemccoy231 3 года назад +3

      @@cargojoe at least $30, but obvi I want more

    • @yusufniamati278
      @yusufniamati278 3 года назад +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 года назад +3

      Me too! $17avg. GME hit $50-$60 historically during the last 2 console cycles, and now Cohen is gonna enforce max profits.

  • @DaddyFutbol
    @DaddyFutbol 3 года назад +20

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

  • @ktmzombieryder4166
    @ktmzombieryder4166 4 года назад +44

    I was a part of tsla history last month, my calls went from .15 to $40, what a wild ride.

    • @claytrader
      @claytrader  4 года назад +4

      wild indeed

    • @dave-yj9mc
      @dave-yj9mc 4 года назад +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 3 года назад

      hope u bought 5k worth if calls

  • @mclark202
    @mclark202 3 года назад +54

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

  • @hoodieyearround8641
    @hoodieyearround8641 3 года назад +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

  • @pabloaguila6344
    @pabloaguila6344 3 года назад +6

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

  • @Swaggaccino
    @Swaggaccino 3 года назад +111

    “If a company is not garbage..”
    Lmao GME

    • @yaremadzu9566
      @yaremadzu9566 3 года назад +5

      The whole GME thing just makes me smile lmfao

    • @claytrader
      @claytrader  3 года назад +4

      cheers

    • @trentc6069
      @trentc6069 3 года назад +5

      I've never seen cramer scream so much 😂😂

    • @claytrader
      @claytrader  3 года назад +2

      @@trentc6069 lol

    • @prickayeey8420
      @prickayeey8420 3 года назад +3

      Gme execs eating stake and lobsters all week long

  • @tinly1
    @tinly1 3 года назад +9

    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

  • @nailcarter1523
    @nailcarter1523 4 года назад +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 года назад +2

      Thanks for watching

    • @dragosvoda1078
      @dragosvoda1078 4 года назад

      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 года назад

      Dragos Voda there fixed !!!!!

  • @ajbrown3608
    @ajbrown3608 3 года назад +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.

  • @healthychocolatenews
    @healthychocolatenews 2 года назад +2

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

  • @e.davidjohnson4805
    @e.davidjohnson4805 2 года назад +3

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

  • @timothymark8254
    @timothymark8254 4 года назад +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.

  • @shawngressel5339
    @shawngressel5339 4 года назад +3

    New Subscriber, thank you for the work you are putting into these videos!

    • @claytrader
      @claytrader  4 года назад +1

      Thank you for watching, and welcome to the channel!

  • @gerryramosftw
    @gerryramosftw 3 года назад

    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!

  • @alant6480
    @alant6480 3 года назад +1

    Clay, thanks for making it so clear!

  • @dave-yj9mc
    @dave-yj9mc 4 года назад +6

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

  • @jonboybilly
    @jonboybilly 3 года назад +29

    Anyone came to learn what a short squeeze was because of GME???

    • @claytrader
      @claytrader  3 года назад +4

      Been a monster!

    • @AlejandroT1
      @AlejandroT1 3 года назад +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 года назад +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 года назад +1

      @@marie8872 bummer!

    • @claytrader
      @claytrader  3 года назад +1

      @@AlejandroT1 good ol' hindsight

  • @nicholassheppard9311
    @nicholassheppard9311 2 года назад

    Thanks brother, appreciate your time.

  • @brianrachmat3492
    @brianrachmat3492 2 года назад +1

    I finally understand "short squeeze" Thank you.

  • @TheBlablawww
    @TheBlablawww 3 года назад +3

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

  • @chocolateyartstudio385
    @chocolateyartstudio385 4 года назад +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 года назад

      Thanks for the feedback and thanks for watching.

  • @hapshabyahyisrael9810
    @hapshabyahyisrael9810 2 года назад

    I am loving this. Very simple.

  • @cle0ph
    @cle0ph 2 года назад

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

  • @EthePrequel
    @EthePrequel 3 года назад +13

    You had me at the stick figure ! Great explanation m. Thank you for creating this content to help developing investors

  • @shanmank
    @shanmank 3 года назад +3

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

  • @ellieisaenko5858
    @ellieisaenko5858 3 года назад +1

    Thanks Clay! Great video. You really have a gift explaining complex things in a way that is super clear and easy to understand.Much appreciated!

  • @Kel336
    @Kel336 7 месяцев назад

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

  • @karlbooklover
    @karlbooklover 3 года назад +16

    came here because r/wallstreetbets

  • @dreambigstudios8046
    @dreambigstudios8046 3 года назад +3

    Just Joined the Rocket Ship!!!!

  • @Internet_user777
    @Internet_user777 3 года назад

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

  • @TravisBandManAndy
    @TravisBandManAndy 2 года назад

    Sound explanation, Clay. Thanks brotha.

  • @finalframeproductions1143
    @finalframeproductions1143 3 года назад +2

    Bro I never comment on RUclips videos . Literally the light bulb went off in my head . Great job dude

  • @oscarozden8759
    @oscarozden8759 3 года назад

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

  • @nancyta3948
    @nancyta3948 2 года назад

    Easy understand, well done, helpful …Thanks

  • @abtahichowdhury1385
    @abtahichowdhury1385 3 года назад

    THANKS, SIR. HELPED A LOT

  • @destineon9438
    @destineon9438 3 года назад +1

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

  • @paulmark992
    @paulmark992 3 года назад

    Thank you for the explanation.

  • @ericxiong7781
    @ericxiong7781 4 года назад +1

    Great explanation! Thanks Clay!

  • @iAmTQH
    @iAmTQH 2 года назад

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

  • @abdeoupox
    @abdeoupox 3 года назад

    Loved the course. Very well explained. Thank you!

  • @xxxag1768
    @xxxag1768 3 года назад +1

    Extremely helpful!!!

  • @jarrettw1981
    @jarrettw1981 Год назад

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

  • @sharikacrenshaw4236
    @sharikacrenshaw4236 Год назад +1

    Thanks for the perfect breakdown🥰

  • @isaacsogunro5179
    @isaacsogunro5179 2 года назад

    Great explanation. Thanks!

  • @wojciechpudlo1974
    @wojciechpudlo1974 4 года назад +1

    I like how you put it man. Really had fun watching this video. Couldn't agree more.

  • @moeodeh3741
    @moeodeh3741 3 года назад

    MAN THANK YOU SO MUCH YOU ARE ONE OF THE BEST ON RUclips
    THANK YOU AGAIN

  • @JRyderEngraving
    @JRyderEngraving 3 года назад

    That really helped me out understanding, thank you!

  • @azhar145
    @azhar145 4 дня назад

    really nice description. Thank You.

  • @tonychicaia1804
    @tonychicaia1804 3 года назад

    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.

  • @Rosejsa
    @Rosejsa 2 года назад

    thank you so much for making this video, great explanation !!!

  • @ProblemForSolution
    @ProblemForSolution 3 года назад

    After watching a few videos about short squeeze and not understanding a thing I watched your video and instantly understood, good job.

  • @michaelmurray1968
    @michaelmurray1968 3 года назад

    What a great video! Thanks

  • @h.b1258
    @h.b1258 3 года назад

    Great and simple explination! Thank you

  • @primeminister7885
    @primeminister7885 2 года назад

    I understand now, thanks Clay 🤩🎯

  • @kengthor4801
    @kengthor4801 3 года назад

    Love the video! Really helpful drawing it out

  • @simple-human-being
    @simple-human-being 2 года назад

    Great video, to the point, appreciate it

  • @Jessica99152
    @Jessica99152 2 года назад

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

  • @the_game188
    @the_game188 4 года назад

    very clear and helpful , thank you

  • @FernandoQuevedo
    @FernandoQuevedo 3 года назад

    Thank you for an EXCELLENT and clear explanation. You earned my sub.

  • @dots_1
    @dots_1 3 года назад +2

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

  • @chocolatecoveredgummybears
    @chocolatecoveredgummybears Год назад

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

  • @stephlight123
    @stephlight123 2 года назад

    Wow thank you for this explanation. New subscriber!

  • @angelabolado8803
    @angelabolado8803 3 года назад +1

    Thank you Clay for explaining how holding and how these short squeezes can benefit regular people.

    • @claytrader
      @claytrader  3 года назад

      Thanks for watching!

    • @claytrader
      @claytrader  3 года назад

      @Jon Jukoba thanks for the thoughts

  • @rightquestions8870
    @rightquestions8870 3 года назад

    Thank you for this video❤️

  • @erarandom1116
    @erarandom1116 3 года назад +2

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

    • @claytrader
      @claytrader  3 года назад

      A good feeling for sure!

  • @sureshkm
    @sureshkm 3 года назад

    Very well explained! Thank you!

  • @tobyreckards9029
    @tobyreckards9029 3 года назад

    This was great think you . Finally some one I understand

  • @Shadow-rt9eq
    @Shadow-rt9eq 2 года назад

    I didn't expect much but very good explanation

  • @sami6593
    @sami6593 3 года назад

    thanks clay that was an awesome example

  • @kreativmindz1
    @kreativmindz1 3 года назад

    great explanation Clay. Thanks

  • @finn7530
    @finn7530 Год назад

    thank you so much

  • @maryallisonmusic615
    @maryallisonmusic615 3 года назад

    This was so helpful! Thank you

  • @Vladm557
    @Vladm557 3 года назад

    Thanks for explaining in a great way

  • @cal7283
    @cal7283 Год назад

    Very good explanation buddy. Thank you.

  • @parkerterlaak2154
    @parkerterlaak2154 4 года назад

    Awesome Man. One video convinced me to Subscribe. Keep up the great work.

  • @matthewray5954
    @matthewray5954 3 года назад

    Great video. Thanks for explaining this to us

  • @mehrdad1065
    @mehrdad1065 3 года назад

    thank you . it was helpful.

  • @lonnirenee7645
    @lonnirenee7645 4 года назад

    Now I understand short squeeze. I like the way how you explain it.

  • @AkuaB_RN
    @AkuaB_RN 2 года назад +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  2 года назад

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

  • @quanto8679
    @quanto8679 2 года назад

    Finally understood !

  • @raymac6262
    @raymac6262 2 года назад

    Great explanation Clay. Well done

  • @jerranamo
    @jerranamo 3 года назад

    Awesome, video! Super simple and easy to understand.

  • @robertwilliams6605
    @robertwilliams6605 3 года назад

    Thank you

  • @brandonl2oss
    @brandonl2oss 3 года назад

    Thank you so much!!!!!

  • @justintavella7043
    @justintavella7043 3 года назад

    So greatly explained bud

  • @johnandino3170
    @johnandino3170 2 года назад

    thank you for teach me this method you are #1

  • @hamzains
    @hamzains 2 года назад

    Very well explained.

  • @itsLightShowFFinc
    @itsLightShowFFinc 3 года назад

    Just hit that subscribe button. Thanks man, you are amazing

  • @DallasHVac
    @DallasHVac 3 года назад

    Thx for explanation, I get it now

  • @golfpro2023
    @golfpro2023 2 года назад

    thank you

  • @tysoncleave872
    @tysoncleave872 4 года назад

    Awesome video man, well explained!

  • @okay7154
    @okay7154 3 года назад

    Learned a lot today

  • @aleceiffel80
    @aleceiffel80 3 года назад

    Brilliant explanation. Subscribed!

  • @jamiebury1807
    @jamiebury1807 2 года назад

    Best explanation yet

  • @joestofey1527
    @joestofey1527 3 года назад

    Helpful..ty..

    • @claytrader
      @claytrader  3 года назад

      Thanks for watching Joe!