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Understanding Long and Short Terms in Stock Market Trading

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These terms are more efficient than terms like "buy" and "sell" because they tell your position--your mindset on a particular stock or on the industry. Long: -Positive on the market -You can also be "long" on a particular stock: If you are long Nike, you're expecting it to go up Short: -Negative on the market -You can also be "short" on a particular stock: If you are short Nike, you're expecting it to go down -Selling with the intention to buy the shares back at a lower price Benefits of using "Long"/"Short" vs. "Buy"/"Sell": -If you have 1,000 shares of Nike and you tell someone you sold 500 shares, they could assume you think Nike is going to go down even though you are still positive 500 shares. -If you think a certain stock will go down and you decide to sell all 1,000 shares and later purchase 300 shares, and you tell someone that you bought the 300 shares, it is not clear that you are still negative 700 shares. They may not understand that you think Nike will go down. -"Long" and "short" remove the ambiguity associated with the terms "buy" and "sell." ★ SUBSCRIBE TO MY YOUTUBE: ★ http://bit.ly/addtradersfly ★ ABOUT TRADERSFLY ★ TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing. Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better. Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us! STOCK TRADING COURSES: -- http://tradersfly.com/courses/ STOCK TRADING BOOKS: -- http://tradersfly.com/books/ WEBSITES: -- http://rise2learn.com -- http://criticalcharts.com -- http://investinghelpdesk.com -- http://tradersfly.com -- http://backstageincome.com -- http://sashaevdakov.com SOCIAL MEDIA: -- http://twitter.com/criticalcharts/ -- http://facebook.com/criticalcharts/ MY YOUTUBE CHANNELS: -- TradersFly: http://bit.ly/tradersfly -- BackstageIncome: http://bit.ly/backstageincome
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Text Comments (75)
Matt s (2 hours ago)
Surely if you sell to buy at a lower price you're making a loss?
bummbummsound (1 month ago)
FINALLY, Thanks!
nono li (2 months ago)
Very knowledgeable, how long have you been investing?
nono li (1 month ago)
+Sasha Evdakov: Tradersfly I respect your honesty. I just started, and between videos, books and classes I feel like information overload. So many ways to invest. Holding and dividends seem like the best option since I'm a beginner. I recently watched your dividend cut video. Thank you for the videos, keep up the good work. 🙂👍👍
A long time but I still make mistakes. Investing is not perfect
Alessia Aikley (2 months ago)
So basically this is just gambling.
If you care to categorize it that way, anything that's not a hundred percent is a Gamble
Rick Sanchez (2 months ago)
Right ear
Kevin Patel (3 months ago)
2:25 How can you sell something you don't own
Kevin Patel (3 months ago)
Sasha Evdakov Thank You Sir ✌️
Nicholas Peters (5 months ago)
Good video
fireflames (10 months ago)
thanks sir, i'm india
JE (1 year ago)
Thank you so much, I really had no idea that long and short trading is not literal, I thought that long means you wait for a long time and short means you wait for a short time, but now I know, thank you again, good job on your videos.
Trunks9000 (1 year ago)
Why would you wanna sell 500 shares and keep a million shares of one company (going long)? Why not just keep the 500 shares if you go for long?
Stephen Taylor (4 months ago)
For anyone scrolling through, my assumption would be if you're still expecting an upwards trend but the market is becoming increasingly volatile. Selling a portion of your stock to lower a potential loss. Though in your example (1000000 - 500) it would make such a little difference in the scheme of things, its pointless haha.
Candy Rain (1 year ago)
so long means sell and short means buy?
Devante Cylla (1 year ago)
awesome simple videos thank you
ChArLiE BeAtZ (2 years ago)
Sasha Evdakov I am 34, kind of a smart guy, when it comes to Etymology, History and Politics, but I never got into wanting to learn the Stock Market, until now. I just hated seeing all of the numbers and letters. I didn't know what it meant and didn't really wanna take time to learn. But watching these first 3 videos is so interesting. I now know a lot more, than before. I feel my brain growing and it seems fun. I just want to Thank You. I think this is going to be my new hobby. I am going to study all day and night, for days. Screw politics, we might get nuked, in 6 days. At least I'll die, knowing stocks weren't rigged; plus I'll learn something new. God Bless!!
ChArLiE BeAtZ (2 years ago)
+Sasha Evdakov I am pretty good with noticing volatility, thanks to you.
ChArLiE BeAtZ (2 years ago)
+Sasha Evdakov I definitely agree, my man!! I am learning a lot and I have a new phone app, to play with fake money, with real time stock changes.
Juan Morales (2 years ago)
keep up the great work, these videos are very helpful
Joe Leytrick (2 years ago)
thanks for making this easy to understand
Pwat (2 years ago)
Hi Sasha, Great videos! Do you know which Brokers are best for dealing with short-selling and Penny Stocks? I hear TD Ameritrade is good for this but not sure.
priti d (2 years ago)
thnx
Mickeyislowd (2 years ago)
I read many times about Long/ Short but it didn't make sense and made me think why not just say 'Buy/Sell'...Now I understand the point thanks to this video..Gracias:))
Double B'z (2 years ago)
i like all your videos...thank you for your shared knowledge
Hz Majestic (2 years ago)
Appreciate these videos, Keep them up!
Saoj1981 (2 years ago)
My question is, why would you sell if you're looking for it to go up (Long)?
Saoj1981 (2 years ago)
+Sasha Evdakov (TradersFly) so to better understand, do we Long high and Short downward?
Ueki Hunter (2 years ago)
Sir can i sell only portion of your stock and not the entire?
Rob (2 years ago)
hello, do you have any video about penny stocks ? thank you
Rob (2 years ago)
+Sasha Evdakov great, thank you
R.H. Shinn (2 years ago)
You are very helpful to people. You gave me a great amount of understanding which I didn't have!
jessy .walz (2 years ago)
i did understood short term, but i got a little confused with long term, if you have 1000 shares, and you think the market will go up, so why would you sell 500 shares? and if it does go up, then if you want to buy those 500 shares, then you will have to buy them at a higher price. so why would you sell them at first?
Mega Python (8 months ago)
You buy at support and sell at resistance.
Mavis beacon (1 year ago)
Sasha Evdakov Wow that was a great analogy! That made it all so clear. Salute
Mickeyislowd (2 years ago)
Would you recommend utilizing going short at times when you are within a Support/resistance zone or if the market is 'testing these possible areas of reversals.
Bebo PR (2 years ago)
Perfect!
pako ntshole (3 years ago)
I'm gonna make it a point to understand this stock market trading because 2016 i wanna start buying.
Matt s (2 hours ago)
+Oompa Loompa surely you're making a loss though?
FRank Finney (1 day ago)
Excellent explanation. Best I have seen.
Asley IceGold (1 year ago)
So how did it go for you? Aren't you rich yet?
Cam poops (1 year ago)
yea
Sherman Foo (3 years ago)
Great Video! I just get really confused when they combine it with Long, Short, Call, Put. For e.g.. A long call, short put.
Mavis beacon (1 year ago)
Sasha Evdakov Do you have any great analogies that would break down call, and put, as well as you've done with upside/long, downside/short?
forexformulasuccess (3 years ago)
+Sherman Foo Nice video Sasha..
Abraham Guzman (3 years ago)
Very helpful! Thanks
DonnyBrook (3 years ago)
If I short 100 shares, where do they actually go?  Does someone really buy them hoping I'll be wrong and they'll cash in??
SoulBaron (2 years ago)
+Sasha Evdakov (TradersFly) How do I borrow shares from ETrade?
DonnyBrook (2 years ago)
+Ian Konrad ah i see, thanks for the clearity!  cheers
Ian Konrad (2 years ago)
+Tormentality Don't forget, when you cover the borrowed stock (that is buy it back after the price has fallen) you return the stock to the broker or the borrowed portfolio. If the portfolio in which you borrowed the short stock from had a basis in that stock that is higher than the cover price then that portfolio takes a loss. When you borrow stock for a short, it is typically from holders with long positions on it, and they lose value anytime the price dips.
DonnyBrook (3 years ago)
+Sasha Evdakov Thanks for the reply!   So just to clearify: I borrow stock to sell, then buy it back (hopefully) when it's lower?  Am I understanding that idea correctly?
Selena Hearn (3 years ago)
I'm still really confused on the entire idea, and I can't seem to grasp the concept of investments and stocks.
Craftbeerdy (3 years ago)
If I go short Nike and the trend goes upward can I wait forever in the hope it will go below my initial selling price or is there a time limit? 
Craftbeerdy (3 years ago)
Thanks. The sense of my question was more simply to ask if there is any time limit/expiration to get out of a short or call position? So only my broker will ask me to get out of my position if I have a margin account and the broker's money is at sake? Is shorting more common for day traders compare to swing traders btw? Thanks a million. I'm going to buy some of your books on amazon. :)
Hey Sasha, great videos for me. In your opinion is it worth getting in to all this stuff? Is it true that you need money to make money or can you start from scratch do you think? Is there anything you recommend reading for a beginner like me? Thanks bud. 
White Van (3 years ago)
+Sasha Evdakov Do you know any online software that helps you practice stock markets with fake and intangible money using the whole stock market itself? Also, any sources (including your own) to mathematical, statistical or probabilistic proofs, theorems, or convenient stock market trackers that apply will help. I am a newbie at stocks but your tips really fit with my hypotheses about the stock market. Liked your videos so far and subscribed. :)
Joe Nye (4 years ago)
Great video, thanks!
Francis Kwarteng Armah (4 years ago)
I own some option calls. how do I take some off the table. I'm a biginner
Francis Kwarteng Armah (4 years ago)
To sell. I couldn't dive more into selling to buying them. Help please
Francis Kwarteng Armah (4 years ago)
How do I do it . Please
Michael Perry (4 years ago)
Put option on plug before earnings. Only purchase 1 option. Hope I picked it right.  Your thoughts Sasha. 
Musiknluv (4 years ago)
Thank you for your video on this and bull and bear. I'm studying for my series 6 and this clarified these terms tremendously!
Tony Sullivan (4 years ago)
Good info. I'm just learning and am thinking about trading seasonally.
cin cinati (5 years ago)
Crystal clear. I always get confused with long and short. You made it clear. thanks!!
Alan Gates (5 years ago)
Ok thank you, I was looking into the dividend route keep the videos coming I thoroughly enjoy being educated by them!
Alan Gates (5 years ago)
Love the videos! I subscribed! I just have one question. I am 22. I've been speculating the stock market about a year and a half it seems the best strategy at my age would be to invest long term. I have 3000 at my disposal and was wondering how you think I should go about it to make nice capital gains consistently year after year.
markup357 (5 years ago)
Thank u, this tutorial you have helps me to understand much better. I subscribed.
Pam0284 (6 years ago)
Ohh I see what you're saying, don't view someone's "Buy" as "Bullish".

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