Invest With Sarge: A Short Lesson on Shorting Stocks
Invest With Sarge: A Short Lesson on Shorting Stocks
Jul 24 08:00
Dear mooers, Sarge is back again to our live-streaming event. This time, we will talk about “shorting” or “selling stocks short”.![]()
[Stephen's Full Bio] Stephen "Sarge" Guilfoyle is the founder and President of Sarge986 LLC, a family-run trading operation. An NYSE floor trader for over 30 years, Guilfoyle has served as the Chief Market Economist for Stuart Frankel & Co., the U.S. Economist for Meridian Equity Partners, and as a Vice President in Block Trading and Investment Banking with Credit Suisse over the years. Guilfoyle earned his nickname "Sarge" while serving as an actual sergeant in reserve components of the U.S. Marine Corps and U.S. Army while simultaneously working on Wall Street. He self-identifies as a day trader, long-term investor, and anything. He believes in removing emotion from the decision-making process and trusting the data. Follow Stephen “Sarge” Guilfoyle on the moomoo community for a mix of fundamentals, technical analysis, economic commentary, and trading ideas.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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mr_cashcow : Hello Sarge, it is great to pick your brains again![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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I did sort of understand some concept of it from watching the movie dumb money about short squeeze![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Personally I have never tried shorting stocks as I find it to be really risky
So my question is what are the potential risks & benefits of short selling? And does the reward/benefits outweighs the risks involved?
ZnWC : Thanks for the insight sharing about stocks![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Here are my questions:
1) How do you use the short interest and short volume to decide if the stock is overbought or not?
2) Is short selling bad for the company and the shareholders? Why?
3) What are the pros and cons in short selling?
102362254 : Question 1 - Can short selling be used as a hedging strategy against other investments?
Question 2 - What are the differences between short selling stocks and buying put options as strategies for profiting from price declines?
Wonder : Is shorting a strategy during earning seasons when company is not expected to do well? What if the reverse happens; do traders protect their position with call options?
doctorpot1 : Why not simply buy a PUT option to short the stock? It's less risky since it protects against market gap-ups and counterparty risk when stops fail, while offering a similar payout. what am I missing?
Dadacai : Hi Sarge, what are the signs that there will be a short squeeze for a particular stock?
puddy1 : Hi Sarge, short selling impact overall market sentiment giving bearish signal, what factors to consider before short sell? what protective strategy can one adopt to avoid short squeeze?
Scott Pierce72 : hello, I was wondering, how do you find a good stock to short? where do you research to find one? is this anything like day trading?
ilovesoya : What is consider a good risk to reward ratio for shorting stocks?
103776912 : What's the difference between shorting a stock and options?
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