Trading 101: What is a 'Short Squeeze'?

The stock market is a crazy place where money can be made no matter what happens. How so? Due to a trading and investing strategy known as "going short", you can literally make money from a stock price going down in value. While the stock market is very expansive in all the opportunities it can give you, it can also be a very risky place where large amounts of money can be lost. In the world of "shorting stocks" and "going short", you must be aware of and avoid what is known as a "short squeeze". Perhaps you've heard this term, but if you are a beginner in the stock market and just getting started, it would be normal for you to have no idea what it means. Let me show you how a short squeeze works and what causes it (and continues to cause it). Learning how to trade and invest means understanding the risks involved and this is definitely a risk you need to be aware of.

[smash]

he explained like we’re kindergarten students that much easy to understand man love you

[joespinosa]

I study finance at a top 40 university, and this is explained much better than anything I've heard in a classroom

[mu]

I typed in the search bar in youtube " What is short squueze " and the page shows tons of video but i click on clay trader because he explains like explaining to a 5 year old and thats how its suppose to be explained.
Thanks man...

[Dreadlock]

Who else is here tryna figure out what’s going on with this whole game stop thing

[colemccoy]

Came here to learn about why my GME calls are about to print, thanks bro. GME is 140% short float rn, about to be pumped

[mclark]

Thanks for explaining this the way you did. Helped me understand what happened with GME and AMC.

[hoodieyearround]

6 minutes into the video and my mind is blown, he cleared up so much that has been confusing me as a new investor that bought a ton of AMC.

I now know what everyone means when they say we have to wait for the shorts to cover and such. Thanks man

[healthychocolatenews]

Yeah. The best communicator I have heard explain shorting in less words than others. He is great!

[ktmzombieryder]

I was a part of tsla history last month, my calls went from .15 to $40, what a wild ride.

[DaddyFutbol]

Thank goodness this video exists to understand Gamestop, AMC, Nokia thing going on

[ajbrown]

Thank you for explaining. I'm kind of dumb. Had to go watch your "What is a short" video and then come back to this one. Good info for a dummy like me.

[brianrachmat]

I finally understand "short squeeze" Thank you.

[timothymark]

Hi Clay.
Did a search on Short Squeeze after seeing it mentioned on an episode of Billions and knew that your video would've explained it best.
Thanks heaps for explaining it in simple English.
We really appreciate the fact that you take time to break it down to the very basic understanding, enabling newbies to get a clearer picture of what's going on.
Hope you and family are keeping well during this period.

Regards from Malaysia.

[pabloaguila]

Easy to understand. You have charisma, a sense of humor, and clarity. Thanks.

[nailcarter]

Honestly I really do like how hard you work thank you for taking the time out to make these great videos!!!

[Jessica]

This is the best explanation you explain in a very easy way thank you clay

[tinly]

I was watching to learn what a short squeeze is, and I ended up learning that “short squeeze people buy, u buy, I buy, every body buys...” and the price just keep going up until this video ends, It still go up

[iAmTQH]

Awesome explanation. Love the old school visual aid, on the blackboard and chalks. Thanks bruh!

[e.davidjohnson]

Love your basic and simple explanation in trading. Keep them coming, thanks.

[cgiron]

Thank you. A little more explanation on how shorts buy was needed. The idea of "borrowing a stock" and pay later at expected cheaper price.