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2 10 Risks of Shorting intro Short Squeeze

9 views· 2:31· Jul 1, 2024

About This Video

In this video I’m kicking off a straight-to-the-point intro on the risks of shorting, and why “short squeeze” isn’t just a buzzword—it’s a real problem that can wreck you fast if you don’t respect the mechanics. When you short, you’re borrowing shares, you’ve got limited upside and potentially unlimited downside, and the market can move against you way faster than most new traders expect. I frame this as an early warning: if you’re going to short, you need to understand what can go wrong before you even think about entries. I also set the stage for how squeezes happen: crowded shorts, liquidity drying up, sudden demand (or forced buying), and the chain reaction of stops getting hit. The takeaway is simple—shorting is not “just buying but backwards.” It has extra layers like locate/borrow availability, hard-to-borrow fees, and the risk of getting trapped when the stock rips. If you’re learning to short, my goal here is to get you thinking in terms of risk first: position size, exits, and what you’ll do when the move doesn’t go your way.

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