Short selling is an attractive trading strategy for many traders! However, if you’re unfamiliar with this strategy, you may not realize the roadblocks that come with shorting stocks.
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Before traders can short a stock, a company or insiders must agree to loan their shares out to brokerages. Many companies that own these low priced stocks aren’t willing to loan them out, which limits the number of available shares to short.
Another issue is that these ‘borrows’ vary broker to broker. For example, if you see other traders taking profits from shorting a stock and you want to short that stock as well - it’s not guaranteed that your broker has shares to loan you. Some traders can get past this roadblock by opening multiple brokerage accounts, but it can be difficult to gather the funds to open more accounts.
The shorting strategy is gaining popularity, but it’s becoming very difficult to short low priced stocks when they’re in high demand. Remember, learn the fundamentals, learn the basics of breaking down a chart, interpreting the news, and making a good trade plan.
#StocksToTrade #ShortSelling #TraderTips
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
🔴 Subscribe for more free Stock Trading tips: YouTube.com/StocksToTrade
Share this video with a fellow Trader: https://youtu.be/pKTTGa53hgI
✅ Links we mention and recommend:
Try StocksToTrade for 14 Days for $7: https://stockstotrade.com/7daytrial/
Get our FREE weekly watchlist here: https://stockstotrade.com/watchlist
Check out the SteadyTrade podcast: https://steadytrade.com
✅ Recommended video: https://youtu.be/pKTTGa53hgI
✅ Recommended playlists:
Stock Trading 101: A Day Trader's Guide: https://www.youtube.com/watch?v=G_v3GMkKCjk&list=PLWWz2BSabm3bG64ohfJ-CnnVTjLCWwvei
Advanced Stock Trading Tips: https://www.youtube.com/watch?v=OXLs_-PgMUk&list=PLWWz2BSabm3YCZdk7ocrBXGJaLVXXFUYb
StocksToTrade Software Tips and Tricks: https://www.youtube.com/watch?v=jiTi-chHNyo&list=PLWWz2BSabm3ay_lvQC9JN_1niB78bI7ga
Weekly Trading Recap Videos: https://www.youtube.com/watch?v=_n0XaDt1XFY&list=PLWWz2BSabm3b3-4DcEx98TzNPLAKcq6ES
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Before traders can short a stock, a company or insiders must agree to loan their shares out to brokerages. Many companies that own these low priced stocks aren’t willing to loan them out, which limits the number of available shares to short.
Another issue is that these ‘borrows’ vary broker to broker. For example, if you see other traders taking profits from shorting a stock and you want to short that stock as well - it’s not guaranteed that your broker has shares to loan you. Some traders can get past this roadblock by opening multiple brokerage accounts, but it can be difficult to gather the funds to open more accounts.
The shorting strategy is gaining popularity, but it’s becoming very difficult to short low priced stocks when they’re in high demand. Remember, learn the fundamentals, learn the basics of breaking down a chart, interpreting the news, and making a good trade plan.
#StocksToTrade #ShortSelling #TraderTips
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
no 1: Cobra trading is the way out of the first problem of this video.
no2: Shorting is always better than longing. Stick with shorting. That is how you make the money in trading these crazy worthless penny stocks
Its part of my strategy and I find at least 2-5 stocks a day that I want to short and most of the time I either cant find borrows or the the borrow fees are multiple hundred percent
Great video and amazing info. I got inspired by the whole short selling bandwagon and opened a TDA TOS account to trade on paper money, only to realize that i could not make 90% of plays in the small caps because most of the stocks are HTB (hard to borrow ) from the broker. Thank you for a very to the point explanation
Great video 👍
never tried to short. studying at present.
I think anyone shorting penny stock has run into that, I'm mostly watching for shorts but end up going long in the end, moreover just because that what the stock wants to do, doesn't always work but it works for me, for now
I can never get borrows on in play penny stocks, I can always get them on higher priced ones though so I only short those. It's actually helped me stop going for the home runs every time so it's fine.
Spot on!
Have you ever tried to short a stock and not able to get a borrow? Comment below, it's something many of us deal with all the time. Have you ever found that ideal setup and been unable to get a borrow?