today in this video I'm going to be taking you through live Short Selling to show you exactly
how to do this step by step using the Webull app now this past week I did a video on how I made
139 dollars with minutes of work short selling stocks and when I did that video I got a lot
of comments saying hey can you actually show us how to do this step by step using Webull and I
thought well yes that's what this video is all about now I'm going to show you how to do this
both in the desktop version of Webull as well as the iPhone app version of Webull that way
depending on what you like to use for your Webull brokerage experience you can use either one it
doesn't matter I'm gonna show you both of them now I gotta start by saying that shooting stocks is
very dangerous because it could potentially have a significant loss potential to you so none of this
today is financial advice and you got to make sure you judge your own risk level your tolerance level
and make sure that you seek financial help if you need any this is all on you I'm just sharing with
you for your education purposes only if you're not too sure what shorting stocks is and how I
made that 139 dollars I do do recommend you check out the video right above in the info card before
you check out this one so pause this one go hop over to that one watch that one and then come on
back here that way you can make sure that you have everything you need when it comes down to shorting
stocks now there's a lot of different ways you can make money in the stock market you can buy
and hold you can sell and trade options you can buy dividend stocks you can you can day trade if
you want to and you can short stocks now I've been using Webull for about two years now I absolutely
love it in fact I've done a lot of beginner videos and tutorials on Webull and you can check out that
entire playlist link down in the description below so let's get right to it we're going to dive into
the desktop version first now I'm gonna be honest with you I am a very conservative investor and
it's kind of funny to say that when we're talking about shorting stocks but when it comes down to a
conservative investor that's shorting stocks you know I'm not going to be trying to pick
up thousands and millions of dollars overnight I'm going to take it very slow I'm gonna have a
very specific strategy and I'm going to exit out immediately if I need to if I start lose using
money so it's very important that you do that if we look right here here's our Webull desktop
and there's a couple things we can look at here of course I'm going to use for the purpose of
today's video we're going to short tqq the reason for it is as of today this particular day we have
some news in the market that I've been trending and watching and I have a thesis that this could
potentially drop down a little bit maybe not a lot but a little bit that I could maybe pick up maybe
10 or 20 dollars but again this is for seconds or minutes of work I already did my research and I'm
ready to execute my trade so there's a couple things we should look at first you can see the
candlesticks that I have set up on the Webull desktop there we are you got 20 51 is the going
price right now at the top right hand side for tqq and you can see three different options buy
sell or short now if you just got started with the Webull brokerage app these three options
may not be available to you yet now in order to start short selling on Webull and having that
button available you need minimum of two thousand dollars of equity in your account to get started
if you don't have that at a minimum or more then you would not be eligible for short selling now
what we need to do for this particular example is we want to click on the short which is the orange
button in the desktop you'll see the same thing in the app it's also orange now I do always recommend
to choose a limit order don't choose a market order choose a limit order because if the price
is going up and down drastically you don't want to all of a sudden get caught on a downtrend or an
uptrend that could cost you a lot of money so what I do is I set a limit price and for that limit
price we can see right now we're at twenty dollars and fifty three cents so I'm going to set that
limit price to let's say twenty dollars and fifty cents I'm going to let it kind of go up and down
but the goal would be Webull will not execute this trade until we hit twenty dollars and fifty cents
once it does it will then purchase a total of ten in fact you can see right here the estimated
amount for 10 shares is 205 dollars I'm gonna bump that up to 100 shares my goal is to short
100 shares and this would be for a total of two thousand and fifty dollars now I have that cash
available I'm not trading on margin I am trading with the cash I have in my account so anyway I got
my two thousand dollars gonna short a hundred I all I have to do is just hit this button this is
gonna pop up it's a confirmation screen to make sure you know what you're doing here it is so we
got 100 shares tqq order type 2050 in the day that means it's not going to be extended hours we're
only going to trade this in the day uh and then the amount I am going to short is two thousand
fifty dollars now because I'm shorting this amount what's going to happen is I'm going to immediately
get two thousand and fifty dollars into my account it's gonna look kind of exciting like something
good is happening like I made money but remember that's not the case you're borrowing their shares
from The Brokerage and because I have that cash in my account if it does go negative and I gotta
close my position and take a loss I will still be okay because I have enough cash in my account
in my account to cover the loss now of course I do stop limits I don't let it just go down down
down and all of a sudden I'm negative like twenty thousand dollars or something like that you got to
be very cautious with yourself especially when shorting not to go too crazy with it so I'll
explain all that as we go through here so here's what we got we're waiting for it to hit the 2050
Mark and once it does it's going to execute the trade it'll signify their gears it just executed
the trade here we are 2050 you can see there's the p l we're making like a dollar and then we're
losing a dollar there's three dollars and what we're going to do is we're going to let this kind
of settle there's a couple things you can do at this point and one thing I would recommend is you
look at the options of buying back the shares now remember you shorted which means your negative 100
shares in order to close this position out and make money hopefully make money is to buy back
the shares you bought at twenty dollars and fifty six cents your hope is that it's less than that
when you buy back the shares that way you can give your 100 shares back to Webull and pocket the diff
so in this case let's say you bought 100 shares at twenty dollars and fifty cents it drops to
19.50 you would actually make one hundred dollars because at that point you could give back to 100
shares and the difference between that is a hundred dollars that you could earn based
on shorting the stock but if it goes higher than 2050 you've got to make a hard decision
that's where I recommend always having a stop loss there's only certain periods of threshold
that I want to lose money and I don't want to lose an unlimited amount of money because let's
say all of a sudden tqq just breaks out and it goes from 2050 to like 30 50 50. 150. unlikely
but it could if it does go in like moons today as we're shorting we're screwed that's actually what
happened if you heard the uh stuff about AMC back in January of 2021 they had all these hedge funds
that had thousands and millions of dollars tied up in AMC shorts and because everybody was buying
in pushing up the price they got nervous and they had to basically sell it a loss when they do that
it continues to push that price higher so be very cautious and set yourself on a stop limit could
be you know maybe I don't want to lose more than a hundred dollars or maybe I don't want to lose more
than two hundred dollars so what I would do is I would put a stop loss at in this case because I
have 100 shares 22.50 if it hits 22.50 or more sell that thing immediately I'll lose 200 and
I'll say dang it I didn't do this one right let me analyze why this happened because my thesis
was It was supposed to drop why did it go up today something's wrong and then evaluate that and get
back into the game but always have a strategy don't trade as if you're in a casino this isn't
about making money quickly it's about being a smart investor and really looking at what is
actually happening in the market coming up with a thesis and then performing on that thesis or
on that strategy and by the way if you don't have weibo yet they do offer you free stocks
when you sign up and get started now this is a commission free brokerage it's absolutely easy
to use and it's easy for beginners all the way up to Advanced Traders so you can start off with a
beginner end and scare yourself up as you learn and grow with your investing experience so it's
linked down in the description below check it out and get started today now while we uh wait
for our money to go up and down and see what actually ends up happening here let's take a
look at the app shorting stocks in the weibo app is very similar all we have to do is go over to
the search bar and we're going to do the same thing tqq and we're going to click on here now
what you would want to do is you want to click at the very bottom where it says trade we click on
that and that's going to take us over here to the options very similar to the desktop it's almost
kind of identical just doesn't have as much of a wider screen because obviously it's a phone but
all you want to do is hop over here to where it says short click on short and again my tip always
use limit order because if it's going crazy you don't want the market to screw you up so let's
say we do a limit and we're going to do the same thing 2050 we'll do 100 shares and then you can
decide are you going to do the regular hours of the stock market or extend it hours also I warn
you extended hours could be a little bit dicey there's not a lot of volume and extended hours
to know what you're doing if you're just starting off and you're super new I would do regular hours
but again you got to judge your own risk this is all on you so you can see the same thing as
we saw over on the desktop we have an estimated amount of 20 of 2050 and that's kind of what we
have and it's 100 shares at 2050 and then what you could do is hit the short button that same
thing is going to happen where it pops up and gives you a confirmation screen and then you
hit confirm and then you would have your short if your limit price is hit of course if it all of a
sudden is going volatile it may not actually fill the order that's another important thing if you
got like twenty dollars and fifty cents and let's say all of a sudden it's like going fluctuating it
went up to like 21 now it's back down to 1950 and it's going crazy it may not immediately fill your
order until you have a good solid limit price of 2050 where it can then execute that order in our
case today we were successful with doing that but again it's the same thing either way either way on
the desktop or on the app very very similar now as we wait for our hopeful profitable buyback we want
to talk a little bit about the feed and it's very very important to know that if you hold that short
position overnight after the market closes at 4 pm Eastern every day you're going to be charged
in interest rate now I'm going to post this at the bottom in the description below so you can
hop over to this particular link but this is the financial fee schedule for Webull now remember
they have zero dollar commissions but there are some fees for being in a margin position so
depending on how much you're trading it could be as of the recording this video anywhere from 3.99
if you're trading three million dollars uh down up to 6.99 if you're trading up to 25 000 in my
case yeah if I was trading on margin for this it'd be 6.99 but as long as you close your position in
the same day and you don't hold it overnight you will not be charged an interest rate you're just
using leverage from your margin account on Webull so just keep that in mind uh you know the other
tricky thing with short selling is it comes with an additional rate so even though this is a margin
rate just for normal stock trading if you look down here there's a short selling fee you need
to borrow shares of stock of a company before you sell them the cost associated with the short
sale is the fee for borrowing the stocks of said company the stock loan rate changes on a daily
basis based on Market condition just as interest on margin trading it is calculated on a daily
basis and charged daily so it's important that you don't hold it overnight but here's the deal
I'll share with you one example hard to borrow stocks are going to cost a lot of money so let
me share an example over here on the weibo app we're going to type in ape that's the amp that
is the AMC entertainment preferred Holdings now if we hit trade and we try to short sell you're
going to see an immediate little Banner at the bottom this security is not labeled as easy to
borrow it is a hard to borrow stock Please be aware that the marginal interest rate is 3.70
and may vary widely depending on the volatility and availability of the stock so if I click learn
more it'll give you a little bit more of those details so with the not easy to borrow stocks
you got to be very careful I've seen that as high as 8.4 percent actually I might have seen a nine
percent one day be very careful about certain type of stocks that you're shorting make sure you're
doing your research that is the most important thing you could possibly do in order to not get
put in some type of trap where you're spending so much money and then God forbid you lose money on
the do2 you're just gonna be like really really sad I don't want to see that so let's hop back
over the desktop let's see how this thing is going we can see right now we're in profit
of about 23 dollars you see that right there not too bad actually now you have a decision to make
do you want to continue to hold it is your thesis going to hold up that it'll continue to drop and
maybe make you a hundred dollars if it drops in 1950 or are you happy with making about 19
twenty twenty five dollars so in this case because I'm recording this video I actually am going to
execute this particular trade so you can see what actually happens here so what we want to do is we
want to buy back the shares don't sell them don't show it more you need to buy them back and we're
going to then pocket the difference the difference being right now we see it right around 18 or 17
dollars but that's what would be put into our pocket so let's go ahead and get this rolling by
setting at a limit price so that way we can take advantage of as much profit as possible so I in
this case I'm going to set a limit price of 20.26 grab a little bit of profit and uh right there
it is there's our confirmation screen hit buy and then you can see right up here there's buy 100 at
the limit price of 2026. that'll be exciting let's see if it gets that right now we're at 2034 if it
drops down to that 2026 we'll execute the trade and have some profit to talk about and I have
some great news we executed on that limit order so here we are let's look at the screens right
here in the app the very first one is here's our original Short 100 shares at twenty dollars and
fifty cents as we looked at a little bit earlier and then here is our buy just a little bit later
so obviously we've been trading on this let's see from 942 to 10 42 almost exactly an hour we held
this particular stock so in an hour's time made a profit of a total of 23.94 in this particular deal
so you know it's not bad it's not a whole lot of money we're not sitting here saying we just made a
thousand dollars but you know twenty three dollars I'll take it but that's exactly how you short a
stock and Webull so what other questions do you have on the Webull brokerage app what do you want
to see next on this channel what about options comment down below and let me know what you
want to see next until next time check out this video next and we'll see you on the next video