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This week brought the stock market to the forefront of everyone's mind... even those who've never traded or invested a day in their lives.
I've gotten A LOT of questions from friends, family, & coworkers asking wtf is going on lol.
So here's a *quick* thread on short selling.
I've gotten A LOT of questions from friends, family, & coworkers asking wtf is going on lol.
So here's a *quick* thread on short selling.
Short selling is, simply put, when someone borrows shares of a stock, sells it, then buys it back at a lower price to return to the lender. They're betting on the stock price going down so they can profit on the difference between the sell price and the buy price.
Short selling is risky because if stock price increases instead... there is no limit to how much you can lose as there's no limit to how high the price could rise.
This is what happened to hedge funds this week. They bet on $AMC and $GME to fall... but it did the opposite ;)
This is what happened to hedge funds this week. They bet on $AMC and $GME to fall... but it did the opposite ;)
What happened this week was a short squeeze.... squeezed those hedge funds right out of their yachts 
Short squeeze is when a stock dramatically increases in price, forcing short sellers to buy shares to prevent bigger losses. This ironically forces the stock price higher.
Short squeeze is when a stock dramatically increases in price, forcing short sellers to buy shares to prevent bigger losses. This ironically forces the stock price higher.
Short selling or trying to profit off a short squeeze is extremely risky, and I don't recommend it for new traders.
That being said, if you're new to all of this and want to start taking trading seriously I'll share some resources below to help you do this properly
That being said, if you're new to all of this and want to start taking trading seriously I'll share some resources below to help you do this properly
@AviPearl2 is an amazing resource to become a smarter trader.
He has a course to help you understand:
Why the market moves when/how it does
Recognizing and avoiding traps in the market
Recognizing and using trading patterns
Risk management https://gumroad.com/a/564532339
He has a course to help you understand:
Why the market moves when/how it does Recognizing and avoiding traps in the market Recognizing and using trading patterns Risk management https://gumroad.com/a/564532339
Even better than that, @AviPearl2 has a chatroom for traders.... one in which he recently helped a member earn $50K off one trade 
Trade signals and live calls
Daily guides
6 hour course + 2 hour work shop
Q&A
DM me for a $50 off code https://gumroad.com/a/564532339/ANKBN
Trade signals and live calls Daily guides 6 hour course + 2 hour work shop Q&A DM me for a $50 off code https://gumroad.com/a/564532339/ANKBN
I would be amiss if I didn't mention the 
@CJ_Johnson17th, especially since he helped a lot of you make money from $AMC
His new course teaches you how to find your own stock plays, as opposed to waiting on him to tell you what/when to buy. https://gumroad.com/a/783610995/WbZVZ
@CJ_Johnson17th, especially since he helped a lot of you make money from $AMCHis new course teaches you how to find your own stock plays, as opposed to waiting on him to tell you what/when to buy. https://gumroad.com/a/783610995/WbZVZ
As usual.... my DMs are open for any questions
