Short selling has been BIG news the past few months, and there's plenty of money to be made during a short squeeze — if you have the know-how. And it's not nearly as complicated as many people believe — more on this in today's video...
Easily the biggest name amid the ongoing short-selling craze is GameStop, which reported earnings after Tuesday's close.
When you have a lot of people who are short a stock and the share price keeps going up, they have to exit those shorts. And how do they exit? By buying the stock back — at the now higher price.
When you buy a stock and it goes to zero, that's it. But when you short a stock, it can rise to infinity and beyond — so long as the share price keeps going up! So there's no limit to the amount of money you can lose if you're selling stocks short…
But if you can spot a squeeze before it happens, you can buy shares on the cheap and sell after it rockets up — buy low, sell high. That's trading 101! |
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