One major term you have heard is "shorting" - which is just placing a bet that a stock will go down in price. #velshi
1/15
By now you have undoubtedly seen the craziness going on in the stock market, with a selection of stocks surging hundreds if not thousands of percent in a matter of days or even hours, along with a whole bunch of financial jargon. So what exactly is going on? #velshi
One major term you have heard is "shorting" - which is just placing a bet that a stock will go down in price. #velshi
An investor can make money on this type of gamble by borrowing shares from a broker, w/o initially paying for them, selling them immediately & then later buying the shares at a lower price & returning them to the broker, keeping the difference in price as profit. #velshi
For example, an investor borrows 1 share of stock XYZ at $200 & sells it. The investor now has $200 at an initial cost of $0. However, the investor stills owes the broker that 1 share. #velshi
The gamble is that the price of the stock XYZ will go down - let's say to $100 a share. The investor can then buy the 1 share that it owes the broker at that lower $100 price. #velshi
This means it costs the investor less to buy XYZ than what it has already sold XYZ for & the investor can keep that extra $100 difference from the $200 sale price. #velshi
Of course, the price of the stock could increase - and the investor still owes the broker the share XYZ, in which case the investor loses money. Potentially a LOT of money. #velshi
Using our example, let's say stock XYZ increases to $220 dollars. The investor still has to buy the owed share, but it now cost $20 more than it was initially sold for, and the investor loses that money. That's the basis for what has been going on. #velshi
What basically happened was within the last week or so some people on the Reddit 'WallStreetBets' noticed that some hedge funds were placing massive “short“ bets on several distressed widely known companies. #velshi
Short bets were placed mainly on Gamestop but also Bed Bath and Beyond, American Airlines, AMC Theaters, Blackberry, and others. #velshi
These redditers then essentially crowdsourced a whole bunch of people to bet AGAINST the hedge funds, buying shares at increasingly inflated prices in order to prevent the stock prices from going down. #velshi
As the price kept going up, some of the hedge funds were forced to start buying shares to replace the ones they had borrowed when they initially expected the stocks to drop in value, in order to cut their losses, in what is known as a 'short squeeze'. #velshi
And all that buying - that new demand - has the effect of dramatically increasing the price of the stocks. #velshi
There has also been a lot of talk & consternation that some brokerage & trading firms popular with newer traders, including one called 'Robinhood', cut off the average person's ability to trade in some of these volatile companies. #velshi
More from Ali Velshi
More from Trading
Option Trading is very difficult to master as there are so many things to understand.
Here is a master thread related that will help a beginner to understand about Options Trading.
A complete course worth Rs 50K for free.
1/ A detailed thread on basics of Option Greeks and how it impacts Options
2/ Basic Option Trading Strategies:
There are many option strategies to trade. But keeping your strategy simple is the key.
In this thread, all the basic option trading strategies are being
3/ What are the things that you should look at before taking any Option
4/ Is Option Selling Possible with Rs 1 Lakh Capital?
Even a beginner can start trading in option selling with capital as low as Rs 1 Lakh.
What are the techniques one can use and how to mitigate the infinite loss risk is shared in this
Here is a master thread related that will help a beginner to understand about Options Trading.
A complete course worth Rs 50K for free.
1/ A detailed thread on basics of Option Greeks and how it impacts Options
There are various Options Greeks like: Delta, Gamma, Vega, Rho, Theta.
— Yash Mehta (@YMehta_) September 4, 2022
A complete guide on how these #Option Greeks impact option price.
2/ Basic Option Trading Strategies:
There are many option strategies to trade. But keeping your strategy simple is the key.
In this thread, all the basic option trading strategies are being
Option trading is tough but here\u2019s what can make it easier for you
— The Chartians (@chartians) September 17, 2022
8 option strategies that you can use in any market (sold as a \u20b9 50,000 course !)
3/ What are the things that you should look at before taking any Option
They say options trading can make YOU BANKRUPT - is it true ?
— The Chartians (@chartians) September 23, 2022
If yes then why ?
A thread on Risk management and Position sizing in options trading (worth 50k\u20b9 course)\U0001f9f5
4/ Is Option Selling Possible with Rs 1 Lakh Capital?
Even a beginner can start trading in option selling with capital as low as Rs 1 Lakh.
What are the techniques one can use and how to mitigate the infinite loss risk is shared in this
101 guide on how you can start option selling to generate active returns with less capital (Rs 1 Lakh) \U0001f9f5:
— Yash Mehta (@YMehta_) August 19, 2022
A course on option selling available for free.
TradingView isn't just charts
It's much more powerful than you think
9 things TradingView can do, you'll wish you knew yesterday: 🧵
Collaborated with @niki_poojary
1/ Free Multi Timeframe Analysis
Step 1. Download Vivaldi Browser
Step 2. Login to trading view
Step 3. Open bank nifty chart in 4 separate windows
Step 4. Click on the first tab and shift + click by mouse on the last tab.
Step 5. Select "Tile all 4 tabs"
What happens is you get 4 charts joint on one screen.
Refer to the attached picture.
The best part about this is this is absolutely free to do.
Also, do note:
I do not have the paid version of trading view.
2/ Free Multiple Watchlists
Go through this informative thread where @sarosijghosh teaches you how to create multiple free watchlists in the free
3/ Free Segregation into different headers/sectors
You can create multiple sections sector-wise for free.
1. Long tap on any index/stock and click on "Add section above."
2. Secgregate the stocks/indices based on where they belong.
Kinda like how I did in the picture below.
It's much more powerful than you think
9 things TradingView can do, you'll wish you knew yesterday: 🧵
Collaborated with @niki_poojary
1/ Free Multi Timeframe Analysis
Step 1. Download Vivaldi Browser
Step 2. Login to trading view
Step 3. Open bank nifty chart in 4 separate windows
Step 4. Click on the first tab and shift + click by mouse on the last tab.
Step 5. Select "Tile all 4 tabs"
What happens is you get 4 charts joint on one screen.
Refer to the attached picture.
The best part about this is this is absolutely free to do.
Also, do note:
I do not have the paid version of trading view.
2/ Free Multiple Watchlists
Go through this informative thread where @sarosijghosh teaches you how to create multiple free watchlists in the free
\U0001d5e0\U0001d602\U0001d5f9\U0001d601\U0001d5f6\U0001d5fd\U0001d5f9\U0001d5f2 \U0001d600\U0001d5f2\U0001d5f0\U0001d601\U0001d5fc\U0001d5ff \U0001d604\U0001d5ee\U0001d601\U0001d5f0\U0001d5f5\U0001d5f9\U0001d5f6\U0001d600\U0001d601 \U0001d5fc\U0001d5fb \U0001d5e7\U0001d5ff\U0001d5ee\U0001d5f1\U0001d5f6\U0001d5fb\U0001d5f4\U0001d603\U0001d5f6\U0001d5f2\U0001d604 \U0001d602\U0001d600\U0001d5f6\U0001d5fb\U0001d5f4 \U0001d601\U0001d5f5\U0001d5f2 \U0001d5d9\U0001d5e5\U0001d5d8\U0001d5d8 \U0001d603\U0001d5f2\U0001d5ff\U0001d600\U0001d5f6\U0001d5fc\U0001d5fb!
— Sarosij Ghosh (@sarosijghosh) September 18, 2021
A THREAD \U0001f9f5
Please Like and Re-Tweet. It took a lot of effort to put this together. #StockMarket #TradingView #trading #watchlist #Nifty500 #stockstowatch
3/ Free Segregation into different headers/sectors
You can create multiple sections sector-wise for free.
1. Long tap on any index/stock and click on "Add section above."
2. Secgregate the stocks/indices based on where they belong.
Kinda like how I did in the picture below.
You May Also Like
1/ Here’s a list of conversational frameworks I’ve picked up that have been helpful.
Please add your own.
2/ The Magic Question: "What would need to be true for you
3/ On evaluating where someone’s head is at regarding a topic they are being wishy-washy about or delaying.
“Gun to the head—what would you decide now?”
“Fast forward 6 months after your sabbatical--how would you decide: what criteria is most important to you?”
4/ Other Q’s re: decisions:
“Putting aside a list of pros/cons, what’s the *one* reason you’re doing this?” “Why is that the most important reason?”
“What’s end-game here?”
“What does success look like in a world where you pick that path?”
5/ When listening, after empathizing, and wanting to help them make their own decisions without imposing your world view:
“What would the best version of yourself do”?
Please add your own.
2/ The Magic Question: "What would need to be true for you
1/\u201cWhat would need to be true for you to\u2026.X\u201d
— Erik Torenberg (@eriktorenberg) December 4, 2018
Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?
A thread, co-written by @deanmbrody: https://t.co/Yo6jHbSit9
3/ On evaluating where someone’s head is at regarding a topic they are being wishy-washy about or delaying.
“Gun to the head—what would you decide now?”
“Fast forward 6 months after your sabbatical--how would you decide: what criteria is most important to you?”
4/ Other Q’s re: decisions:
“Putting aside a list of pros/cons, what’s the *one* reason you’re doing this?” “Why is that the most important reason?”
“What’s end-game here?”
“What does success look like in a world where you pick that path?”
5/ When listening, after empathizing, and wanting to help them make their own decisions without imposing your world view:
“What would the best version of yourself do”?
