Welcome back to the channel everyone today i want to talk about how you should sell your shares during the mother of all short squeezes. Should you use market or limit orders, and should you sell through lit exchanges, or does it not really matter so stay tuned? And let's make some money now. Obviously this is another one of my quickfire q, a videos and if you have any amc, squeeze related questions be sure to leave them down in the comments below and i'll answer them in an upcoming video, and i want to dive straight in with the key information. So, as you can see, i've split this video into two main chunks.

Should you sell through exchanges, or does it not really matter and should use a market sell order, a limit, sell order or maybe even a trailing stop? So, let's start by talking about selling through lit markets versus selling through dark. Now you may think: well, tom, that's an obvious answer. You should obviously sell through lit exchanges, but why is it important to sell through the exchanges or does it not really matter? For example, if you still have your shares in robin hood and weeble, is that okay, or should you move them over to different exchanges and sell through those lit markets? Now, obviously, if you're selling dark, that means you're, either selling through a dark pool or you could potentially even be selling off exchange and not even really realize it. Obviously, if the market maker internalizes your trade, they may then use that trade in a private sale or an over-the-counter sale or an off-book sale that doesn't even impact on the market price.

Now, there's, obviously a few downsides of selling through the dark pools. Now this is going to happen if you sell on robin hood, because obviously robin hood sell their order photo citadel and citadel will just put the trade through their dark pool. Now the first main downside is that you're going to have a delayed execution. That may mean that you don't get the price that you're wanting to sell at and you may potentially miss the very tippy top of the squeeze citadel may delay your order and it may not go through instantaneously and you may end up not getting the price you Want now, obviously, if you are selling through these brokers, like weeble and robin hood, you are going to be selling dark effectively.

Selling to citadel citadel can internalize your order. Take the other side of it and therefore you're selling your shares during the squeeze directly to citadel, to enable them to cover their short position now. I think, if anything it'd be better to sell through the lit exchanges. To avoid this point entirely, you could end up selling your shares to another ape or you could end up selling your shares to somebody else, fomoing into amc during the squeeze not allowing citadel to buy your shares and effectively not allowing them to cover, even still, obviously, If citadel still can't buy your shares, because you're selling to somebody else fomoing into amc, they obviously can't buy any shares to cover their shorts and they'll still continue to be squeezed and the price will continue to run higher.

So therefore, you effectively have the choice to sell in the dark pool directly to citadel or selling the lit markets and potentially sell to another ape or to somebody else fomoing into amc that isn't a short hedge fund. Now, on top of that, if your sold shares do end up being internalized and end up going off, exchange then obviously forms part of a private transaction which does an impact on the amc price. Now, if there's a hedge fund, that's being liquidated that is trying to buy up tons and tons of shares and you sell into their liquidation. It's effectively going to push the price of amc up even higher.

But if your transaction ends up going off, exchange and forms part of a private transaction that doesn't impact the amc price and doesn't push the price of amc up, you may say tom doesn't selling, usually push the price down because you're exerting selling pressure - and that will Depend on where the buy order that's buying. Your shares is actually placed, obviously, if you're selling your shares into an existing buy order below the current market price. Yes, it pushes the price down, but obviously, if you have a limit order set above the current price and a hedge fund buys your shares, it effectively pushes the price up to your new higher price and that's the main difference between selling, dark and selling a lit. If you're selling dark you're effectively going to sell to the buyers price and it's effectively tough luck as to what price you end up receiving for your sold shares.

And if you didn't already know, moomoo do not accept payment for order flow. Mumu, don't clear their trades through apex brokers, which is the clearinghouse used by robin hood weeble and many others. Mimo have their own clearinghouse, futo incorporated, which does not accept payment for order flow and therefore moomoo is brilliant for buying your amc shares and right now you can currently get five free stocks worth up to two thousand five hundred dollars each, which is a total of Up to twelve thousand five hundred dollars in free stocks, just for signing up with moomoo, using the link of the description below, obviously, if you're selling a lit and you're using a limit order, you can set your limit order above the current market price of amc that Sale will be reported and it will impact the price of amc and it will push the price of amc up to your sell order, which was higher than the current market price when it ends up being triggered or when your shares are brought. Therefore, you're effectively guaranteed to get the nbbo, which is the national best bidder offer.

Obviously, if a hedge fund is buying your shares at whatever price you set, then you can be happy with the price you receive, but if your sale order ends up going off exchange and you effectively just fill a buyer's buy order, then it's effectively tough, like what Price you receive because the buyer is setting the price, not the seller and therefore it's important to sell through the exchanges. And if you do still have your shares in robin hood and weeble, you could effectively be self-sabotaging yourself by selling into these dark pools and potentially risking your trade being internalized sold to citadel or ending up going off exchange. When you sell through lit, you can effectively guarantee the price that you receive by setting a limit order and selling through the lit markets where the transaction is reported and where it actually impacts on the price. And i think that leads me on quite nicely to the second part, which is: should you use a market, sell order, a limit, sell order or maybe even a trailing stop now all of these different types of orders do have their own advantages and they do have Their own disadvantages, obviously the advantage to a market sale order is the fact that it's very fast to execute you don't really have to think too much and you're guaranteed to sell your shares, but the main downside to a market sell order is the fact that it's Very very risky, obviously, a market sell order effectively fills the highest available, buy order.

That's currently in the system, therefore, you're guaranteed to get a fill and you're guaranteed to sell your shares, but the highest available buy order could be lower than the current price and it could actually be significantly lower than the current price during these big liquidations. I imagine the entire amc order book will effectively end up being emptied. What i mean by that is say that right now, there's 5 000 sell orders for amc currently entered into the market for everybody that has set limit orders at the moment. Obviously, most people are restricted in the limit orders that they can set and therefore haven't actually yet set their limit orders, but i'm sure some people do have some early initial limit sales at the 200 300, maybe even 400 price range.

Now, when a large hedge fund ends up being liquidated, it's effectively going to fill up all of these 5000 sell orders and effectively will buy every single share of amc. That's currently listed for sale, let's say, for example, that that pushes the price of amc all the way up to five hundred dollars per share, you might then set a market sell order expecting to sell your shares at five hundred dollars per share, but the next available Buyer may only have their buy orders set of one hundred dollars per share. Therefore, even though the current price says 500 per share, you're going to be filling that highest available buy order all the way down 100 per share. Not only are you going to be very disappointed when you sell your shares because you're only going to receive 100 per share and not 500 per share, but it's also going to cause the price of amc to drop because you're selling your shares a hundred dollars per Share that effectively then makes the market price of amc or the nbbo of amc 100 per share and therefore on the chart it will fall back to 100.

I think it's important to remember that. Don't forget, we are very much playing the hedges game or we're very much playing the game of the sec and we're playing the game of all stream. Therefore, by setting market sell orders, we aren't going to win and we aren't going to get the maximum price for our amc shares that we possibly can and therefore, i think it's very important to be placing limit orders instead of market orders to ensure that you can Guarantee your sale price now, obviously, the main downside to limit orders is that it doesn't necessarily guarantee that your shares will actually be sold. For example, let's say your final price bracket for amc is a hundred and five thousand dollars per share, but during the amc squeeze it only runs up to a hundred thousand dollars per share.

You have your limit order set, but it doesn't get triggered because the price doesn't run over your limit trigger. Obviously, if you place your sale limit orders beyond the very tippy top of the squeeze, they won't be executed and your shares won't be sold. However, when placing your limit orders, if the price does run over your limit trigger, then obviously your sell order will be triggered and your shares will be sold for the price that you want effectively. The main difference between a market order and a limit order is that with a market order, you're selling into their buy order, but obviously with a limit order.

They have to come and buy your sell order. You can obviously set your limit price higher than the current price of amc and when amc runs and triggers your sale, your shares will be sold at the price. You won, however, when placing a market order you're effectively selling down into their buy orders below the current price and you're not going to get the price that you want. Not only will you not get the price that you want, you may end up being severely disappointed and receive a much much much lower price than you actually want it.

Now you could also set a trailing, stop or a trailing stop loss, but it's very very important that you have to specify which kind of trailing stop that you want from investopedia. A trailing stop is an order type designed to lock in profits or limit losses. As a trade moves favorably but importantly, a trailing stop is a stop order and has the additional option of being a limit order or a market order now effectively, depending on what kind of order your trailing stop is. If your trailing stop is triggered, then it may end up market selling your shares at the current price when the sale is triggered.

Now, for example, you may set that trailing stop at five hundred dollars per share. It may trail all the way up to a thousand dollars per share when the price of amc then starts to fall, triggering your stop, but if it then market sells your shares when the stop is triggered, your shares may end up being sold for only 200 per Share or even less it depends where that highest available, buy order, actually is, if your broker doesn't allow you to specify what kind of trailing stop to set, whether you can't specify between a trailing stop loss limit or a trading stop-loss market, then it's obviously better. Just to use this limit order, however, if you can specify between a market order and a limit order for your trading stop loss, then it may be very advantageous to use that trailing stop, but i think it also very much depends on the speed at which amc Is moving when your trailing stop is actually triggered, for example, if your stop trails all the way up to a thousand dollars per share, then the price of amc full setting your limit sell order at 900 per share, which is obviously yes lower than the current price. But if the price of amc falls really rapidly and falls through 900 per share and below, then your sell order may not end up being filled and your shares may not actually sell.

This is why i personally think it's very important to set multiple different price brackets for your sell orders and to use limit, sell orders in each of those brackets. That way, you can be certain that you will sell your shares when your brackets are hit, and you will sell your shares for the price that you want it. Yes, some of your higher brackets at ten thousand dollars per share. A hundred thousand dollars per share, or a million dollars per share, may not end up being triggered and may not end up selling.

But at least your lower brackets will be guaranteed to be sold at your desired guaranteed price. I think it's important to have a plan for the squeeze and not to panic during the squeeze and end up using tons and tons of market sell orders, because, obviously, if you use these market sales, you're not guaranteed to get the price you want. And you may end up receiving a price significantly below the current price for amc, depending on when that highest available, buy order is actually placed, as i said earlier in the video it's important to remember that we are playing their game. We're not the dictators here, we're playing against wall street and therefore it's important to have a plan and to have your sell orders set.

As i said, the last thing you want to do is end up being caught without your sell order set or without knowing, where to place. Your sell orders and you end up panicking, trying to set tons of market, sell orders and you just end up being screwed. So guys be sure to, let me know what you think down in the comments below and also be sure to ding that notification bell, because that way, you'll be alerted. When i put a new video cheers:.

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