Welcome to my deep dive on a trading strategy that I believe is one of the riskiest in the financial world: short selling. In this video, I'll explain exactly what short selling is and, more importantly, why I personally avoid it. Using the iconic GameStop (GME) saga as our primary case study, we'll unpack the incredible risks and devastating consequences of betting against a stock.

You'll get an in-depth look at what led to the GME short squeeze, a historic event where a collective of retail investors from Reddit's r/wallstreetbets forum sent the stock price soaring, creating a perfect storm for institutional short sellers. I'll break down the mechanics of a short squeeze and show how it creates theoretically unlimited losses for those on the wrong side of the trade.

The GameStop event wasn't just a win for the little guy; it was a catastrophic loss for some of the biggest players on Wall Street. We'll explore how prominent hedge funds, like Melvin Capital, lost billions of dollars and were forced to shut down or seek multi-billion dollar bailouts from other firms to stay afloat. This story serves as a powerful cautionary tale about the unpredictable nature of the market and the inherent dangers of short selling.

This video is for anyone who wants to understand the full picture of short selling—the potential rewards, but more importantly, the extreme, portfolio-shattering risks.

My Udemy value investment course:
www.udemy.com/course/how-to-invest-in-stocks-like-…


Disclaimer

The information provided is for general informational purposes only and is not intended as specific investment advice. All opinions, analyses, and information shared are based on current market conditions and are subject to change without notice. Past performance is not indicative of future results.

Investing involves risks, including the potential loss of principal. It is important to carefully consider your objectives, risk tolerance, and time horizon before making any investment decisions. Please consult with a financial professional or conduct your own research before acting on any investment strategies or recommendations provided.

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