TommyBryson's video: How to make fast money shorting the stock market

The first book I ever read on the stock market was this one, I was 19 I think, and it just happened to be the best book ever created in history. And since I didn’t have a mentor, I started following the best to ever do it, which was and still is Warren Buffet. 💲1 on 1 Talk + My Budget + Stock Investments💲 https://www.patreon.com/tommybryson 💰MY M1 FINANCE PORTFOLIO💰 PLUS $10 Link: https://m1.finance/fQsrul1PZcHM 1. Let's establish what shorten a stock is and how it works - And yes its true anyone can do this - because the broker wants to make money - so why would they stock you from doing it How it works: - Shorten a share, is basically when the broker lends you the shares of someone else, with the understanding that you will replace them later - Now here is the big deal, your goal is to grab those shares and sell them immediately - And then if the stock goes down you buy it at discount, give them back to a broker ( and you keep the difference ) Now for all my visual Learners: - I have 100 shares of Samsung stock, that are worth $100 per share in the open market - My broker lends them to you, and you sell them immediately ( you just made $10,000) but you still owe the broker 100 shares of Samsung - Now turns out the new Samsung phone was catching fire on airplanes, so the stock price crashed by 50% - Meaning I can now rebuy those shares for $5000, pay the broker and keep a profit of $5000. ( that sounds awesome ) However: - In this example, I told you about something I haven’t seen anyone do correctly over a long period of time, and that predicts the future - And that also makes a lot of money very quickly, now this was lucky not because of skill. - Lets the opposite happens, the stock goes up to 150, well you have to cover the difference and you lose money ( but you know who doesn’t ) Answer: - The broker doesn’t lose money - Because they charge you interest - And if you don’t cover the margin call they take it all way. - And remember a stock can go up forever, so you holding on can mean a lot of money being gone. Overall: shorten a stock is insanely risky, and usually you need millions of or hundreds of thousands of dollars to make money. Because that example of 50% does not often happen. ( and most of the people playing this game lose because it's mostly luck ) 2. Your real Job as an investor - You just need to do three things and that’s it if you want to invest like I do - Or how warren buffer invest Three things: - Analyze the business, not the stock chart and all the nonsense ( you need to if the business is actually good or not ) - Protect yourself from losing money ( rule 1 don’t lose money and rule 2 don’t forget rule 1 – you do this by buying with a margin of safety ) - Reach for good performance not extreme performance with risky stuff obviously: - This is very hard to do and it takes months of research - But it looks easier to just do what you heard a guy youtube said he did - I made a bunch of money, really quickly and I didn’t do any research Here is a great example: - A car going 100 miles per hour and getting there 56minutess - While you go at the speed limit and get there in 1 hour and 43 minutes - Now if you do this ones and get their, does it mean it’s the right way ( the answer is obviously ) - Because the risk aside from a ticket Is De$$h, so an investor takes precautions to get their safe - In the end compound interest, and not having massive loss will equal a ton of money ( warren never bought anything he didn’t understand no matter what people were saying ) * PRO TIP* INFORMATION IS EVERYTHING 👕Merch👕 https://teespring.com/stores/tommybryson ✅2 FREE AUDIOBOOKS✅ https://amzn.to/2Enayo8¬¬¬ 💰M1 FINANCE $10💰 Link: https://m1.finance/fQsrul1PZcHM 🎁ACORN FREE $5🎁 Link: https://acorns.com/invite/38EYSU ⚡FREE KINDLE UNLIMITED⚡ (traditional reading) Link: https://amzn.to/2VGbxt9 👨🏽‍💻DISCORD PRIVATE GROUP👨🏽‍💻 https://discord.gg/EcZEHpA My Camera Gear: https://www.amazon.com/shop/tommybryson ✔ Help Us Reach 500,000 Subscribers: https://goo.gl/0wvm6w 😎All My Social Media😎 Link: https://linktr.ee/tommybryson *Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.